Take a moment to thoughtfully and honestly consider what is the greatest drag on your P&L.   Is it the market itself, as in a chop, trend, or sideways? Is it your system or strategy?  Or is it possible that you are the greatest drag on your P&L?

Traders are often their own worst enemy. Many traders have an idea that this is the case after a specific trade that went awry, but for a variety of reasons, they soon forget or ignore that realization and plow right back into the market, and repeat the same mistakes. There’s a good reason for this. It’s often easier and/or more interesting to look at charts and imagine what the market might do, compared to turning inward and engaging in self-examination to determine if any changes in your approach to trading may be needed.

One of my fundamental principles in trading is that one must learn to do more of what works and less of what doesn’t. I know that that sounds obvious, but in reality, most traders never seem to get around to it, or do the opposite, resulting in the same recurring mistakes over and over.  What would happen if you identified a recurring mistake? Would you do anything differently while trading as a result? Would you need or use some type of structure or process to assist you in not repeating the same mistake?  I suggest you take a moment to seriously consider this very important aspect of trading that might be holding you back. Simply making a New Year resolution may not be enough, you may need to actually do something about it.

The only thing we actually have any control over is our behavior. The market will do what it will do.  If one is truly interested in maximizing performance and improving P&L, then a focus on behavior and the associated thoughts and emotions that appear with those behaviors must become a primary objective. We may not be able to control our emotions, but we can learn to manage them. Otherwise, your same pattern of mistakes will continue to occur. Even the best set of rules may not prevent you from repeating the same mistakes. It often takes more then rules. It takes self-understanding, ability to tolerate discomfort and uncertainty, and resilience in the face of disappointment.  Eventually, with practice, this becomes more of a habit and not so difficult.

So, if you recognize that you are your own worse enemy in your trading, are you going to actually do something about it?  Journaling, mental rehearsal, visualization, meditation,  and many other techniques are available. Or will you simply gather more information and occupy (or distract) yourself by continuing to do more of what has not been working?