Download the Schwab app from iTunes®Get the AppClose

Mark Eidem on Factors Affecting Trade Performance

Mark Eidem discusses his thoughts on factors affecting trade performance

Click to show the transcript

Some of the common hazardous attitudes that affect new traders are really some lessons I learned as a flight instructor for about 15 years, 'cause they're the same hazardous attitudes that cause errors in decision-making by pilots. One of the biggest ones is impulsiveness. And impulsiveness is a recognition, 'Oh-oh, something's wrong. I've got to something about it right now.' And, really, the solution to impulsiveness is, 'Well, stop. Time out. Take five.' Consider your options, consider your choices, decide which one of those is best, and then act accordingly.

Another one is invulnerability, and this really tends to play upon traders who are trying to make a lot of money very quickly, focusing on big profits. Invulnerability: 'That won't happen to me! I can take big positions. I can take a lot of risk. I can swing for the fences. I won't blow up. That won't happen to me.' And the anecdote is, 'Wait a minute, what could go wrong with that? How could this happen to me?' And by incorporating a recognition that those two hazardous attitudes exist, new traders can develop better habits and build better strategies.

Schwab has tools to help you mentally prepare for trading

Learn more >

Talk trading with a Schwab specialist anytime.
Call 888-245-6864
M-F, 8:30am - 9:00pm EST

Get 500 Commission-Free Online Equity and Options Trades for Two Years

Learn More >

Important Disclosures

Past performance is no guarantee of future results.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.


Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.