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Walking Away

I caught Joey Fundora’s post today called It’s Okay to Take a Break From Trading [1].  He brings forth some excellent points, so go check it out.  And while Joey primarily addresses backing away when you feel you lack an edge (rightfully so) or when going on vacation, it got me thinking about the times when trading just becomes a little too important, and perhaps even a self-imposed staycation might be warranted.

When the Scales Are Tipping…

trading-perspectiveTrading is one of those activities that can put you on top of the world, or completely bury you – if you allow it.  And by “if you allow it,” I’m not referring to making or losing money.  After all, every one of us will have some good trades and some bad trades – that’s not what I’m talking about.  I’m talking about allowing trading to be the all-important activity in your life.  If it’s sitting on that throne for you, then unfortunately, your daily satisfaction will hinge upon the color of your P&L.

That’s a really tough spot to be in.  It magnifies your mood swings from day to day, and honestly, it’s not healthy.  It’s no fun either.  If you’re driven (as I am), the up day’s don’t carry near the weight in satisfaction as the down days tend to carry in dissatisfaction – regardless of if you’re making more than you’re losing.  (Go back and re-read that sentence, because it’s a little confusing if you breeze through, but it’s of utmost importance.)

Stated otherwise, if I’m making good money on my up days and giving back only a portion of it on my down days, I’m net positive.  But if I’m allowing my personal happiness to be based upon my performance today (or yesterday or tomorrow), I’m in for a world of hurt.  I’m experienced, and I’ve been at this since the 90’s, so I have high expectations.  Taking the aforementioned personal-satisfaction-based-upon-P&L approach, when I make money, I’m pleased but I expect to.  When I lose money, I’m upset and the mood pendulum swings too far in a detrimental direction.

That’s a mistake which every one of us will at times make – but do not let it become a habit.

Work Hard & Let Go

Trading is hard.  Really, truly difficult.  Getting paid from your positioning takes real skill and experience, and that means you have to apply yourself to acquire those things.  You don’t acquire them without true desire and hard work, which means you’re invested…with your time, your money, and often times your esteem on the line.

Just this week I had a day where I hit my peak of frustration.  I didn’t smash any keyboards or scream at my computer or kick the dog, but I was running hot – and I hated it.  I carried it with me, and later realized I’m giving trading too much weight.  Yes, trading is what I do, and yes I have as strong of a desire to be successful at it as anyone else, but when I let a bad day bring me down the way I did, I’m giving it too much weight.  Trading’s an activity, it’s not who I am.  I have far too many other blessings in my life to place trading above them, but sometimes I need a reminder.

Maybe you need that reminder today as well – and here you go!  Work hard with your trading, aim high [2], but keep it in its rightful place.  As my buddy Bella says, Move On After a Trading Session [3]. If you’re struggling to do that regularly, just walk away until you’re ready to return with a clear head and the proper perspective.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast [4]

Are you following me on Twitter [5] yet?