This needs your attention, Evolvers…
When you’ve tried and tried again to improve your trading, but can’t seem to get your groove back … it’s probably time to step away from the market for a short while.
Some traders think they need to make plays every day, concerned they’ll fall behind if they sit on the sidelines.
But I’m here today to bust this myth. There’s nothing wrong with taking a break.
REMEMBER: Trading opportunities are like trains — there’s always another one coming!
In fact, I’m planning on taking a short trading vacation…
After half a dozen losing trades in a row, I need to go back to the drawing board. NOW!
With that in mind, keep reading and I’ll show you how to disconnect from the market effectively (and why you might improve your performance by doing so)…
Sometimes, It’s Best to Be on the Sidelines
I know when it’s time to get away from my screens for a bit and mentally reset.
But less-experienced traders may have trouble disconnecting. I know that it was hard for me to rip myself away from my charts when I was first starting.
You need to hear this…
There are some days when no trade = best trade!
I would’ve been better off not trading the entire last six weeks!
My recent run of trades has been an absolute nightmare. I’ve allowed poor timing and execution to snowball into a handful of losing plays.
To make matters worse, I’m a perfectionist…
I’m incredibly hard on myself when I’m not trading well, which can compound my emotions into an even more disastrous mindset.
Now, I’m forced to ask myself a tough question … Do I want to keep losing money?
Of course, the answer is NO!
That’s why I’m planning on taking a short break from options trading to re-evaluate my strategy and reset my trading psychology.
Bottom line: When your plays aren’t going your way … Don’t be afraid to step away from trading completely.
If you’re losing money right now, take a short break from trading…
Mentally recharge. Turn off your screens. Go outside and get some fresh air!
Better yet — take a vacation. There’s something especially refreshing about changing your physical surroundings, even if only for a few days.
All in all, anything you can do to switch up your mental and physical surroundings during periods of trading stress can potentially help you to exit your funk.
How to Keep Evolving When You’re Not Actively Trading
There’s no reason to feel like you’re slacking off during your trading vacation.
(Unless, of course, you are slacking off…)
When you’re not actively trading, it’s easier to focus on STUDYING!
WARNING: If you aren’t studying hard, there’s another trader out there who is — and that trader’s ready to beat you.
With that in mind, I’m taking this time to brush up on parts of my trading that I think need improvement.
I can’t tell you exactly how you should approach your studying, as this varies from student to student.
But here are a few tasks I like to take on when I’m sitting on the sidelines:
- Mark up your charts — It can be difficult to find time to do technical analysis during market hours. When I have some time away from trading, I mark my charts up with trendlines, key levels, and important technical indicators.
- Go through your trading journal — If you’re taking a break due to poor performance, one of the best things you can do is to go through your recent trades. Identify your mistakes, determine your weaknesses, and create a new game plan that addresses your concerns.
- Build a new watchlist — When your trades are going against you, it might be because you’re watching the wrong charts. Take some time on your break to scan the market for intriguing chart setups you haven’t been tracking. Don’t be overwhelmed by the idea of building a new watchlist … it might be just what you need to reset your strategy!
- Go back to paper trading — If you’re not performing your best right now, consider going back to paper trading. Simulated trading allows you to test out new strategies, patterns, and setups without risking a dime. This is perfect when you’re trying to create a new game plan amid a string of bad trades.
I want you to start thinking of yourself as a boxer…
If you’re always throwing punches that miss, you’re wasting precious energy. And you won’t have enough juice left when the ideal opportunity to strike presents itself…
The same goes for traders. A ton of brainpower goes into forming and executing every single play. And if your setups keep failing, it can tire you out.
All this to say, don’t feel bad about stepping away from the market. Use your off time wisely.
Then, come back better than ever.