OVER TRADING IS THE SECOND BIGGEST MISTAKE TRADERS
MAKE…Here’s how to overcome it…
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From my experience, time is the biggest issue that a lot of traders seem to battle with.
Lack of time, I should say! Or rather PERCEIVED LACK OF TIME!!!
Today I want to talk about TIME ( Watch the Video 14 mins )
Now here’s the thing, we tend to overestimate what we can achieve in a year, underestimate what we can achieve in five or 10 years.
And I think we also overestimate what we can achieve in a day, in a week.
I think it’s about being very specific about what you’re going to put your attention to and when you bring it down to actually trading, it’s important, to be realistic about how much time you going to put into your trading because very often majority of traders are in a situation where they are slave to trading.
Where trading controls them instead of the other the way around.
You need to make trading work for you.
It needs to fit to your agenda.
It needs to fit to your objectives.
And you need to find a strategy that works to your objectives, that fits around your objectives, that complies with what you need out of trading.
Does that make sense?
So the important thing here is about managing your time with trading.
If you don’t manage your time with trading, you’ll overtrade.
It’s that simple!
If you find yourself just sitting in front of a chart, you must walk away because that’s a drain on your time and it’s a drain on your energy and you’re allowing trading to control you instead of you controlling trading.
TIME is where it all starts.
So have specific amount of time that you’re going to put into trading each day and each week.
Think about it…. The more time you put into your trading – the less your time is worth – and the more EXPENSIVE your trading is….. TIME IS YOUR MOST VALUABLE ASSET!
So what time of day will you trade?
Be consistent with that.
Is it morning, lunch, and evening?
Is it two hours in the morning and then nothing more during the day?
Is it just in the evening or is it midday?
What time of the day is it going to be?
And put aside a set amount of time that you’re going to apply to it.
Otherwise, one, you’re not going to be consistent, two, you’re going to be subjugating yourself to the charts where they’re controlling you instead of you controlling your life.
And the other thing that’s going to do is lead to overtrading as well.
EVERY SINGLE TIME!
Hope trading as well.
And second guessing yourself because as much as possible, we want to make sure that when we trade, we’re 100% confident, certain.
And the more you give yourself time to sort of lurk in front of a chart, the less confident and certain you’re going to be.
The second thing is that each week plan what it is you’re going to do that week to gain more mastery in your trading as well.
So what would that will entail?
What can you do this week to make your trading even better than last week?
Because one of the things that most traders don’t do is they don’t review what worked, what didn’t work.
If you don’t review, you don’t know what to tweak.
So within the time that you allocate to your trading, so let’s say for me, it’s about 40 minutes a day.
Some guys, it might be an hour, it might be two hours, right?
Let’s say you trade an hour, you’re going to put aside an hour for your trading each day.
What are you going to do in that hour?
Be very clear about what you’re going to do in that hour.
If you put aside an hour and don’t DEFINE what it is you’re going to do in that hour, you’re going to find yourself filling that time with low priority actions around trading. Okay?
Which will lead you to over trading…
So what are the high priority actions you can take in that hour for your trading?
What is the highest impact?
Where are you going to get more bang for your time?
More impact for your time is very important concept. And needs to be applied to all areas of your life – not just trading!!
The more we fill our day, our week, our month, our year with high priority actions, the more we will achieve.
And this is why we so often, set a target to achieve for the day or the week or the month, something that’s completely and utterly unrealistic.
We overestimate what we can achieve in a day, a week or a month, but we underestimate what are we can achieve in a year.
So be realistic about what you can achieve in that day, in that month, in that year.
One of the ways in which you do that is to put high priority actions in place.
You start doing things and focusing on actions that are going to take you forward that are going to take you forward quicker, faster.
So you gained momentum.
So that hour that you’re putting into your trading, what are you going to do?
Don’t let it be filled with low priority actions.
Don’t let it be filled with just staring at charts, going back over charts or willing price to move in the direction that you would like it to move.
Okay? so don’t do that!!
Set aside a very specific set of tasks that you want to achieve in that hour.
Now it might be that you’re going through the charts, you’re assessing your charts for price action for your strategy.
You might be doing some reviewing of last week’s trades or from the other day.
Or it might be that you are looking at doing some back testing.
Whatever it is that you choose to do, make sure that – that is what you do and nothing else.
Don’t get distracted.
One of the things I tell my guys in the Tribe of Traders who trade POGO and BUGSY, is to make sure they know how long it take them to go through all the charts, to decide what it is they want to trade and to make that short and quick.
