Failure

Failure as an active trader can present itself in many forms. Many traders are concerned about just keeping their head above water and making it through the learning curve to where they can profit. Other traders have already found that consistency for the most part and much of their thinking is about how to advance and increase profits. In the latter case the failure to account for and act on signals or setups that have been identified is a huge form of failure. This week I had a failure in that regard.

The time and energy I spend on the defining and mining of signals for alpha is wasted without action. Active trading is about defining when an action should be taken and then taking action. Inaction is a form of failure after you have done the work. I am not talking about anything impulsive here. I am not talking about how something may feel either. I am only talking about a defined signal which your work has said you need some exposure. Get some capital at risk.

I had defined the signal the failure came from not having an actual action plan. I didn’t define exactly what I would do when the signal fired. I need a go to product and plan. I know that many products can work to exploit the signal, but I never settled on just one. Instead of having a simple action plan that would have allowed to me to profit I got nothing. I wanted to spend more time evaluating the products first. I wanted a more perfect product rather than a good product. I could have chosen one of five different products with ease, yet I didn’t. Failure. No other way to phrase it. Opportunity missed. This blog will ensure that this won’t happen again. This is my look in the mirror. The week was a good trading week. However my self grade was very low.

Simple action plan now in place. I have chosen one product and have built in a daily signal reminder so it should never be a surprise when the alert comes. I know as I trade the signal more and more I will be in the position to choose the best product or multiple of products. The key is action will be taken next signal. Inaction is failure.