Don't Be a Cocky Trader

It has been a crazy couple of years if you have not noticed. The world we live in is not the same anymore nor will it ever be for better or for worse. More than ever, we as humans need to take a break and try to get away and get our minds off stressful aspects of our lives, which includes options trading.

A Trading Hiatus Can Help

Taking a break can be one of the best things that you can ever do to help improve your trading. Writing a trading plan will always be the most important in my eyes, but taking a break from time to time is up there as well. The stress that can be caused from trading can really affect other aspects of your life that do not involve trading. I remember having several awful days of trading when I was still undisciplined, and it really caused a rift in some of my relationships because I carried the negative attitude into my personal life. That is not good for anyone!

Return Your Trading Focus

Here is the part that should really make sense. Taking a break from options for a day or more can really clear your head and return your focus. This is especially true if you are suffering from undisciplined trading, which generally leads to losses. It is so hard to dig yourself out and refocus when you do not take a break and step away from the computer screen. It allows you to reset yourself and reflect on what you could have done better without worrying about current market conditions or positions.

Don’t Be a Cocky Trader

Most traders will only take a break after suffering losses, but it is almost as beneficial to do so when doing well too. When trading and profiting, there is a natural inclination to become overconfident. This can lead to complacency and many times to eventual losses. But stepping away when doing well allows traders to reflect and acknowledge what has worked. It gives the trader a chance to not get too cocky with recent successes.

Everyone Needs a Break

Whether or not you think so, you need a break from trading. It does not matter if you are doing well or not so well. It will help you in either case more than you know. So, promise me you will try it. You will not regret it!

John Kmiecik, Market Taker Mentoring

Trader Education