Do You Lose Sleep Over Your Trading?

July 25, 2008 by admin · 1 Comment
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I know I used to.

When I was in my first year of trading, I lost tons of sleep.

I was so strung out over my trades, some nights I didn’t get
to sleep for hours after going to bed.  I’d lay there stressing out
over whether or not I was going to lose money on the positions
I was in.

Sometimes, I’d be fretting over the money I just lost and feeling
all kinds of pressure to make it back because I’d set a goal for
myself and every loss only made it further away, more to make
up.

The stress and the sleepless nights continued for months, and
it got to where it was interfering with my entire life.

At work, I had a hard time concentrating on my work and getting
it done on time because I was so preoccupied with how my
trading was going.

At home, I couldn’t relax and enjoy time with my wife or kids.

But then I took a short break and decided to concentrate on the
one thing that I knew was at the root of all my woes.  There was
one thing that was my problem in my trading.

When I resumed trading, I had an entirely different mental
approach and it made all the difference in the world.

I could trade when I saw an opportunity, and I could easily stay
stay on the sidelines when that was the thing to do.

I was able to concentrate when I was at work.

I was able to relax when it was time to relax, and best of all…

I could get to sleep when I went to bed and actually sleep well.

The difference was nothing short of miraculous.

How about you?

Do you sometimes go to bed only to toss and turn, worrying
about your trading?

Does the way your trading is going interfere with the rest of
your life?

Would you like to change that?

If you’d like to experience a transformation like I did, I can
show you how to make it happen.

If you’ve got 1 hour a week, I can make it happen for you.

Click here to begin…


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Simple Decision-Making Rule for Traders

July 3, 2008 by admin · 1 Comment
Filed under: Uncategorized 

Trading (and life) is all about decisions.

One of the keys to avoiding regretted decisions is to have a rule of thumb in hand for any prospective decisions that you encounter.

Now investing in your trading business is a necessary part of being a trader, and you really need to make sure that you invest wisely.

We’ve all bought something that at a later time wished we hadn’t, for example an expensive piece of software or a fancy trading system.

Here is a rule of thumb that you can use when presented with a tempting offer:

If the price is greater than the amount you could comfortably lose on ONE trade, sticking with your risk management rules, then you really need to weigh both the prospective gain (in dollars) from getting it along with the LIKELIHOOD that you’ll realize that gain.

If it costs substantially more than what you’d risk on a trade, consider the matter thoroughly before acting on the impulse to buy it.

Here’s an example to illustrate.

Say you’re looking at a piece of software that costs $1,000 and your available funds are $10,000. That’s 10% of your working capital.

If your risk management rules state that your maximum risk is 5% max, then that’s $500. This software is twice that.

Now ask yourself, “Is this software REALLY going to solve my issues, my real NEEDS at this time?” Have you already mastered your current software and outgrown it, where it just won’t do what you NEED to make money?

If you HAVE mastered your current software and it IS holding you back from improving your bottom line, then is this one that you’re considering the BEST solution available, both in terms of money and meeting what you NEED to accomplish what you want?

Or if you HAVEN’T, does this prospective one just sound great, and part of you is hoping that you’ll do with the new one what you didn’t take the time to do with your current one?

Maybe subconsciously you’re hoping that you can just skip the uncomfortable ‘work’ of developing proficiency with this new software?

If the answer is “Yes” to these last two questions, then perhaps you should pass on the purchase, and focus on what you REALLY should be doing to make your trading more profitable.

On the flip side of this coin.

If the investment you are looking at IS within your risk management rules and you really feel that it WILL have a positive return for you, then simply make sure that you take action to ensure that you do indeed get the benefit from it.

Just like with any trade trade, if it doesn’t fit within your rules, perhaps you should pass. There will be another opportunity.

As the saying goes, “There’s another bus right around the corner.” If it DOES fit within your rules and moves you closer to your objectives, act decisively and realize the returns.

Your decisions are yours to make of course, and I hope this rule of thumb saves you some stress and wasted time and money. It’s not set in stone, just a rule of thumb for handy reference that I’ve used along the way.

Cheers

Brian

P.S. Most of the decisions in trading are pretty easy once you reach the professional level. Get the right trading training and take your trading to that level in as little as just six months. Go to http://insideouttrading.com/pit/


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