Specific Topics – Time Management and its effect on Trading
We all know that time flies when you’re having fun. When you are involved in something engaging the time seems to rocket by, even though that same event may feel long when you look back on it. The flip side, of course, is that boring events seem to drag on. A one-hour lecture history lecture can seem longer than the entire era being described.
However your mind set can also determine the same idea. The basic idea is straightforward. At any given time, everyone feels some sense of entitlement. Standing on the line to check out at a big box retailer, you might feel particularly entitled to better service. So, a 10-minute wait for a slow cashier may feel like an hour. On the other hand, if you were sitting in a waiting room at the White House before having a chance to meet the president, you might consider yourself lucky to be there. In that case, a 10-minute wait might not feel so long.
Time is one of our most precious resources. The greater your sense of entitlement, the more that you want to avoid wasting resources. As a result, the more entitled you feel, the more pain you experience when your time is wasted. Even though nobody enjoys frustration, this mechanism is a good one to have. If we did not experience frustration when our time was being wasted, we might persist doing things that do not deserve our effort.
How does time effect our trading. Very often we are excited to trade and impatient to get into a trade to make money. Very often not waiting for the trade plan trigger to properly set up, and with the early entry, you now are in a bad (bored aggressive decision) trade. So what can be some tips from stopping this from happening?
The first tip is to buy a bag of marbles and place them in a far away place that requires you to spend at least one minute to go get one of them. Each time you think you want to enter a trade, go get one of the marbles and put it on your desk. If you still think you should make the trade upon your return then do it. If you think not, and you do not make the trade then go put the marble back (if you did make the trade put the marble back anyway). By leaving the trading room it will cause you to rethink the trade upon your return and give it a new look. If the trade is really good, one minute will not make that big of difference.
The second tip is to stave off boredom by having a timed activity that occurs every 15 minutes that takes at least 1 minute to do. This can be as simple as doing 10 push ups, or getting a new marble from the bag. Forcing one to do something and then not doing it, puts guilt on yourself and takes away the entitlement that can lead to boredom and bad trades.
Now these tips may sound a little gimmicky, they are, but they are designed to mix up your personal time schedule. Its amazing how different the market looks when you come back even after one minute….try it.