Republish "Trading with Root Cause Analysis"

Please Note: This page is for web site authors who want to post this article on their sites. To read the article, click here. Thank You.

Here you can get simple copy-and-paste code for the articles that you want to publish on your site.

The Code

Just copy and paste the code below to a page on your site. You may modify the code as you like as long as you leave the article and byline unchanged and the links active. Keep in mind that we do not own the copyright for the majority of the articles on here. Therefore, we ask that you respect the author's efforts and keep the links and byline intact. Note that you may get into legal trouble with the article's author if you choose otherwise. Thank you.

<html>
<head>
<title>Trading with Root Cause Analysis</title>
</head>
<body>
<h1>Trading with Root Cause Analysis</h1>

If you have read my article on Pareto charts this will probably
make more sense to you.
Root cause analysis is another tool that traders could benefit
from. I know that some of these things do not seem trading related,
but you can improve results with them. When all is said and done
results are what matter anyway.
On your pareto chart you have identified weaknesses in your
trading style. Root cause analysis is how you start to fix
them.
First we need to identify the most prominent cause of failed
trades. Once this is identified you will need to write it at the
top of a separate sheet of paper. Below this you will ask a
question. What caused this reaction? Then you list the answer. Now
ask yourself the same thing about this new answer. List it. You
will continue to ask yourself this for each new answer, until you
cannot come up with an answer. Generally, you will only be able to
go about 3-5 levels deep. This is your root cause. This is the
start of the path that leads to the losing trade.
When you have reached the root cause you have one more question.
How do I avoid this root problem.
If it is a emotional problem maybe, you need to work to become
more self aware of the feeling that starts a process of bad
decisions. When this feeling starts to erupt, just exit your
positions and and stop trading for the day. It is better not to
trade, than trade and lose.
If the problem is psychological, maybe you need to find a
routine that works for you.
A good example of this is a baseball pitcher. A major league
pitcher has all the physical requirements, or he would not be in
the majors. Some pitchers have been known for having quirky
routines they go through on each pitch. There are some pitchers who
have had terrible seasons because they lost something in their
routine. Their physical attributes have not changed, only their
mindset. Their routine is only psychological, but the results of it
being off are all to real.
Of course, if it ends up being the system the fix is obvious,
scrap it.

<div>Author Info 

<a target="_new" href="http://shadow-trader.blogspot.com/">The
Trader Mindset</a>

</div>

Article Source: <a href="http://www.innoarticles.com" title="Your #1 Source For Quality Articles">InnoArticles.com</a>
</body>
</html>

Republish "Trading with Root Cause Analysis"

The Code

Related articles you can post on your site