When used as a verb, tinker has the following definition: attempt to repair or improve something in a casual or desultory way, often to no useful effect.
When I was younger I would have several successful trades or weeks, then get hit by a big loss or several losses and I would immediately start to tinker with my trade setups and indicators.
This of course immediately messes with your head and doesn’t help. I was reminded of this as I watched golf this weekend.
Shaken
The Open Championship from Royal Troon Golf Club in Scotland started on Thursday. One of the players they talked about was Bobby Clampett. He came out on the tour in 1980 as another rising star after a great collegiate career.
In 1981 he tied for 27th in the PGA championship and in 1982 tied for 3rd in the U.S. Open prior to going to Scotland for the 1982 Open Championship (often called the British Open).
At the 1982 Open Championship at Royal Troon in Scotland, he started off with 67 and 66 for a 5 shot lead going into the 3rd round. By the 5th hole in the 3rd round his lead had increased a couple more shots but then he had a disastrous 6th hole.
On the 6th hole it took him 3 shots to get out of a sand bunker and his confidence was shaken. He went on to shoot 78 and 77 the next day to finish tied for 10th. Bobby said that he then started to tinker with his golf swing and he struggled.
To his credit he did go on to win the Southern Open in September 1982, 2 months after Royal Troon, but it was the only win he would record in 15 years on the PGA Tour.
Don’t Tinker
I’ve talked about the similarities between golf and trading before. But when I heard Bobby’s story and watched the interview it made me think of how easy it is to tinker with your trading indicators or trading setup in the never-ending search for perfection.
There is no holy grail. The sooner you realize that the better off you will be.
Video
The following video is a brief snapshot of what I provide my Insider Members. In this video I review this week’s market action by reviewing the Dow Jones Industrial Average on a daily and weekly basis then check one of my key indicators.. I also review several ETFs including SMH, XHB and XLF. Special guest is the Nasdaq Biotech ETF (IBB).