I am often asked, “Do you use your system every time you trade?”

The answer should be “Yes”. And I have to fight human nature to give the correct answer – which is ‘No”. Human nature seems to make us want to say things that are not always true. I have often pondered this – and my opinion is that we humans generally want to give the answer that the other person is expecting, even if it is not completely true. We humans seem to accept that little white lies are acceptable – even desirable at times.

Oh well, I can’t change human nature – not even my own – so I just have to live in the world as it is.

But back to the original question: “Do you use your system every time you trade?”

The main reason why the answer should be “Yes” is quite simple:

Virtually every time I take a loss greater than my usual risk allowance it is because I ignored some aspect of my system. Either by entering a trade that did meet my systems minimum standards for a trade or, more often than not, staying in a trade going bad longer than my system allows. The latter is usually the result of rationalizing – some might call it wishful thinking.

Rationalizing is ordinarily considered to be a good thing to do before taking action. However, in short term trading things are happening very fast at times. When fast rational actions are required it is best to have done the rationalization before hand – hence a trading system.

Human nature also tends to make us hesitate in a crisis – perhaps to give us time to rationalize.

Analyzing our trading performance over time has shown without question that we do far better when we strictly follow the trading rules of our system.

A good trading system properly executed and strictly adhered to is the short term trader’s best bet to reaping consistent trading profits. Try TBL – you may just find that it is right for you.


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