The illusion of speed panders to many a trader’s excitable mind: The mind conceives the slow, steady turtle as rather boring favouring the excitement of the immensely fast cheetah. Speed is often mistaken for achieving results. It is an issue that has many trader’s lulled into over-trading, trading off too small a time frame in the hope of achieving quick, repeatable results.
Speed of execution is considered to be one of the benchmarks of good intra day trading.
While flawless, speedy trade execution is undoubtedly important, it is not the Holy Grail of trading success.
Having worked with many professional trader’s who had to make the transition from floor trading to electronic trading I got to realize that speed, far from aiding your trading success, actually goes against you particularly if you are an independent trader trading from home. There are many reasons for that, the more complex algos of today’s markets is one of them, alas it is by no means the most important aspect to consider and much overrated.
The real issue is your brain’s perception, how the mind interprets speed.
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