Tuesday 18 October 2016

Its not about the tracking and measurement silly!

The reason why its important to track and measure performance is not the actual measurement in itself - its to provide actionable information for us to improve our game.

Americans are the no.1 when it comes to statistics - just look at their sporting stats!

But why is it then some have been tracking and measuring their investing/trading performance for years yet there's little or no improvement?


The butterfly had a good post recently where he was upset with himself for not sticking with his stock entry plan.


If we deviate from our plans and we then lie to ourselves that its "OK", why track and measure again?

Where there's no problem; there's nothing to improve.

That's is why in group therapies dealing with alcohol abuse, compulsive gambling, anger management, etc; the first step is to admit we have a problem.


Once we have a reason to improve, the next natural thing to do is action.

That's easier said then done.

And we know this all too well...

We know what to improve, but we never seem to find the "time" to do anything about it.

No time?

Yup, its back to denial...

Common sense (or lack of)


You admit you have a problem, and you took action to rectify it! 

However, some have a bad habit of doing the same thing over and over again, and expecting a different result?

Action is good; but we need some common sense too.

No, we don't need a Phd to start investing or to do trading. But being an idiot does not help, does it?

One good example is averaging down on your loser of a stock. Each time you buy, that lemon stock goes even lower... 

You ask if don't average down how are you ever going to recover?

The fisherman has a very good quote and actionable strategy (with track record):

You win back not the same way you have lost.

No. I won't explain it. If you interested, go buy CW a drink and hear from the horse mouth yourself.

Hollywood only; no guts to make a decision

Have you noticed some colleagues or managers like to collect data and reports all the time?

But never making a decision?

Tracking and measurement are just tools.

Tools can't make the decisions for you.

How to tell you have decision making phobia?

You have been tracking and measuring your investing/trading performance for more than 5 years, but not once have you made any concrete actions for improvement...

What's the point of tracking and measurement again?


To look busy!


  1. To look busy. Ah. That's it. Doing something/anything tends to make people feel like they are making an effort or accomplishing something regardless of the outcome.

    Just like when someone goes YOLO! No amount of expense tracking will do any good without making changes to your lifestyle. Maybe try budgeting instead?

    1. Kevin,

      And that's the crux - its what's inside of us that matters more!

      Budgeting can't help those without self-discipline to stick to it...

      Goal setting does not work on those who can't make up their minds...

      Planning is too restrictive to those who likes to impromptu...

      Sometimes it's good to ask WHY I am doing this activity?

      Will it lead to any changes in my behaviour or lifestyle?

      Maybe it did make sense years ago... But now it has outlived its original purpose?

    2. Quote : "You have been tracking and measuring your investing/trading performance for more than 5 years, but not once have you made any concrete actions for improvement...

      What's the point of tracking and measurement again?"

      Book keeping?

      We have book keeper, accountant and auditor. So we the Book Keeper?

    3. CW,

      Funny you should mention book keeper, accountant, and auditor.

      Contrast them with CFO and Financial Controller ;)

      If I'm the land owner or chief shepherd, I'll be worried if my CFO or Financial Controller spends more time collecting data than proposing actionable initiatives to help the company Earn More and/or Save More.

    4. We have many book keepers, accountants, and auditors but fewer CFO and FC. :-)

  2. Hi SMOL,

    I guess tracking makes pple feel that they had done something, even though it's really just another procrastinating technique. If I kept myself busy measuring, maybe don't have to think haha!

    I see students doing the same thing too. They keep doing ten year series, but they never stopped to think and reflect on why they had the same mistakes over and over again! I had to stop them from doing more and ask them to think more! But is this better than someone who haven't done anything? Hmm, hard to say, maybe it's better but just slightly so haha

    1. LP,

      Yes, that's the word! Procrastination!

      Thank you!


      Thinking is hard.

      Making a decision is even harder.

      But I got study hard and work hard! So its not my fault!

      It's big daddy's fault!

  3. Is there a book that teaches you how to think?

    1. Blursotong King,

      I've employed the techniques in Edward de Bono's books on Lateral Thinking and 6 Thinking Hats for my projects and brainstorming sessions with project members.

      Then there are textbooks on Consumer Behaviours found in Marketing courses - interestingly, knowing how marketers use Jedi mind tricks on us has led me to be being more cognisant of how I think.

      Or to be precise - whether its me doing the thinking or am I merely outsourcing my thinking by "parroting" others ;)

      And of course, if its not against your religion, Zen Buddhist books can be a lot of voodoo fun for mind gymnastics!

      Oh silly me! Just read widely.

      Don't be the man of one book.

  4. Hi guys,

    I like to see thinking like exercising. You need to learn the right techniques (http://www.wikihow.com/Think), you also need to eat the right food by reading all sorts of books (not just blog posts or short articles) and you must want to exercise (or think). That last one is the motivator, the reason for being. Being curious helps a lot, to the extent that you can't help but think LOL

    1. LP,

      I am curious.

      Insipid teachers and pedantic bosses tried to douse the flame of curiosity in me; they failed ;)

      I'm lucky I've stumbled onto trading, and found it most intellectually stimulating!

      The amount of study, hands on experimenting, and long reflections - just to have that little edge over the person taking the opposite side my trade is mind boggling...

      Come to think of it, I must buy all those charlatans who preach all you need is 5 minutes a day a drink!



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