The difference between edge and cheap entertainment trades
Posted: Thu Oct 22, 2026 12:38 pm
Some trades are taken because the setup is there. Others are taken because trading is exciting and sitting still is boring. The second kind is entertainment, and it has a cost.
Signs of entertainment trading:
- Trades outside your plan.
- Trades in quiet markets "just to be in".
- Small size because "it doesn't matter".
- Trades after reaching the daily target.
- Trades while distracted.
The cost:
- Spread and commission on every trade.
- Negative expectancy on unplanned trades.
- Erosion of discipline.
Separating them:
- Tag every trade: planned or unplanned.
- Review monthly: what's the expectancy of unplanned trades?
For most traders, unplanned trades have clearly worse results. Seeing the number makes it easier to stop.
If you need excitement, find it elsewhere. Trading should be boring most of the time.
What percentage of your trades are unplanned?
Signs of entertainment trading:
- Trades outside your plan.
- Trades in quiet markets "just to be in".
- Small size because "it doesn't matter".
- Trades after reaching the daily target.
- Trades while distracted.
The cost:
- Spread and commission on every trade.
- Negative expectancy on unplanned trades.
- Erosion of discipline.
Separating them:
- Tag every trade: planned or unplanned.
- Review monthly: what's the expectancy of unplanned trades?
For most traders, unplanned trades have clearly worse results. Seeing the number makes it easier to stop.
If you need excitement, find it elsewhere. Trading should be boring most of the time.
What percentage of your trades are unplanned?