When traders start out, it's completely overwhelming the
amount of things to learn and suck in. The simple to the
most complex: the computer, the trading software, the
markets, the strategies, indicators, psychology, capital,
time. On top of that, traders have to deal with their
family and work. Investing is just not about buy, sell and
hold but the burden and challenge of dealing with
everything and everyone. All this brings major stress that
will affect trading.
Trading is a very stressful work but not balancing them can
be counter productive. An athlete cannot train continuously
12 hours a day. He needs time away from training to
concentrate his mind on other activities in order to stay
relaxed. A new trader is so obsessed with trading that
sometimes he can go relentlessly day after day with long
hours that eventually he burns himself and not knowing it.
Due to the fact that trading involves money, many traders
want to make as much money as much as possible and as
quickly as possible. This may involve spending as much time
as possible to learn and master the skills. He may spend
long days for months if not years, weekends included,
disregarding family, work, or social life. This can be
hazardous to one's physical and mental health. When the
other parts of life are left uncared for, eventually the
trader will begin suffering by making losses. He may not
notice it in the beginning but little by little, the stress
from outside of trading will start setting in. Before he
knows it, his performance suffers, productivity and
profitability reduces. Successful trading requires healthy
and balanced mind and body. Has anyone ever seen a drunken
successful gambler in Las Vegas?
So what how does one gain and manage healthy mind and body?
Many successful and experienced traders have come to
realize that trading is a marathon and not a sprint. If it
is a sprint, then he can try to make as much as possible
thinking he'll move on to something else. Usually this is
the option of the new traders thinking in short term as he
overtrades with high leverage. This is usually the path to
blowing out the account. But experienced traders want to
stick around to trade until he retires or until his dying
breath. So a marathon requires conservation of energy by
keeping a steady pace, one step at a time. Little by
little, as he gets more experience, he can step up the pace
when he gets accustomed to the stress level.
There are many ways to keep balance in life and trading.
Many devote small hours each day to learning the skills
without intruding into other areas of life. In addition, he
may spend weekends devoting to it when the week days
impeded him from dedicating time to it.
In day trading, the trader may meditate, pray, or use other
visualization or relaxation techniques to prepare for the
full day of relentless stress. This is to erase the mind
from other outside factors, pleasant as well as unpleasant.
As for physical activity, the trader does exercises such as
walking, jogging, weight-lifting, team or individual sports
to keep the body fit. Not only will physical exercise
maintain healthy body, the mind tends to relax and
concentrate on things other than trading. Too much of a
good thing can be bad. Most workaholics end up with some
kind of stress-related syndrome or illness that leads to
early retirement or heart condition as they get older,
shortening their life span. Those who pace themselves carry
a happier and healthier and more productive life than those
who don't.
In trading, with money at stake, this is especially
important. Every ounce of emotional and mental condition
must be preserved and cared for. If not, the cost can be
dear.
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Larry Swing is the President of the popular day and swing
trading site http://www.mrswing.com a place where you can
find free daily articles and videos covering education,
market analysis and picks from Larry and other well known
traders in the industry.
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