After you start tracking data about your trading performance and know the core variables in your trading process you begin to realize that the final part to being an outstanding trader has nothing to do with trading : The final part has all to do with you 🙂
Let us dive in.
Gaining Control Over The Trading Process
What do I mean by saying that to become an outstanding trader you must gain control of yourself?
What I am trying to get across is that the market is your opponent. You are the one who has to beat the market. To beat the market you have to be prepared to beat the market. So decide on how you need to prepare yourself to attack the market and do your preparation in advance before the market makes it’s moves.
Let me elaborate:
Rule # 1: You must not let the market catch you off-guard. The market is what you must extract money from. To extract money from the market you have to be prepared to the best of your abilities. You must anticipate the reactions of the market before the market makes it’s moves. If you are too late, you are left with no money even though you had the skills and knowledge to profit.
Rule # 2: If you do not profit with a winning trade, it does not matter that you knew the market would behave just as you thought. The essential core of trading process is to make money. If you do not make money from your trade ideas, you are not utilizing your full potential to make money from the markets (provided that you have the skills).
This brings me forward to the next topic which is that to profit from the market you need to be a step ahead of the market. Do not be reactive. Plan well in advance and you will not be late for your trades and will not miss out on profits that you deserve based on your knowledge and skills. Some traders use post-it stickies, others use tradingview, watchlists, notebooks and blogposts to plan their trades in advance.
After you have planed in advance about your trades you will need to execute your trades. In other words you will just have to attend and pull the trigger. Sometimes being in front of the right charts at the right time is as easy as waking up for an alarm clock. Other times, your personal daily life will conflict with precise execution of trades and your management of trades. This is the point at which you will have to make a decision about how you will manage your daily life together with trading.
Daily Life In Union With Trading
Rule #3 : Your trading must not interfere with your daily life, plans and your happiness. Secondly, your daily life, plans and unhappiness must not interfere with your trading. If there is friction between these two sides (daily life & trading) you will have a hard time with keeping your life stable and balanced which is what you ultimately desire. Keeping your daily life and yourself stable & balanced is a foundation for being in control of your own trading. The reason is simple: You cannot be in control of your own trading if you are not even in control of yourself and your life.
Now that we know that we need to balance daily life and trading, we want to manage them in the best way possible.
Rule # 4 : Your chosen optimal trading hours are for trading. Weekends are for anything that is not trading. Weekends are for such things as resting, relaxation, healing, family time, partying, fun, leisure, health, sports, yoga or any activities that you do not do during your trading hours. Preparation for the next week can be done on weekends although very often it can just be done on Friday and you will be done for the week!
The point of my advice above is not to create some exhausting strict framework for everything that you start to hate yourself for not doing everything perfectly.
My message to you is that make a clear distinction between your daily life and your trading life. Then, separate the two and make sure that these two do not collide with each other and are both done in the most efficient and optimal way. Finally, just take it easy and do not give yourselves a hard time, people! 🙂