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@ Henrik Ekenberg
2025-06-02 07:40:51
Jumping Strategies Too Soon Is a Common Cause of Failure
A key reason traders and investors fail is abandoning a sound long-term strategy during short-term underperformance.
Amateurs often chase systems that seem to always work. When their strategy hits a rough patch—as all strategies eventually do—they quickly shift to something else, hoping for immediate results.
In professional money management, this behavior is called style drift—changing strategy when results dip. It's viewed as a red flag by institutional investors because it signals lack of discipline and conviction.
Strong performance comes from consistency. Staying with a strategy through cycles—while measuring it with long-term data—is what separates professionals from performance chasers.