Decision Fatigue Is Killing Your Trading
In trading, decision fatigue is a real thing.
If you aren't filtering down, and the majority of your scans look like this
with dozens of names on them at all times, you are playing the wrong game.
The goal is for your scanners to look like this, more often than not.
If you are simply scanning with a wide net like top gainers, top losers, or stocks moving on relative volume, and not getting specific with what you actually do in the market, you are forcing yourself to make hundreds, if not thousands of decisions every single day.
Those decisions often look like this:
- Should I trade this stock?
- Is it a long?
- Is it a short?
- What is the setup?
- What is the news?
- What is the story?
- How big should I be in it?
- How good of a opportunity is it within this playbook?
You don’t want to be doing this across dozens upon dozens of stocks every day.
Instead, you should identify an edge in the market, learn what makes the very best opportunities within that edge, and build that into a filter.
All of a sudden, that filter or scanner might only fire twice per month instead of populating dozens, if not hundreds of stocks every day.
If you develop a few edges, you repeat this process. Now instead of endless noise, you’re taking a handful of high-quality trades each month.
This is how most point-and-click traders actually build careers in the market.
Not by scanning hundreds of stocks all day and burning out from decision fatigue.