Stick To Your Strategy In Good And Bad Times

Many years ago, I took a course that the pit traders took to improve my bond trading performance and one of the guest speakers told a story about an institutional trader who he was covering. He said that he called this trader one days to share his views about the market and was told that he didn't care about his opinions and he went on to ask that he never call with his opinion again because he had a system that he followed and he found other people's opinion to be a distraction.

One day the trader called and asked "what do you think about the market?" and this speaker asked why he was asking because he had been previously told that he wasn't interested in his opinion. He told him that he was getting "killed" on his current position. When asked what he planned to do, he said I am going to buy more as this is what his system told him to do and then he was going to jump in his car and drive from Chicago to LA with no phone or radio and then he would check his position when he got there. When he followed up with him a week or so later, he was told that the position turned out to be very profitable and his system came through in the crunch.