March 7, 2010

Tips to Starting Your Trading Day          

For many weeks we have been speaking about trader issues and solutions: How to create a Plan, what to track and how to fix things.  

This week I would like to focus on something a bit different yet the same and important.  It’s the same because it does have to do with your mental health, different because it’s a technique that helps you start your day. 

When we first get up in the morning it’s so very important to start the day “right.” What is right? Having a good night sleep is the key and feeling fresh, awake and ready to go. 

This sounds like a simple thing for traders and in reality it can be our greatest challenge.  The mood we come to the trading desk with also influences how we react to the implementation of a trade. If we had a bad night and are frustrated before a trade most likely we carry along the same feels into a trade. The frustration can linger and just when we need to be patient anxiety kicks in and influences the trade. 

A Good Sleep

So let’s begin with a good night sleep. Many traders tell me they have trouble and to be very honest I run into this as well.  I have really done lots of reading on this as it seems to be a common problem with the Baby Boom generation. 

I will pass on a few things that might be helpful.  First, a good night’s sleep begins hours earlier. Mentally look to “wind down” after the day and go into a slower paced mode, reading, meditating before you are planning to sleep. The goal is to relax the mind and divert it form thinking about anything stressful. Avoid arguments with loved ones, or anyone else for that matter, being calm, cool and collected. No stress and no worries. 

Physically, also begin the same process maybe with a hot shower or bath,  listen to some calming music, pop in a movie, anything slow and easy is great. Avoid exercising late in the day and “pumping up the volume” to close to bedtime. 

Stay away from caffeine, chocolate and any foods that are stimulants at least 3-4 hours before retiring.  

In fact …and I know this is not something many are likely to do, but if you can stop drinking anything with caffeine altogether, you will be much happier and will not experience the early morning crash coffee has a tendency have. 

Next when finally in bed, should you not be able to sleep your mind or your body is not relaxed yet. Here are a few things to consider. 

You can do the old “sheep thing” or count backwards from 100 but mentally you are looking to stop the mind from thinking of the things that could be keeping you awake or anything you are worrying about. Think of a plain white empty wall, to  clear the mind. Soft music with a timer works. I put on a boring TV station and set the timer. 

Start your day – exercise 

Using the power of thought we are going to set you day with three thoughts that will permeate the whole day’s mood.  

Take an index card and write three thoughts you would like to be with you throughout the day that will set the tone.  Most important put the most important one last. 

Here is an example:

1) I am grateful and I feel love for all those I come in contact with.

2) I am happy and everything is do is pure FUN!

3) Today I am filled with joy and energized with each new trade I take. 

Put this card on your bed-stand near the alarm. As soon as your eyes first open in the morning,  immediately read your three thoughts for the day. 

You can read them over but it shouldn’t be necessary. The key is that it’s the first thing you see and THINK. 

Great traders are healthy in their minds and when they trade they are focused and clear thinking to handle any kind of markets. 

So work to create a good morning routine that starts your day from a good place and good trading!