Costly Trading Mistake #6 (And How To IMMEDIATELY Fix It)
Not Taking Time Away From Trading
Most successful traders take regular time away from the markets for R&R.
Like most businesses, the business of trading can become obsessive. Many markets are active 24/7. There is always something new to learn and ways to improve. Like any other business or profession, traders need to get away from the business on a regular basis for R&R to recharge their physical and mental batteries. You would be surprised how many good trading ideas you will come up with in a relaxed atmosphere with no computers or internet.
Get A Life!!!
There is nothing wrong with being passionate about your trading business. In fact, success in any business is difficult without a passion for the business. But being obsessive or addicted to any business is not healthy or productive.
When you remove yourself from all the information and related activity for any business, you give your mind the opportunity to relax, experience new things and grow. The outcome is often not as anticipated. You will often come up with new trading ideas or perspectives.
Get Away From A Trading Environment
I recently spent three weeks in Argentina. I did have my laptop but did very little "productive" work. I let the folks at the office know that I would rarely check email. I only checked email one day the first week of my trip just in case there was a problem only I could solve. (There are fewer of these than I imagine.) I didn't update any data, charts or workspaces. I adjusted my daily routine to the Buenos Aires schedule. Dinner around 9-11 at night. Milongas (social Tango dances) until 2-3 in the morning, sleep until 10-12, dance lessons or sight seeing in the afternoon etc.
Even though I was in one of the great cities of the world with easy Internet connection and all the financial information I could want, I took myself out of any type of schedule where I would be a part of my trading business and had new experiences and a lot of fun.
With very little time during the three week trip specifically devoted to trading and business, my mind was free to make plans, consider options and come up with new ideas that I implemented after I returned. It was probably the most productive business time of the past few years yet the least amount of time specifically spent on business for a three week period in the past few years!
How To IMMEDIATELY Fix The Costly Trading Mistake of Not Taking Time Away From Trading
Whether you are a full time trader or not, take at least one week off per calendar quarter when you do not look at a chart, update prices, read a financial report or trading book or engage in any activity that is related to the financial markets or trading.
This is much more difficult to do than you may imagine. Even if you are not taking a trip away from home, you must shut down all trading related information for the week.
Spend the time on non-trading related activity. Try something new. Preferably some new sort of physical activity. You would be surprised how your trading business comes into perspective when you are not thinking about it.
If you can't take the one week per calendar quarter off from financial information or trading, you probably need help I can't give you. You are probably "addicted" to trading (see Costly Trading Mistake #2) and probably believe you will miss something important if you do not keep on top of trading 24/7. You won't miss anything. Markets have been active for hundreds of years. There will be more opportunities than you can handle after you come back from your week off from trading.
Take at least one week off each quarter from anything directly connected to trading and you should find your bottom line improve, IMMEDIATELY. Start next week!
