Is it me? Is it the market?
When does consistency become insanity? We have heard the phrase, if you keep doing the exact same thing over and over and expecting different results, you obviously enjoy eating dog poo. I think that's the saying?
But seriously, when should you stop following a plan or following rules or following a system or strategy. And the answer is, when the variables change. If you flip a coin 17 times in a row and it hit heads each time would you be an idiot to make a bet that tails is next? ORRRRRR, would you inspect the coin to ensure it is two sided? [A variable change]
In trading, certain strategies (most) work very well when the market is trending up. When does the variable change? When does that shift happen?
When should we, inspect the coin as it were, and review our past trades, our past mistakes, look for new variables, New data points and make appropriate changes.
This happens with every aspect of growth. If you go to the gym and bench the same exact way, with zero change to your form, only increasing your weight - you WILL get stronger!! But there will come a plateau. And potentially injury.
The best will SLOWLY tweak and make adjustments over their lifetime. But they will not quit trading - ahem - bench pressing.
In trading we have to determine - AS QUICKLY AS POSSIBLE - “Is it me? Or the market?” Hint, it's almost always you.
But the market can “shift”. With changes in trends, or some weird underlying current fluc
tuation what used to work usually *takes longer to work again, than most are willing to wait*
So you throw more money at it, because that's the problem. More money means it will work?
If I flip a coin 11 times in a row, hitting heads each time, inspect the coin and determine it's legit.
I will wait until it hits tails *three times in a row* *then* bet on heads. There is a time where I stop, where I wait, where I analyze. Everyone should have this.
Insanity is fighting trends. Fear is what leads to panic. Be flexible. Admit you suck. Admit you were wrong. Wait, practice, pivot, study, back trade and remove as many variables as possible. Profitability… INSANE profitability is 2nd grade math, Mixed with a lot of waiting with a dash of fearless aggression.
Master yourself and you will master the markets.
With light and love ~