There are obviously things that are more important than money. Family, friends, your health, your dog, maybe even your cat (that is pushing it). But the worst thing a trader can do is forget their objective, to take what the market gives you in money and learning. In other words, make money today or tomorrow.
When a trader no longer has limits or feels no reason to examine a large loss they are susceptible to blowing out, creating bad habits, and undoing massive amounts of time and energy spent learning. It is usually as sign of something deeper going on.
So here lies the rub. I said and I firmly believe there are more important things than money and trading. I will never change that under any circumstance. But, it is extremely dangerous, when at your screens, to forget how important money is. Your every action and thought should be bent to how can I get the most out of the risk I am taking. When at your screens nothing else can matter. Trading does not allow you to have “bad days”. Only days you are in a good position mentally to get the most of the risk you are taking and those that you can’t and shouldn’t trade.
One of the hardest parts about being a trader is managing that. And managing the people around you. If someone would write a book about being in a relationship with a trader, it would be a best seller. I would like to distribute it to all of my friends and family. Trading is great because you can’t hide from the things around but you have to always be dealing with things that come up in life. Every person handles them in a different way and that is hard on everyone. You can escape them for awhile but they will eventually manifest themselves in your trading through the loss of objective.
I am always hesitant to force how I see trading in certain ways. Trading is intense. But it does not always have to be intense. The intensity of trading does not have to affect your life. I recommend always taking steps to remove trading and life. When they converge, they always do, you have to be prepared to handle them quickly.
There was an old broker who told me, rarely will both your personal and professional life be going in the same direction. Lean on the other to move in the right direction. When one starts dragging the other down it is time to stop. There are times when you can fix things on the run and times when you need to stop. Knowing the difference will save you a lot of money, time, energy, stress, and frustration.
Each trading day and trade is a fresh start, are you taking advantage of it or are you in a position to take advantage of it? When I can’t answer or even ask that question, the damage has usually happened. At that point it is time to take the medicine or be sick till it kills me.
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