The most valuable thing in trading

Rule #1: Expect to be wrong.

Rule #2: Admit Error

Rule #3: Repair

source:ritholtz.com

During my short trading career I have found out that: objective self-reflection is the most valuable skill you have to develop to be truly successful. And not just in trading but in whatever you pick up to be your lifepath. In all aspects of life this property is invaluable. My self-reflection process goes like this:

1) be aware (be in the moment) and constantly ask yourself: can I improve, am I right, would I produly introduce my output to the world and would not be ashamed?if the answer is no, goto 2
2) identify and log
3) review and accept/admit
4) repair and set a path of how not to repeat the mistake again
5) put step 4 in practice, goto 1

So next time you do a mistake, tap yourself on back once for realizing it first. And tap yourself twice if you followed process similar to one described above. A friend-trader of mine(boocha) is using very effective way to activate the first step of the process. Every trade he takes he question himself: “would I be proudly showing this trade to my trading buddy after the trade is over and not feel ashamed of it”. Whenever the answer is no, it is probably a trade not worth taking.

Think about it;-)