Your Daily Process Can Be Killing Your Career or the prospects for your trading career. Professional traders bifurcate their trading day into preparation and tactical.
After the close, pros get prepared for the next day in terms of research and running their models.
During the following day, they spend their time focusing on trading tactics and managing risk.
This type of focus on your behavior provides a platform for enhanced performance due to your focus.
If you try to do 14 things at one time while trading, the lack of focus can lead to your making errors, missing trades, or taking small losses.
This is a short list of what can happen… I would not try to find trades “on the fly.”
That’s amateurish and chasing trades or markets is not a sound strategy in order to build a long-term track record on your P&L, nor is it behavior that you can replicate for years and years energy-wise.
Do your work the afternoon or night before, and spend the next day executing the plan.
Don’t waver from this discipline. It will serve you better.
What Jocko Willink Can Teach You About Trading
“As a SEAL, Willink developed a habit of kicking off his day by moving, not thinking. The way he sees it, you’re defeating the purpose of waking up early if you gradually shake off your lethargy and plan your day over a cup of coffee. Go ahead and drink some coffee, but then go work out instead.
To facilitate this, make tomorrow’s to-do list tonight. You already know what you have to accomplish tomorrow, and you’re better off planning your day quickly and efficiently.
“Don’t think in the morning,” Willink said. “That’s a big mistake that people make. They wake up in the morning, and they start thinking. Don’t think. Just execute the plan. The plan is: The alarm clock goes off, you get up, you go work out. Get some.”
So the point is, make your plans the night before, then execute during the day: don’t stop to think in the middle of the action. I think this makes sense whether you are training the AM or getting to the trading desk.
It makes even greater sense when you think about how how much more prevalent computers and Artificial Intelligence are playing in trading. The more you can extricate human fallibility from your trading, the greater the chance for success. That means computerized systems, algos, and AI should become part of your trading experience more and more.
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