Do No Harm

 

There is a principle within the field of medical ethics which is often expressed through the phrase, "First, Do No Harm".

To simplify the concept, it means that we should ensure that our decisions and actions do not contain potential for harm which far outweighs any potential benefit.

I like this principle. It's useful not just in medicine, but in life in general. And it certainly applies to the field of trading.

You might want to consider applying it as a principle underlying your approach to the markets.

All decisions and actions within your life have potential to either add to your edge or take from your edge.

If you avoid those which can damage your edge you'll go a long way to improving your chances for success.

What do I mean?

Think about those few extra drinks you had last night which have you feeling a little under the weather?

Do you really need to be trading today?

You'll rationalise it by saying "It's only this once. I'll manage ok.".

But it's not just this one time.

By giving yourself permission to trade this one time, you'll make it easier to repeat the behaviour in future.

So I want you to consider this… extend the behaviour into the future. A hundred times. Or a thousand times. Take it to ridiculous levels. It will help you see the damage this can cause.

"If I made this decision a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

You're not trading with the effects of a hangover just once. You're giving yourself permission to do it again. Break it now.

"If I traded with the effects of a hangover a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

Do no harm!

Take the day off. Return refreshed the next day.

Do you know how sometimes you feel like skipping your post-session reviews? You'll just do it this one time, right? Wrong.

"If I skipped my post-session reviews a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

Do you know how sometimes you just know that the market will turn, and so all you need to do is widen the stop a little further? Just this one time, right? Wrong.

"If I widen my stop a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

Do you know how sometimes you're massively pissed off at your job/spouse/partner/life/or-whatever and you know you should put it aside but just can't? So you'll just trade anyway. You're professional enough to not let it influence decision making. Right? Wrong.

"If I trade while under significant life-stress a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

All decisions and actions within your life have potential to either add to your edge or take from your edge.

If you avoid those which can damage your edge you'll go a long way to improving your chances for success.

Do no harm!

Ask yourself…

"If I made this decision a thousand times across my whole trading career, is it likely to add to or reduce my edge?"

You might want to add this to your wall… just above your monitor.

Happy trading,

Lance Beggs

 

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