So on average, we take about 15, 20 minutes to go through all the charts and decide what it is we want to trade on that day.
That’s it. 15, 20 minutes done.
And if you want to put an hour into your trading every day, so 15, 20 minutes is going to watch list, what is the other 40 minutes or 45 minutes going to?
What are you going to do for the other 40, 45 minutes?
It might be some back testing, it might be some analysis in terms of past trades, what trades were missed.
Do some data analysis on your trade, on your past trades, like what are your successful currencies, instruments, time slots for trading and all this.
All this data that you could be analysing, that you can apply to your trading rules to powerfully impact your trading.
Remember everything you do, not just in trading, in your life as well, It’s the same as in your life – Everything that you do must take you forward.
It needs to progress you because that is where you get momentum from.
And that’s where you start getting inspired, inspiration, consistency.
And that’s where you start getting confidence and certainty about what it is you’re doing.
And when you’ve got confidence and certainty and inspiration, there’s no space for stress and there’s no space for doubt.
And then the more confident and certain you are, the more you’ll be in tune with the market.
The more stressed you are, the more lower vibration you’re operating from and the more fear you introduce.
And the more fear you introduce, the more you will tend to gamble and more hope trading as well.
So it all starts with how you manage the single most valuable resource that we have in society today and that’s TIME.
Time is the single most valuable resource.
That is where our wealth is.
It’s not in money, it’s not in successful trades. It’s not in our jobs.
Without time, we’ve got nothing.
Okay, so manage time.
Manage your time.
Be mindful of what you put your attention to.
Don’t put your attention to low priority actions, and that includes how you trade.
Don’t put your attention to hope trading or gambling or fear or your last lost trade.
Don’t define yourself by your last lost trade.
Set aside specific time that you’re going to be trading for and in that time, what are you going to do?
Be precise about what it is you’re going to do.
So like you might, for example, trade for 20 minutes.
You might review your past trades for 10 minutes and then maybe spend a half an hour refining your trading plan or learning something more about building wealth or refining your target.
Understanding what it is that you’re going for.
What is your target for trading?
What is the number you’re after?
So what does that represent and what timeframe do you want to achieve that number – in how many years?
And reverse engineer it back to what are your monthly returns needed.
So everything you do around trading, make sure it takes you forward.
Make sure you are building on your knowledge, building on your confidence and not just sitting in front of the chart, flicking through charts, looking for entries, because that is just deadly in trading, that is just deadly in trading.
The more action and activity and energy you create around your life, around your trading, the more inspiration you’ll have, the more momentum you’ll have and the more successful you’ll be.
Time is of the essence. It is the most important asset you’ve got.
It’s what we all are chasing, so manage it.
Because if you manage your time, you won’t find that you don’t have time to trade.
We all have the same 24 hours.
We all have the same time every single day and it is possible to achieve incredible things, but it’s about intentionally setting about focusing only on high priority actions, actions that will take you forward, take you closer to your goals.
I have a philosophy that if I have 10 things on my list to do for a day, seven of those must be high priority actions that will powerfully take me towards my goals.
No matter what it is I’ve got on my to do list.
Whether it’s in my work, in my personal life, or in my trading, it doesn’t matter.
70% of everything that I do needs to take me powerfully towards my goals.
Obviously, there’s always going to be the mundane stuff.
There’s always going to be like the 30% where you have to fill out your trade journal or you have to actually place the trades or you have to pay bills or whatever it is.
There’s always going to be the 30% of tasks that have to be done that don’t necessarily take you powerfully towards your goals, but they’re essential for your day to day life.
But 70% of what I do every single day, are big steps, high priority action steps towards my goals, towards what it is I want to achieve ultimately.
And that’s in all areas of my life, in trading, in my work, and in my social life, my relationships, whatever it is I’m doing, okay?
So as I said at the beginning, we overestimate what we can achieve in a day or a week or a month, but we underestimate what we can achieve in a year, five years, 10 years.
So let’s start managing our time.
Because if you don’t do that, you set yourself up for failure.
You set yourself up for feeling like a failure as well.
So know how much time you’re putting into trading and identify very clearly what it is you’re going to be doing in that time.
Do not allow low vibration activities to dominate your time.
You’re the architect of your life.
You’re the director of your life.
You control your life.
Do not allow life just to happen to you.
Do not allow the charts to dominate you.
Do not allow trading to dominate you.
IT’S OK NOT TO BE IN THE MARKET – KNOW WHEN NOT TO BE IN AND WHEN TO BE IN…..Click Here