While my crystal ball is in the shop, and I am unable to tell you exactly what will happen in the co...
Five Tips For Dealing With The Trading Blues
04/14/2008 12:00 am EST
Can't seem to pick a winner? Tired of the sideways market? The trading blues are quick to set in and ruin your future trades. Depending on the trading style, you may be more or less prone to the trading blues. Day trading and scalping are very quick, nerve-wracking professions and can be easily impacted by a series of losses.
However, there are five ways in which you can improve your trading environment, allowing you to overcome your trading blues.
1. Skill-Building Activities: Taking a look back to the basics of your trading plan blueprints can help you overcome the trading blues. Skill-building activities such as drawing trend lines on short-term movements or analyzing candlestick patterns, can help you feel comfortable again with your own trading style. Go back through the step-by-step instructions of your trading plan and fine tune any possible variables in your trading plan. These activities will all help you avoid losses.
2. Trading Seminars: Listen to what others have to say about the markets. Find what will work best for you, and incorporate the trading philosophy into a trading plan planner. Trading seminars allow a different perspective on the same market, letting you see the market from someone else's perspective.
3. Take Some Time-Off: Take some time off from the computer and rest your mind. Day trading is very tiresome, both mentally and physically. A brief escape from the constant flux of the markets will give you some time to relax and rewind. Consistent profits are best achieved after a restful break from the drama of the market.
4. Establish an Emergency Fund: Even professional traders have their bad streaks. The key is to ride out each bad period for times of prosperity. Establishing an emergency fund for day-to-day expenses can take the worry out of living off your trading capital. The stress of knowing you have to deliver results to make money can be devastating to your trading accounts.
5. Have a Complete Trading Plan: A complete trading plan should take into account the worst of times. You should be prepared for anything, including steps for trading in bear markets and what to do in case of a large draw down. A complete trading plan should also include ways to re-up your brokerage account after large losses. A trading plan planner will help set up a plan for even the worst scenarios. Anything short of nuclear war should be included in a complete trading plan.
About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.
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