You Can’t Outwork the Markets

You Can’t Outwork the Markets

Whenever I hit a rough patch my initial reaction has historically been to double down on my workload.

Hard work has made me a profitable trader, so that clearly must be the solution to my rough patch, right?

What I do is I hit the research hard. I look to develop new trade setups. I look into trading new markets. I buy the latest Artificial Intelligence course and get my nose to the grindstone.

Every time I do this I end up burning myself out. I’m stressed because I’ve hit a rough patch and I’m tired because I’ve doubled my workload.

Being tired and stressed is the worst combination if you’re trying to make good decisions.

The problem is that as a trader you don’t get paid by the amount of work that you put in, you get paid by the quality of your decisions. This isn’t a 9-5 job. Hard work can help but ultimately having good judgement is where you get paid.

The solution to the rough patch is frequently to do the opposite of what I actually do. You take the foot off the gas, look after yourself physically and mentally and take some time to rest. Your focus should be on trading less, a lot less and focus on the quality of your trades. Stick to the ones where you have a really high percentage of making money.

So next time you hit a rough patch just remember that the first thing you need to do is focus on optimizing your decision making and not doubling your work load.

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