Saturday, August 29, 2015

Live Your Life the Way You Want to Trade

A major problem I encounter among professionals is that they pursue business through busy-ness.  They equate doing more and getting items off their to-do lists with being productive.  In the recent Forbes article, I provide an alternate perspective:  one in which unstructured time can be the most productive time of day.

Here is an important principle of trading psychology:  You can only manage your trading capital--and your trading--as effectively as you manage the rest of your life.

Take that one to the bank.

Will we truly trade in a rule-governed, responsible way if we live our lives unconstrained by organization and discipline?

Will we truly develop new and better ideas if we're not regularly feeding our brain with new and better information and experiences?

Will we steadily grow and develop as traders if we're not growing and developing in the rest of our lives?

How we live is how we'll trade: they are both expressions of what we ultimately prioritize.

I can offer no better advice than this:  Live your life the way you want to trade.  Be the person outside of trading hours you want to be when markets are open.

Further Reading:  Managing Your Money and Your Life