Thursday, September 14th, 2006
An innovative way to stop overtrading
Last week I outlined a few ways to help you stop breaking trading rules. Ugly at uglychart.com has come up with an innovative way to stop himself overtrading. Basically he’s set up a system that shuts down Cybertrader automatically every ten minutes after 1pm so he doesn’t trade after lunch.
Ugly’s technique reminds me of an article written some time ago by hedge-fund manager Tim Truebenbach where he said he had a basic checklist that clicked up. He had to fill it in before being allowed to make a trade.
I’ve found the brain can play amazing tricks when it comes to investing. We can become irrational without even knowing it when money is on the line. So any tricks like Ugly’s can help shift us back to being a rational, rule-abiding trader.
Word Count: 121. This entry was posted on Thursday, September 14th, 2006 at 7:04 pm and is filed under Investing psychology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
