I ran a rather harsh piece on the site today concerning a noted perma-bear and his most recent bit of revisionist strategery.
Every one of us is wrong about different phases of the markets, sometimes for extended stretches, and it can be very painful no matter who are you. The difference is, some of us admit when we’ve made mistakes and then seek to correct them. Others pretend that they are incapable of making mistakes – to their own peril and the peril of their followers, partners and clients.
I’m going to send you over to the best piece of advice you’ll read all weekend about admitting when you’re wrong, written by my friend Eli Radke:
Admitting when you are wrong does not necessarily make you a better person. It does make you a better trader. You can’t hide from your losses. The longer you have thoughts or feelings that are positive about an action that produces a negative result, the harder it is to change that behavior. Said another way, you never get caught the first time. I look at what happened with Tiger Woods or any celebrity that messes up and I have little doubt that if they did not get caught they would still be doing it. That is what makes the market different, it rarely rewards individuals for making bad decisions. If I do everything right I am not guaranteed to make money, it is because if I make a mistake I will have to pay for it. Maybe not in that trade but in terms of reinforcing behavior that eventually will cause me to lose money.
Head over at the link below and make sure to subscribe to his feed, Eli’s been doing some really personal, helpful stuff for traders lately, you will love.