How you do anything is how you do everything.
I trust you took advantage of some good moves this month. Intraday traders need to be mindful of the high impact news in September and avoid trading 1 hour either way of high impact news for your M15, M30 and H1 trades.
I feel that Traders around the world can learn so much about trading from everyday life experiences. Let us see how you can integrate your learning further and create a green account month on month.
There are 3 key areas of life that can have a positive or negative effect on your trading result in any given month; health, relationships, career. These areas affect our emotional states or so we think! However, if you were to read mind body research you will learn that it is actually your emotion that arise first and the outside condition after! Now this is a challenging concept to understand and admittedly more challenging to shift. Therefore, let us start with things which we can shift and have more control over.
Health is the most important area of life that we all need to manage. Interestingly we pay most attention to health when we are sick. Even worst some people still ignore the calling of their body even when they get initial calling to stop and pay attention. Sickness is your body’s way of telling you to pay attention to what you want.
I can still tell you that if I am not well the trading definitely suffers. I recently had cough and cold (which I hardly ever get) and I ignored my own rule not to trade while sick and lost a few trades in a row. Hence the need for this reminder for all of you. So let us see psychologically what happens and why it is affecting the trading result when the signals generated are still the same as if they were when I was in perfect health?
- Sickness is your body’s way to tell you that pay attention to it.
- Take time out and listen and tune into your body.
- Write out a list of foods that you have been injecting in your body and pay close attention to what you are injecting into your body.
- Please be hydrated when you are trading. A proper hydration ensures that you are grounded. Our brains depend on proper hydration to function optimally. Brain cells require a delicate balance between water and various elements to operate, and when you lose too much water, that balance is disrupted. Your brain cells lose efficiency. There is numerous research published on the negative effects of dehydration on optimal brain function. Always keep a glass of water next to your trading station and keep hydrated.
- A good ritual will be to have half a glass of water before placing a trade (this will give you that ‘re-assess’ the trade time too!)
It is a popular belief that if you are not happy in your intimate relationships you are not happy. This also applies to if you are going through a tense period in your life you turn to your support network. People have also experienced that arguments create a disharmony within themselves which create lapse in judgement when making critical decisions. Emotions take over decisions that need to be made based on given black n white rules. Therefore, when feeling emotional it is advisable to turn off your pc and read a book.
Some small changes to consider:
- Keep a diary for 1 week and note how you communicated with your partner.
- Did you make any personal time for them or was it all about the daily mundane stuff!
- How did you show your appreciation to your partner and or your close relationships?
- How do you compliment them?
- How do you make people feel special?
- How can you share your trading experiences together with your family and involve them too in your exciting journey!
- A family that plays together stays together! Find more play time…
Now this is a big one. I particular want you to pay special attention to your busy hectic weeks and how do those times affect your trading both positively or negatively. Here it is an individual experience. Some people thrive under pressure and others feel even more stressed and make silly amateur mistakes in taking up trades. Since it is not a set formula I suggest you measure yourself and be your own coach.
Just because you have a busy patch at work doesn’t mean that you are to be distracted in your trading. It depends on the individual. Assess yourself week by week and if you observe your reactions and decision making strategies around stressful periods. Slowly but surely you will work out a way around it.
Some suggestions to consider for improving your performance:
- Do some daily exercise to de-stress
- Yoga or Tai-Chi helps or a simple walk around the block is pretty relaxing.
- Take appropriate relaxation time after work and before starting to trade.
- Trade only for 1-hour max when trading after work. If you have more time use it up for reading, researching and getting upto speed with the Daily/ weekly charts. Short time frames are better traded when you are at your optimal mental, physical level.
- In some cases of our traders who work full time I have found that they find themselves fresh in the morning and trade Daily charts with much ease and higher confidence.
All in all I wanted to bring your attention to the interconnection between all areas of our lives and how one affects another. You may have noticed that success has momentum. So if you are on a roll then carry on, if you are having some trading challenges then take a break and focus on improving one area of your life at a time and you will see it will have a positive ripple effect into all areas of your life including improvement in your trading results.
Have a wonderful month ahead and remember to play hard while you work smart!
To your prosperity
Psychology of Trading Specialist
Discover financial freedom and learn to trade Foreign Exchange with a global award winning educator. Register for a FREE workshop today!