Get busy!
As I’ve been working with traders over the year’s one of the major obstacles to success is the one that lies in all of us: Procrastination (and yes with a capital P). We all have it. It’s actually part of being human. What I’m going to discuss is how to overcome it through something so simple that anyone can do it. It’s called accountability. And you are the one that’s going to hold yourself to it.
The very first thing you need to do is answer the following question: What type of trader do you want to become? No, I’m not asking whether or not you play bullish or bearish strategies, what kinds of options plays you prefer or even if you are going to be a swing or position trader. The question could be simplified down to the following: Do you want to be a winner in the markets or another one of the lemmings?
Winning traders work for their success. They keep good records and they develop a system that makes sense and works for them. Lemmings follow the crowd and end up like the rest. Their winning and losing is determined by the market and not their own actions. Don’t become a lemming. Be a winner.
You see, it’s important that you understand the next sentence. Winning trading doesn’t happen without work. Anything in life worth doing needs to be done well. Including your trading business. You need to think of it that way. Trading is a business. A business where making money is and should be the bottom line.
This doesn’t mean that you have to trade all day long and have it take over your life. In my experience, winning trading can be accomplished through a short time each day. Think of it like your workout routine. To stay in shape you don’t need to be at the gym from sun up to sundown. You simply need to workout and do it on a regular basis. It’s the same with trading.
Don’t get me wrong, I love the markets. I have a blast with them. I love the give and take between bulls and bears. I could watch traders argue over direction for hours. It’s a lot of fun. But the fun should be a bonus. Fun is something extra that can’t get in the way of our primary focus: Money. As Michael Douglas said is the movie Wall Street “greed is good.” To make money in the market you need to keep your focus.
I’ve been saying for as long as people will listen that trading is mostly common sense. Always trade ideas and strategies that make sense to you. But even before success and failure can be discussed through charting, fundamentals and trading systems many traders fail to take their very first step correctly.
The first step to success is to commit to a regular schedule and keep it. If you don’t already have one, go out and buy an appointment book. It can be very small and basic as long as it’s something where you write down anything that you have scheduled. You have to make an appointment with your trading.
My suggestion is this: set aside 30 minutes to 1 hour a day that you schedule in the time to trade. It is much easier to do this if you schedule this at the same time each day. Many new traders try to do everything at night. After the kids have gone to bed and the house is quiet. It can be a great time if you can make it work, but in my experience it doesn’t work as planned. Family dinner, your favorite TV show, simply being tired from a long day…..these are just a few of the things that can and will get in your way.
I’ve found that morning is the best time to schedule your trading. There are many reasons. In the US, either before or as the stock markets are opening, the Asian markets have closed for the night, the European markets are getting ready to close. The collective trading community has the ability to react to anything that has transpired. Also, government reports on the economy are almost all released in the morning before 10:00 AM. Simply put, there’s a lot more action in the stock market and a lot more news to consider in the morning.
Whatever time of day you decide on, you need to commit to this schedule. It can’t be something you break. Lemmings break appointments, make excuses and have good intentions. Winners just go out and work hard for their success. Remember, you are not a lemming. You are a winner.
During that time each day you need to focus. Don’t waste time watching trading shows on TV or casually flipping through a newspapers finance section. Get the news that’s important, do any upkeep on the trades your in and place your new trades. Studying, playing with your software, even research should not be done at this time. Stay focused and run your business.
If you can commit to and keep a regular appointment with your trading you have taken the first step towards success in the markets. Experience, education and brains are all important to becoming the master trader. But to get there you need to start with a professional’s attitude.
When I was a kid my dad made me work. He was trying to teach me the lesson all fathers should. That good work ethic is an essential component to accomplishment. He was constantly saying…”I don’t expect you to work fast, just stay busy.” That advice has been embedded in my mind and that’s what I advise to all traders. Stay unemotional, be professional, businesslike, consistent and most of all just stay busy.
