Forex trading requires a lot of dedication and commitment, let’s not hide that truth. Most new traders start trading with hopes that they will become a professional trader who one day can trade for a living. But for this to happen, effort has to be put in by the trader, and investment in quality education is a must.
Trading as a career is very different, as compared to most 9 to 5 jobs out there. Working hours are undefined, depending on what markets you choose to trade in, and, if unmanaged, can become detrimental to your lifestyle. To help you on your way, we have therefore put together this guide with some important tips about lifestyle changes that we think can improve the chances of you achieving forex trading success!
Since forex markets are open 24 hours a day from Monday morning in Australia to Friday afternoon in the US, its round-the-clock action makes it impossible to watch the market continuously. Ambitious traders who are just starting out might think that it is possible, but it is extremely draining. These traders will usually burn out quickly, and many will end up abandoning trading altogether.
Managing trading hours is important. Decide on a few markets to focus on based on your time zone and trading preferences. Stick to your plan! Some traders also prefer to do day-trading only, meaning they close all open positions at the end of each trading day.
This way, they will not need to worry about what goes on in the market when they instead should be spending time with family and friends on evenings and weekends. Also keep in mind that tracking too many markets can dilute the effectiveness of your trading strategy, especially if it has been tested on, and tailored to, one particular market only.
Trading requires good decision-making skills. When you trade, you are both the boss and the customer, so you are accountable for everything that happens – be it a loss or a win. Therefore, the responsibility to carry is heavy, and most of the time when losses are made you have to live with the fact that it was your mistake.
Emotions have to be well managed. Being disheartened because of a loss is normal, but getting too upset about it is unhealthy and affects future trades. It is important not to be too emotionally invested in trades because it will affect your otherwise rational decision-making abilities. Thus, a healthy mindset is needed, which can be built from a healthy lifestyle – which includes taking good care of your mental health.
Health is important regardless of your career choice. But in trading, it is especially important. Time should always be set aside for regular exercise for traders. This obviously requires some time management skills, but remember that with a fixed schedule to follow every day, chances are you will get much more done anyway than if you had no schedule to follow.
As a trader, exercise can help you reduce the possibility of anxiety and depression, and help build good mental health. It also gives your eyes a break and reduces stress.
Constantly watching over markets can lead to a very sedentary lifestyle, which can lead to a whole list of health problems if regular exercise is not part of your life. Physical strain is also a threat to your productivity as a trader, and it is therefore important to invest in things like a good desk and chair that keeps your posture the way it should be.
Eating healthy also contributes to good health. Good time management will allow for meals to be eaten on time, and helps to boost your results in trading. This will build a stronger immune system and reduce the possibility of falling ill. Taking fewer sick days allows for more trading opportunities, and eventually higher profits as a result.
Don’t be overconfident. It is important to stick to good values and try your best to remain humble. Quite often, traders who make multiple winning trades in a row will become over-confident and over-optimistic about the markets. This always leads to bad trading decisions and ultimately losses in the market.
Being humble also helps you learn more. Remember that markets will always be somewhat unpredictable, no matter how much we study it. A lot of time needs to be invested in reading up on market studies and analytical techniques. Even as you become better at trading, there is always something to read about – learning is a continuous process that never stops.
As you have probably understood by now, lifestyle choices play a crucial part in your trading career. Being unhealthy in terms of both body and mind impairs your abilities to make good decisions in trading, and more often than not leads to losses. On the other hand, being in good shape helps you to devote energy towards fruitful activities that makes you more positive, which in turn will benefit your learning, your decision-making, and your trading.