Sunday, 13 November 2011

Self-Esteem And Routine

Before this blog turns into the dreaded P&L blog LazyTrader worries about, here's some good old trading advice. The original article on a "Daily Routine" was intended for futures traders, but with a little tweaking, I think a lot of the routine can be modified to be relevant for sports traders.
• I will only trade on days when I am well rested, relaxed and not mentally distracted by matters that will divert my focus. [Common sense advice]

• I will spend at least 15 minutes relaxing to music or a form of meditation after a good nights rest before trading. [A little too new-agey mumbo-jumbo for me, but it reinforces the importance of being rested and relaxed]

• Conduct a Pre-Market Analysis myself, perform a top-down review of the major markets and develop a plan of the day. The trading day is from 9:30 a.m. (EST) to 4:15 p.m. divided into a morning session, lunch and afternoon session. [My 'trading day' will depend on what events are going at at any time]

• I do not trade for the first hour on Mondays. [Not really relevant for sports markets]

• I do not enter any new trades the last half an hour of the market hours (1545 – 1615 EST) [Again, not relevant]

• After I have met my goal or the market is closed I will log my journal and then spend quality time with my family. [Goals are counter-productive, but updating records and quality time to enjoy the rewards of your trading are both musts]

• At some point before the end of the day I will revisit the S&P trading day and back test my plan and system. [For sports traders, this means constantly keep track of what is working, and what is not working, and keep looking at new ideas]
From the same site comes the advice that you can't trade the markets with the proper mental edge if you don't have self-esteem. In a way, this ties in with my belief that the money you trade with needs to be money you don't need, and that what others think of you is irrelevant, but the article takes it a step further.
Trading the markets requires a person to be persistent and resilient. People with self-esteem don't question their ability. Despite the number of setbacks they experience, they fully believe that if they work hard enough, success is guaranteed. At their core, their self-esteem is true and unwavering. As noted self-esteem expert Dr. Nathaniel Branden observed, "When we appreciate the true nature of self-esteem, we see that it is not competitive or comparative. It is not about making myself higher by making you lower. It has nothing to do with you. It is the joy of my own being." But the competitive spirit often interferes with people's ability to maintain self-esteem. People compete with others. They compare themselves to others and only feel good when they are winners. Ironically, though, winning traders look inward, live by their own rules, and don't care how anyone else is doing. They humbly go where the markets take them and accept what they get.
"I don't define my self-worth by my net worth." Winning traders feel good about themselves no matter how much they win or lose. They feel good about themselves because they know deep down that they have value as people. They look inwardly for self-acceptance, and follow their personal values; they don't care what anyone else thinks. If you want to trade the markets with a calm, astute, mental edge, you must develop a genuine sense of self-esteem. By making sure that you live by your own values, and fully accept your limitations, you'll develop a true sense of worth that won't be easily shaken by momentary setbacks or failures.
Finally, check out this video on Why most people will never trade successfully for some useful advice.

1 comment:

refscud said...

Hi, couldn't get link to work for the video 'why most people will never trade successfully' not sure if it's just me?