Too Busy To Trade
In this article we will look at a scenario which takes place frequently with a large number of traders. Does anything in this post remind you of yourself?
You are sticking to your trading rules and the plan you put in place for building an account. You suddenly find yourself with a position that is deep in drawdown. While this is happening you notice you have not got involved in the strong breakout trade from the chart you looked at earlier in the day, this trade would have made you a fortune and eclipsed any previous losses…this makes you angry…
So you have followed your rules and you now feel like this has cost you money. You become agitated. You question your trading strategy and decide to now follow the breakout trading approach as mentioned previously. “This must be the best way to trade” you say to yourself. Does this sound familiar?
Moving From One Trading System To Another
Maybe you tell yourself that your trading rules, technical approach, or whatever else can’t be the best way forward. “This won’t happen next time” you say.
Perhaps you are right and your approach isn’t ideal for you and it does need to be changed; however, once you have identified an edge the equity curve fluctuations should not be a shock and one trade does not a system make. Is it not more likely that your trading psychology, and approach to the trading day, needs to be worked on if you have already proven to yourself that you have an edge? If you don’t have a proven edge then you are right to question your system and you should not be trading live anyway…
Are You Prepared For The Trading day?
Do you wake up in the morning and run through a series of positive affirmations? Do you meditate, exercise or whatever it is that puts you in the right frame of mind to trade like a pro? Or maybe you are too busy to trade?
None of use will ever catch every profitable trade. Once an edge has been identified we should look to only take trades which fit our pre-determined criteria, our trade plan should describe trades we should enter. Some trades will be winners and others losers over a large enough sample of time if the edge is there. Despite what some system sellers say there is no “guaranteed profitable forex trading system”.
Let’s go back and ask the question again. Are you too busy to trade? This is not the same as asking are you too busy to enter a trade…
You could say that you are too busy to trade if you do not have the time to spend preparing your mind for the task at hand.
“Anticipate the difficult by managing the easy”
Be Honest With Yourself About The Time You Have To Spend On Trading
If you are having difficulty sticking to a trading plan then it could be down to your approach and routine (or lack thereof).
Take a look at your schedule and be honest with yourself. Do you have time to prepare for the trading day? Are you comfortable that you will act in your best interest if you do not prepare for the trading day?
Winning traders are constantly taking small losses and getting out of the market when it goes against them, they don’t just blindly hope the market will turn around.
If you are struggling to stick to your trading plan and constantly look for a new system, or indicator, then maybe you need to think about your approach and attitude towards trading and not just your system.
Do you document the reasoning and rationale behind your trades?
The winners and the losers?
Do you periodically review the output?
If not maybe you need to re-evaluate your approach; if you are just too busy to take a disciplined approach then perhaps you have no time to trade. You will be hard pressed to find an old, consistently profitable, trader who is not disciplined.
If you are honest with yourself and decide you do not have the time to commit to trading then there are other avenues which can be investigated. Zulutrade and similar platforms allow traders to mirror other successful traders.
Alternatively it may be a case of looking to trade the longer term charts. Do your own due diligence and look into what is going to work for you. Most importantly be honest with yourself and make sure you are acting in your best interest and not selling yourself short.