Geo Chen
· Fidenza Macro
· April 22, 2026 at 10:48
· ⏱ 5 min read
| Read on Substack ↗
Summary
The article argues that traders can improve profitability more by eliminating negative edges (mistakes, biases, habits) than by refining positive edges, using journaling to identify and systemically remove costly errors. Since it is a purely educational piece on trading psychology, there are no market implications or specific trade recommendations.
•The author defines negative edge as mistakes, habits, or biases that prevent executing a process or turn a winning strategy into a losing one, listing 18 common examples.
•He journaled his trades using a checklist of 18 mistakes, measuring their cost over time; his most common errors were failing to stick to stop losses and failing to protect profits.
•His largest losing trades sometimes lost several multiples of 1R; limiting them to 1R or less would have significantly improved profitability.
•He encoded solutions into his process: entering an automatic stop-loss immediately after opening a trade and trailing stops more frequently once profitable.
•Psychological biases like persistent bearishness (from 2008 GFC or 2000 dot-com bust) or bullishness (crypto echo chamber) create frustration and P&L losses; self-awareness and deliberate opposite-side setups are key to overcoming them.
•The article references Daniel Kahneman's 'Thinking, Fast and Slow' as a related resource, but makes no mention of any specific securities, positions, or market calls.