I thought i would write up the article on a weekend as it is on a topic which everyone is supposed to be doing over the weekend i.e. Relax !! This might seem a very trivial and boring topic to most but as everyone knows, more than the charts, the technical stuff etc. , it is the trading psychology that matters. The mind is the one that matters during trading. So it is very important to have the mind well rested and ready.
I have seen many traders and have experienced it first hand as well that unless your mind is free and well rested, you simply cannot make the right trading decisions. Traders should not be like hackers where they sit in small , dim lit rooms trading 16-18 hrs a day, having their food at the computer table, munching on snacks, colas, juice, all at their computer table. We have to understand that there is life beyond trading. We trade and we earn money to enjoy life. Not only do we need to enjoy life, we need to use trading and the money earned from that to make life enjoyable for people around us like our friends, family etc. So in such a case, what is the point in spending 16-18 hrs a day at the computer table, talking very less to friends and family, not spending enough time with them and making them unhappy and dissatisfied ? If the people around you are not happy, what is the point in earning thousands of dollars per week through trading ?
So, you need to relax, you need to have a social life and you need to spend time for yourself and also for friends and family. I see traders spending a large part of their weekend as well trying to read more and more, come up with strategies, studying charts for several hours etc.
The idea is to keep things simple. Trading is simple. We are the ones who make it complicated. Once you have understood price action and how and why price moves, then there is no need to keep working on systems, keep studying charts all the time. Price action is the only thing that works always. So, if you have understood price action and if you have imbibed it and this, along with good money management, along with a clear mind, should ensure that you trade well and earn well.
And be clear in your mind about your targets. Be clear on how much you want to earn per day and where you want to be six or 12 mnths down the line. Unless you have a target, you tend to over trade and you lose control. The logic is simple, the more trades you make, the more likely that you are going to make mistakes. As i keep repeating , 50 pips a day on a consistent basis should give you a very good income within a year even if you start with just $500. This translates to 250 pips a week for swing traders. For scalpers, 50 pips can be easily achieved with just 2 trades a day and within 2-3 hrs. For swing traders, 250 pips a week can be made in 2-3 trades in a week. That does not stop you from trading more or making more but what i am trying to say is that dont force yourself to trade more and more giving up most of your free time. Take trades as they come. Dont go in search of trades. Good trades will jump our of the charts for you. You need not go in search of trades with a lens. If you have good small targets and learn to relax and condition your mind, you will trade in a relaxed manner and without pressure and this is a sure way to success…
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Winner’s Edge Trading, as seen on: