trading psycology

In my new book, Super Trader: Make Consistent Profits in Good and Bad Markets, there is a short quiz that I reprinted here.

1. Do I treat my trading/investing like a business? Have I prepared for it like a business?

2. Do I have a business plan—a working document to guide my trading business?

3. Do I identify and address my mistakes regularly (a mistake means not following my rules)?

4. Am I following a regular procedure to prevent mistakes?

5. Do I have a tested system? Do I know its System Quality Number™?

6. Do I know how that system will perform in different kinds of markets?

7. Do I know what kind of market we are in now? Do I know what to expect from my system in such a market?

8. When it’s not expected to do well because of the market type, do I stop trading it?

9. Do I have exit points preplanned for every position I currently have in the market?

10. Have I developed specific objectives for my trading?

11. Do I understand that I achieve my objectives through a position sizing (TM) algorithm? Have I developed a specific position sizing algorithm to meet my objectives?

12. Do I understand the importance of the above points?

13. Do I understand that I create my own investment results through my thinking and beliefs? Do I accept responsibility for that creation?

14. Do I regularly work on myself to make sure that I follow the above points?