News & Analysis

Are You an Honest Trader? 5 Powerful Questions to Ask Yourself Now

11 April 2019 By Mike Smith


“The least initial deviation from the truth is multiplied later a thousandfold.”  – Aristotle

We came across the above quote from the famous Greek philosopher and couldn’t help thinking how relevant this is to trading, so thought it was worth a discussion to stimulate some self-reflection of your behaviour and thinking like a trader.

The reality for most people is that:
a. We are either not trained, or often not encouraged, to review ourselves with balance.
b. We invariably do not have the required tools to facilitate such a review.

Both have massive relevance in a trading context and can be costly in dollar terms not only in individual trades but over a lifetime of trading.

Humans generally tend to over-estimate knowledge and performance particularly if they have been doing something for a longer period. We become less accepting that we need to do some work on ourselves, perhaps have gaps in our education, or take personal responsibility for the results of our endeavours (in context look for someone or something to blame for dissatisfying trading results).

At the risk of appearing over-critical, please don’t take this as such rather an attempt to give you some food for thought to tighten up your trading game.
Being completely honest about where you are now, even if there are gaps in what you are doing, is one of the most powerful exercises that can contribute to your development as a trader. It doesn’t get more positive than that!

Your FIVE key questions

So, taking this forward, here are some practical tips that may be beneficial. No matter how experienced you are now. Ask yourself:
1. Do I find myself blaming others/the market for the results I am getting rather than “owning” my results (this is often the crucial first step in taking action…bottom line…you won’t unless you take FULL responsibility)?
2. Have I worked hard enough to complete the education I have access to and can state with confidence that I know all content covered?
3. Do I have complete and comprehensive systems that guide and review my trading including a trading plan and journal/review system?
4. Have I tested the components of my trading plan against alternatives to make sure that I am making evidence-based decisions for all trading actions?
5. Do I follow through with ALL aspects of my trading plan with every trade?

So, your mission…
a. Complete the above (make some notes on the questions about where you are now and any potential gaps that you think you need to fill, not just read them).
b. With the list you have created, put these in order of how much of an impact you think they could make to your trading results.
c. Start with the first step – Take Action! (and when complete, get working on the second and so on).

We can help with the training to help you in doing any necessary gap-filling through education both in our Next Steps Course and our Inner Circle education community.

Join us, it would be great to see you there.

Ready to start trading?

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.