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Developing a Trading Plan

10 Ways A Trader Can Balance Trading And Life

“You have power over your mind – not outside events. Realize this, and you will find strength.” – Marcus Aurelius

The weakest part of any trading system is the trader themselves.

To be a successful trader we must manage our self. The ability to manage our own physical, emotional, mental, and spiritual health will go a long way in determining if we can maintain the energy and drive that it takes to be a consistently profitable trader over long periods of time. Like in so many other areas of life I suspect that the reasons that over 90% of traders fail to be profitable is that they fail to manage them self and so also fail as traders because self control and self discipline are the key elements of a successful trader.

1.    So much is written about the dangers of the mathematical risk of financial ruin of a trading account by trading too big but little is written about the risk of emotional and mental ruin through trading too big, too much, or without a balanced life. A trader can still make a comeback after blowing up a trading account by getting together more money but there is no coming back  from personal ruin and permanent  loss of hope and belief in them self as a competent trader. 

2.    We must run our trading like a business scheduling our “on” and “off” hours. When our family will know we are focused and working and when we are available for them.  We must always be sure to schedule quality time with our spouse, children, friends, and family for optimum emotional health.

3.    We need to have hobbies, recreation, and games that make us forget we are traders for a time and absorb us into a fun that enables us to recharge our batteries and return to our trading refreshed and with renewed energy.

4.    We must be able to leave our trading results at the trading desk and not allow them to bleed into our personal lives. The best way to do this is to trade a position size that keeps our emotions manageable.

5.    A trader really needs a diversified life where it is not all about trading; trading is just a big part of it. Having a healthy family life, friends, hobbies, exercise, and  good nutrition leads to a balanced personal portfolio of time and energy and helps to keep trading in perspective as just part of a bigger life that is about much more than wins and losses on a screen.

6.    Having a great group of trading buddies helps us remember that we are not alone and that others share our journey as a trader. The camaraderie is very healthy and it is great to have someone that understands us as traders. It is great to share our own lessons with others just starting out on their journey, share ideas with others, or have an advanced trader we can learn from. All these relationships are healthy and rewarding if we find the right trading group to be a part of.

7.    Our spouse has to have the confidence and faith in us that we will be successful in trading eventually and trust us in managing the family’s assets. We cannot sugar coat it though, they need to understand the risks involved in trading and our money management and our winning percentage. It is still the trader’s job to ensure the family’s needs are taken care of through the proper safety nets and not attempting to trade for a living exclusively until the right size account is in place and the right track record of success shows great odds of success. Most traders will have to make a living and pay bills in other ways and simply trade for capital appreciation that is truly the best path for most.

8.    Only a trader’s passion and work ethic toward trading will take them the distance to success. Trading is not for everyone but can be richly rewarding for those that put in the time and run the race with all their heart, focus, perseverance, and drive.  At first the work and frustration for no rewards seem pointless but after getting over the learning curve to consistent success the rewards can change lives. We must remember though that we trade to create a great life we not live simply to trade.

9.    A trader needs a spiritual aspect of their life to keep them centered with a bigger perspective on life whether it is a belief in a higher power, prayer, mediation, or mindfulness. A trader has to have access to a part of them that is much bigger than any trade or the market.

10.    It is not the trading and even the eventual profits that could make us a better person as much as the lessons and principles we learn from our trading that we can take us to greater success in many  other areas of our life and make us a better person as a whole.

Related Reading

More articles by Steve Burns:

Top 10 Trading Books

10 Reasons To Trade Weekly Options

20 Trading Truths I Learned The Hard Way

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Check out his blog: NewTradeU