agile trading

Agile Trading: Dealing with Uncertainty

Do you know what the agile software development is? I didn’t either. At least, not until about a year ago. Since then, it’s come on my radar in a big way. And I’m glad it did.


Agile is an approach to product development management (and project management in general) that emphasizes a transparent and incremental approach, in contrast to a beuracratic waterfall plan made by a central project management office.

So why am I talking agile on this investing blog?

Good question. The reason is…

Ggile and investing have a lot in common. Agile is all about admitting that there are a lot of things you can’t control. But doing it anyway.

It’s about delivering value incrementally in an iterative way and… getting feedback from the market.

Do you see where I’m going with this?

One of the ideas underlying agile is that you can’t ignore uncertainty. You can’t plan for everything. And even if you try, how do you know that’s the best way forward?

I think investors face a lot of the same challenges: Success in trading and markets is also, in large part, about how you deal with uncertainty.

Because when you buy a stock…

You never know what’s going to happen next. I know a lot of people act like they do. But the truth is, no matter how much conviction you have, there’s only so much you can do.

So if you can accept this, rather than put your head in the sand, well, I think you can do better. And you’ll probably sleep better at night too. Same goes for agile project management.

The key is to keep moving forward.

Acknowledge uncertainty. Come up with a plan to deal with it when it happens. And trust yourself to execute.

You should also have a plan to measure your results, interpret the feedback you get from the market, and then adapt your behaviour to improve.

Don’t you see the similarities?

And oh yeah, golf is kind of the same way.