Thursday, 4 March 2010
After my time away, coming back to trading made me see how tense I am when I trade. I realised that the way I trade is similar to being in a life or death situation. When I trade I don't want to fail, to the point where if I did it would result in death. Obviously I wouldn't die! But my brain seems to react in that way. A lot of this boils down to my innate competitiveness that is present in nearly all successful traders - probably mostly short term traders. The best way I can explain the way I present myself while trading, just imagine that you were playing this game where you had to beat half the people at pressing a button the fastest before they did otherwise you would die. You would most likely hit survival mode and your body would present itself so that you had the highest (higher than normally) chance of pressing the button the fastest you possibly could. This attitude I think is partly why I managed to do so well. My awareness of that led me to seeing that I wasn't giving my body and mind any peace, so I have tried to minimise the effects.Through through doing so I've found an edge has been lost. When I go back to my 'old' ways, I focus better without worrying about the effects it has on me and it shows in my daily profits. I'm not really pointing to anything here, just merely another interesting observation of many that you reveal through a trading career - or any career for that fact!
March is around now, and racing quality will pick up. After speaking to a few beginners, word seems to spread from the high-end traders when they get excited for March and spring and summer racing to begin because liquidity increases, price volatility reduces, and generally the randomness decreases making trading easier. But for the beginners, ultimately it makes no difference because if you haven't got experience in the markets you won't intuitively feel this change. Using small stakes between £2 and £50 doesn't really make a difference in winter compared to spring and summer markets. So a word of advice would be to not give yourself false hope that if you're not trading well in the winter, don't think that because the professionals prefer the higher quality racing, that your trading will improve because it's 'going to be easier'. Perhaps you will get better results, but that may just be because your trading style suits the less volatile markets. As you gain experience, you'll learn your approach must change from season to season. And as you improve further, you must change your approach from race to race. Every race is different. Every race!