I was talking with Eyal the other day and we got to talking about trading mistakes. We mentioned two specifically:
- Taking bad trades (a form of overtrading)
- Skipping good trades
It turns out that we treated these mistakes differently where he considers one of these more serious than I do and vice versa. I think we agreed that both our outlooks on these mistakes were slightly off kilter – somewhere in the middle is where we both strive to be.
Which mistake do you treat more seriously and why? Do your actions line up with your goals with respect to these mistakes?
Update: Dr. Brett Steenbarger posts an excellent response to this question on his Traderfeed blog.