Albert Einstein is widely credited with saying, “The definition of insanity is doing the same thing over and over again, but expecting different results.”
As traders this definition strikes a cord because we are constantly fighting the same bad practices that ruin our P&L. We can get into a trap of wanting our method to work so badly that we become “insane” over it. It’s very hard to break the attachment we develop to our strategies because we work so hard to develop them. All the screen time, spreadsheets, and obsessing over every little detail. It becomes your baby and you want to see it grow. It becomes an unhealthy attachment.
If insanity is ruling any part of your trading look for someone else to check the math. As traders there’s only one thing we can have confidence in and that’s the numbers our actions produce. Find someone to look at what your attached to and objectively run the numbers to see if it has edge. It could be an entire method of trading, a strategy, a setup, a particular trigger, your confirmation, your algorithm, or anything that you can’t let go of. Open yourself to the possibility that we all go a little “insane” with our trading and seek some help.