Coaches Can Take Portfolio Managers & Traders To The Next Level
2. Lack of emotional detachment: Rare is a trader who has never been a victim of having “fallen in love” with a trade idea or a position. Where the need to be right, or the fear of being wrong, is so strong that traders often cannot let go of a losing idea or position despite mounting losses and evidence that they have on the wrong trade. Such emotional attachments, if frequent, often make for short careers. Other forms of emotional attachments, excessive anxiety and obsessive monitoring of markets outside of business hours, negatively impact work/life balance and over time result in “burning out”.
3. Lack of trading discipline: Most traders have a strategy and a process as to how they approach markets. A process for identifying trade opportunities, trade structuring and position sizing. There is also a process for risk management – position management, profit-taking and stop loss limits. If this disciplined process breaks down, and it does break down more often than we like to admit, the consequences can be disastrous. Exceeding stop loss limits, taking profits prematurely and over trading are often signs of trading discipline violations.