To succeed in any endeavor, the key is to have the right mindset—particularly when trading in the financial markets. Trading can be taxing on various levels, and if multiple losses occur, it can be hard to recover mentally from such a disappointing slump. What’s more, monitoring trades on multiple screens continuously across different time-zones takes time and energy, so it’s essential to get in the zone and keep your enthusiasm high to avoid making silly mistakes.
With this in mind, here are some suggestions to improve your trading mood, no matter what the circumstances are.
Eat healthy and sleep well
An exhausted body and a tired mind will not get you anywhere. It is absolutely essential for you to take care of your health. Do not skip meals and remember to take out time to exercise daily. Exercising releases endorphins into the body, which are essential to combat stress, anxiety and depression. As traders often suffer from issues like cardiovascular ailments, eyesight problems and musculoskeletal issues, it’s also wise to go for a routine check-up every now and then, and know where to draw the line every day.
Read informative books and publications
As well as watching screens and analyzing trades, it’s a good idea to step back and do a bit of wider reading. There are plenty of success stories out there for you to learn and draw inspiration from. Reading good books will not only take your mind off live trading for some time (everyone needs a break) but will also provide you with plenty of useful information that you can use in your trades. Learn how other traders keep their emotions in check, for example, and realize that you are not alone in facing some of the roadblocks that you have encountered.
Do in-depth market research
A successful and confident trader always stays abreast of important happenings around the world. These events might not only pertain to trading but to other sectors as well. Remember, every event in the world can have repercussions on the global financial markets, so keep an eye on breaking news and be sure to know important dates related to economic releases, especially for the U.S., Europe and Asian markets. When you are aware of market conditions, you will find it easier to modify your trades.
Learn new trading strategies
It is always worthwhile to review all your past strategies, even if you’ve enjoyed a run of successful trades. If you find that the existing strategies are not providing you the best results, explore new ones. Go back to studying technical indicators (new and old), conducting backtests and forward tests, in order to make new observations in different market scenarios. Analyze new trading charts and figure out bullish or bearish reasons to place a trade. If you have access to a demo trading account, use it for these purposes. Going back to basics will allow you to sync with the current market situation. You will identify things that were lagging or need to be replaced to make your strategies more profitable than before.
To conclude, always take time off when it gets overwhelming. Return the next day with a fresh perspective and renewed energy.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
The impact of alternative financing on entrepreneurship
One of the biggest obstacles for entrepreneurs is raising their much-needed capital to launch their business. Case in point: 29...
The secrets of trading with fundamentals
Technical analysis often trumps a fundamental one when it comes to scrutinizing the financial markets. Forex traders often use technical...
Currency wars: Stock markets plunge, gold soars
Bond yields fall and the yield curve inverts more. History is littered with trade wars and currency wars. But negative...
Neo banking disrupts fintech
Neo banking is a concept wherein banks operate solely online or through apps. They don't have brick and mortar branches...
CEO Spotlight: John Fielding, Toronto entrepreneur, founder of Array Marketing
CEO John Fielding attributes his success to the people who surround him. In 1981, John and his brother Bill founded...