As traders, we try to maintain a high level of concentration and performance at all times. The focus is on trading plans and processes, risk and reward, indicators and charts, coding and strategies, and about a million other possibilities at any given time. Truly, it is impossible for any human to keep track of all the information available.
When you get to the point where nothing makes sense (we all get there) it’s time to look away for awhile. I call this “data fatigue” and it occurs on many time frames. In the day time frame, it might just take a good stretch or a walk to get your head clear and focused on the most important pieces of information coming at you.
Look at yourself each day from time to time and rate your ability to concentrate on a scale of 1 to 10. Be honest and cognizant of how your concentration levels change at different times of the day and days of the week. Over time, weeks or even months of sitting in front of the screen, you should begin to notice when this fatigue builds up and you cannot muster the concentration you need and you don’t have the clarity you are looking for. Then it might be time for a break.
Of course, staying in good physical shape, getting plenty of sleep, not smoking, and taking it easy on the drinks during the trading week will help your concentration and help to keep “data fatigue” in check. No matter your physical condition you will need to step away from time to time. Maybe a walk will help at times but there are times you need to step away for a few days.
Personal problems of all kinds can create the same sense as “data fatigue.” When you have stressors in your life soaking up your energy, they split your concentration and there is no way you can fully focus on your trading, even for a short period. Dealing with the issue at hand is the way to be able to put it behind you and resume trading at your best. Depending on the stressor of course, this can take some time but it’s not worth putting yourself or your account at risk until you are in the right frame of mind.
There are occasions that will require a little more time to recoup the energy needed for your best performance. If you haven’t reached this point yet, you will and hopefully you will know you are there before any damage occurs in the form of losses. It is easy to get lost in your trading and even those in the best trading “condition” need time to rest.
After coming back from some time off, not a big vacation, kind of a half “stay-cation” and a little getaway, I found my vision of the market to be much clearer. I don’t know why this surprised me, I mean I’ve been around this block more than a few times, but you forget how much this can help you get back to the performance you want to expect from yourself.
For what it’s worth, I hope you take the time to really think about this and make time away from trading part of your plan, part of your plan you actually follow! I write this today because a big part of the reason I enjoy trading is seeing others succeed. This will help as it has helped me and many others. If you feel you “can’t see the forest for the trees” it’s time to step away and clear you head.
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