Have you ever wondered why after a good trading day, perhaps even a record day, you end up losing even more the following day? Or why after a green streak of trading you’ve hit your max loss, blown up your account or reversed into a red streak?
Well, welcome to being a human being. As humans we have limits it’s only part of our nature. These limits can be found to be mental limits of physical limits.
Stress and trading
I was recently chatting with a trader about the importance of resting and feeling fresh when you begin your trading day. He informed me of his previous week and how he was content with how profitable it was and how his executions were perfect. His success did not come from a magical system or strategy, but instead, he stated that all he did was take some days away from the screens. When he back he was stress-free and at complete ease and because of this he was able to execute diligently. The overall summary is that by trading less he was able to end each trading day with a much larger PNL than usual.
Tying back to our title here I can conclude that yes, less is more. Being a trader requires patience which means waiting for your pattern appear, don’t hit your hotkeys with anticipation. Every time you enter a trade you should have complete confidence. So the recipe here for success is patience + rest = success.
Everyone in the “trading world” can agree that stress is an expectation when wanting to become a trader.
The stress of not achieving your goals as a trader can eventually build up to a point that mentally and physically you find this career path unsustainable. How can you avoid reaching the boiling point? It’s actually quite simple, your due diligence as a trader is to observe the market not to gamble like you are in a casino. Be an observer and wait for your setups to take executions. If you stray away from having a patient behavior than you need to take time off to recharge. A sniper needs to have rested eyes, a clear mind, a good environment, and the confidence to pull the trigger at the right moment. Shooting into mid air will likely result in missing their target, so create good behaviors like a sniper. Be patient, be confident, stay charged and the success will come.