Complacency and getting better as a trader

How do you guys improve as traders and prevent complacency?

Lately I’ve been getting better tools for my specific trading needs (Brokers, Charting, TMX power stream)

Using something like trade metria to journal trading statistics and performance which helps me tremendously in figuring out what works and why.

Only focusing on one very specific market and instrument (illiquid Cnd equities for me)

Reading everything I can about that market and preparing for market structure changes in the future.


But as I became a better trader I have become almost complacent to my p/l. Almost happy with being average. You get somewhat comfortable. When I first started trading I had no other choice to get better or I would become broke.

Now the need to grow and get better isn’t as strong. I don’t know if it’s because I have less time to devote to creative thinking or a lack of passion or if it’s because I am doing so much work for logging trades, testing out new strategies, tracking performance, entering and canceling orders etc.

I don’t know if any of you are the same way, I am grateful that I was able to turn a hobby/ passion of mine into something that gives me money but I have also given a large part of my young adult life for it and it has cost me dearly in other ways.

How does one keep improving? How do you guys keep getting better and better every day?

Take care
apo

 

Try to learn and trade more markets/ instruments to increase your pnl. Another way is to automate things.

 

good

stay where you are, remember: the better is the enemy of the good

if and when you will feel that you are capable of more the move to improve will come naturally

also, I strongly suspect that at some point in the future your method will stop working and that will be the necessary kick in the butt (necessity is a mother of the invention) that will push you to improve the method (also, not necessarily you will be able to do that)

 

Thank you for this thread. These are great questions. The easiest answer is that you need to set goals and then hold yourself accountable to them. For some people, performance goals create stress (as opposed to process goals) but for your situation you may need performance goals to keep you motivated to get better. Further, fill your mind with motivational material -- it doesn't have to be trading related -- anything that encourages and inspires you to grow and improve as a person. I believe that if you're truly growing as a trader, you should be growing as a person as well.

 

Becoming better at something requires you to find your weaknesses/mistakes and overcome them.

 

I don't think trading more markets will help, focusing on one thing was the only reason for my limited success in trading. Rather be a master of one. Sadly it is very difficult to automate for me since there is a lot of discretionary work involved

 

Thanks, that is exactly what im scared of.

 

That's very well said. I think its important to focus on process more than performance,

 

Greed is the best motivator for getting better and a great destroyer of accounts.
Look for other edges constantly, look for other instruments for your working strategies, test everything.
If too much time is spent on mundane tasks then you need to automate.

 

Two thoughts:
1) Sitting: If you're going to be a professional trader, you're going to have to bring a solid work ethic to the table. So, what happens when things start working? When things start behaving as you think they should? ACK! Nothing to do!! One of the most difficult things to learn is to not over-trade, not force a trade, or as I glued it into my head: SIT ON HANDS. It is very hard for a good trader (one with a work ethic) to S.O.H.. But clue: If you give it a stupid name (like, "S.O.H. Angst" it will be easier. It has an identity.)

2) Broadening: While I agree with the idea of sticking to your particular product/technique in order to shine, shine, shine, there is also the idea of "always having another [and fundamentally different] iron in the fire" because as qxr1011 wrote, "at some point in the future your method will stop working and that will be the necessary kick in the butt (necessity is a mother of the invention) that will push you to improve the method (also, not necessarily you will be able to do that)."

I used to scalp equities, then ES ticks, then did some index credit spreads (at a time when you could mill 2% from the market week after week, and vol<11 or 12 was a headline-maker).
As I got better, and the market got tougher, I had to "invent" trades to deal with shit vol. -- my thoughts went from positions to the entire inventory -- then to inventory (portfolio) management, then back to trading statistics almost like for scalping, then a really *detailed* study of the sold Risk Acceptance of the credit spread against the Premium Received of the reward end of things....... This past summer, I ironed out conditions for *me* to actually BUY some long positions via calendars. But that's what week after week, month after month, of sub-10 VIX, or even-and-by-Gawd, sub-8 VXST, and the *laughable* effort to even pull 1% from the market each week, will do to you.

Always be a learnin'.
Always be prepared to recognize when *not* to trade, and be willing to recognize Your Inner Trading Awesomeness, and SIT ON YOUR DAMN HANDS.
And Please! don't ever force a trade.
"Capital Preservation" over all else.