Never Allow Your Personal Life To Impact Your Trading Life
This by far is one of the most important things to avoid in one’s trading career – especially if you are a novice just starting out. Quite a lot of people online have various perspectives towards trading the financial markets; some view it as gambling and risky (which are the uneducated). However for the rest of us who are educated and successful, we all know that we have to be in the right frame of mind mentally in order to become a long-term successful trader – most crucially, in order to avoid attaching emotions to your trades. I cannot stress enough on how vital it is to put all emotions and personal life issues aside when approaching the markets – as it has detrimental subconscious impacts on your trading in the short and long term.
Focus On Following the Rules, Not The Money!!
As weird as this subtitle appears to be, it is the truth. The financial markets Is not a casino, we have endless technical information that reinforces various asset classes on the probability on the future price of that asset class. Those that open up a brokerage accounts and enter into this field with the predominant mindset of ‘how can I earn more money’ are usually the ones that end up over-risking and making money the wrong way (which is worse than losing money initially) or over-risking without no market knowledge/edge and blowing their accounts as a result. The reason why this happens is because they are chasing the money, not following what works, and do not have a predominant mentality of studying the markets and actually assessing patterns – most crucially they are oblivious to how key market participants react during normal trading days and trading days that consist of high impact news. As we reiterated on our previous article ‘Risk Management’ you should all treat your trading account similar to your own business, because it is your business. Would you make irrational business decisions in times of temporary personal life issues? Off course not, so what makes you think trading decisions are any different?
Trading is course of study – just like life is. You may adopt a skill that is skin-tight and provides you with say 1-2% a day – however you should always be willing to learn more – to strengthen your teach ability index. The main reason why this topic is brought up in this article is because it links to ‘Personal Life’ issues.
Harry may be in debt, and has no choice but to make funds by a certain time. Kate may need to raise capital – and has a burning desire to do so, however approaches the market throwing away all the rules – predominantly THINKING about the capital that needs to be made and excluding the necessary analysis which is the prerequisite for each trade.
Your trading life and your personal life are two separate worlds – never intertwine the two.
Be a Master of Yourself.
The solution for segregating your trading and personal life is becoming a master of yourself.
Not just a master of trading the financial markets – but a master of yourself. Never allow outside noise impact your trading, never allow others people’s opinions impact your trading, never allow one or two losses impact your emotions and always remember the profits that you made from the same trading set up that you exploit day-in day-out.
Being a master is being in control. When you have an edge on the financial markets it actually diminishes what can actually unfavorably impact your trading as your confidence, skillset and experiences outweighs all of the personal life issues that one may be temporarily dealing with. Being a master is very important also as it enables you to control how you react to things that come across as unfavorable and upsetting – and will not impact your mental state when Monday, European session approaches!
To those reading this article that is not yet on the level of mastering themselves and their mental attitudes when it comes to trading – I would advise those to ensure that they are in the right frame of mind before entering into the markets.
Take a break to re-charge, re-fresh and get your focus straight – because trading requires A LOT of focus. This does not mean that you should stay away from the markets; you can analyze the markets religiously each day without actually placing any trades. Remember in order to succeed in this field; you need to be awake, focused and diligent. Focusing on outside issues during trading time will not improve your trading – so it’s best to climb back into the right mental state before entering into the market or train your mind to focus on one thing at a time.