Best Practices In Trading: Getting To The Next Level

 

6/8/2026 - In this series of posts, we'll take a look at best trading practices that contribute to long term success.  The first best practice is utilizing time effectively when you are *not* trading.  There are always slow periods in markets, and there are always periods when you just need to let your trades play out.  During those periods when you're not trading, how productive is your time?  Do your activities during slow portions of the day and before and after market hours contribute to your trading success?

The best traders I've worked with are actively engaged in markets when they are not trading.  They are looking for--and testing--new trading edges.  They are talking with other traders and picking up on market sentiment and news they might have missed.  They are reading research reports; they are conducting their own studies; they are reviewing fresh market opportunities.  In short, the best traders are just as immersed in idea generation as they are in placing and managing risk.

Many, many traders crave stimulation and can't tolerate any feeling of inactivity and boredom during the day.  That leads them to trade when they have no documented edge.  Such overtrading is not a function of fear and greed.  It results from the need to fill a void: the need for excitement.  The best traders have well-developed lives outside of market hours and don't need markets to provide them with stimulation.  They are free to use their time searching for fresh ideas and researching new edges because they find the discovery process itself to be stimulating.  They also get stimulation from their personal activities and relationships and don't need to get it from taking risk in markets.

A great way to identify excellent traders is to see what they do when they are not trading.  Productive non-trading time builds the mindset...and ultimately builds the trading.