Removing Personal Bias

Discussion in 'Psychology' started by svrart, Jun 19, 2005.

  1. As an alternative to eliminating your bias you can also change your bias.

    George Soros wrote in his books that he makes a right call only about 50% of the time so the key to his profit is to limit losses. This involves a combination of humility, because you have to be quick at accepting that you're wrong, and a taste for intellectual challenges, because what drives Soros and succesful traders to be quick at recognizing contradicting clues and facts on their existing trades is to continuously ask themselves "where am I wrong?". Sort of a pursuit for continous improvement based on strong risk aversion.

    There's no perfect trade. There's always something wrong or something that could have been done better so maybe your bias should be an obsession for finding reasons why you might be wrong or why your trade was less than optimal and, by doing so, improve every single day.
     
    #11     Jun 28, 2005