1) If you do two things at once, one of them will be done wrong
When you trade, focus on your methodology. Do not check your Twitter feed, reply to E-mails and chit chat on IM while you are trying to make decisions. Without exception, multi-tasking takes away from your ability to focus, as well as from the ability of your subconscious mind to properly store patterns and information, and from your ability to access your inner voice.
2) Everything that isn’t your main purpose should be either delegated or dropped
Speculation is a business, treat it like a business and you’ll have a chance to succeed. That means that anything that is not part of your core business should be delegated. Outsource the nonsense in your life and focus on your core business activities, the price you pay for outsourcing will be the best trade you ever made.
3) Pay attention to what’s vulnerable, not just what’s strong
Trade from the short as well as the long side. Markets go up the stairs and down the elevator. Try to balance your emotional system so a trade from the short side is as easy as a trade from the long side. The ability to trade from both directions will smooth the volatility in your account and your income. In doing so, you’ll make your business more robust and your emotional stress more manageable.
4) Take some time to do absolutely nothing
Professional athletes in ALL sports do not operate at a high level 52 weeks a year, they take extensive periods to rest, relax and do nothing. Speculation is an intense mental sport which also requires periods of total relaxation. Take the time to do absolutely nothing.
Thanks Mike…good info as usual. Can you give us some examples of what could be considered outsourcable?
Mostly administrative tasks. For example, anything regarding your initial data rake or screens can be outsourced so that you can just focus on the 2-3 setups that are worth looking at. This is true whether you are a system runner or discretionary trader.
Some people like the feeling of doing busy work, so they continue doing administrative duties because it gives them a feeling of accomplishment while their trading is going nowhere. Don’t get caught up in things that don’t relate to managing risk.