The reason why its important to track and measure performance is not the actual measurement in itself - its to provide actionable information for us to improve our game.
Americans are the no.1 when it comes to statistics - just look at their sporting stats!
But why is it then some have been tracking and measuring their investing/trading performance for years yet there's little or no improvement?
Denial
The butterfly had a good post recently where he was upset with himself for not sticking with his stock entry plan.
Excellent!
If we deviate from our plans and we then lie to ourselves that its "OK", why track and measure again?
Where there's no problem; there's nothing to improve.
That's is why in group therapies dealing with alcohol abuse, compulsive gambling, anger management, etc; the first step is to admit we have a problem.
Procrastination
Once we have a reason to improve, the next natural thing to do is action.
That's easier said then done.
And we know this all too well...
We know what to improve, but we never seem to find the "time" to do anything about it.
No time?
Yup, its back to denial...
Or maybe the nail does not hurt enough yet.
Common sense (or lack of)
Fantastic!
You admit you have a problem, and you took action to rectify it!
However, some have a bad habit of doing the same thing over and over again, and expecting a different result?
Action is good; but we need some common sense too.
No, we don't need a Phd to start investing or to do trading. But being an idiot does not help, does it?
One good example is averaging down on your loser of a stock. Each time you buy, that lemon stock goes even lower...
You ask if don't average down how are you ever going to recover?
The fisherman has a very good quote and actionable strategy (with track record):
You win back not the same way you have lost.
No. I won't explain it. If you interested, go buy CW a drink and hear from the horse mouth yourself.
Hollywood only; no guts to make a decision
Have you noticed some colleagues or managers like to collect data and reports all the time?
But never making a decision?
Tracking and measurement are just tools.
Tools can't make the decisions for you.
How to tell you have decision making phobia?
You have been tracking and measuring your investing/trading performance for more than 5 years, but not once have you made any concrete actions for improvement...
What's the point of tracking and measurement again?
Oh!
To look busy!
Singapore Man of Leisure (welcome to my blog; just google it!)
