TRADERS´ English I November 2013 - page 11

COVERSTORY
11
This means that their body is not
getting enough recovery time prior
to the next training stimulus. The
result is over-training, a decline in
performance and an increased risk
of injury. Put simply, you cause your
body to “be ruined”.
Similarly, instead of sitting ten
hours straight in front of the monitor
and watching every tick, you need
time to recharge your batteries while
trading. If you fail to take any breaks,
your concentration and performance
will be similarly impaired and there
will be an increased risk of error,
causing you to suffer unnecessary
losses. However, everybody needs
to find out for themselves where the
optimum is – whether it’s trading or
triathlon. Your best bet is to start at
a low level and then increase slowly.
Sooner or later, you will find “your”
level where it feels just right.
Never Trade without a Helmet
Trading is risk management. None other than the
successful trader Paul Tudor Jones said that basically, he
spent all his time minimising risks. Trading without any
risk management is like cycling down a hill in triathlon at
50 mph without applying the brakes and without wearing
a helmet. Of course, this may work out fine – but only
until it does not. And then you will be glad to still be alive
– and in trading, you will be glad to see that your account
still exists.
Trade at Your Own Pace
This leads us to the next important point: This is all about
your own trading, not other people’s. Find your own
performance level and follow your plan in consistently
trading your own trading method. In the end, this will
stand you in better stead than you can imagine. This is no
different in triathlon: Those who allow themselves to be
guided by others and keep trying not to lose touch with
the front runners are liable to overextend themselves.
Overall, you will achieve the fastest time if you constantly
swim, cycle, and run at your own pace. After all, it’s
sometimes the very “fast guys” at the initial stage that
you leave behind in the end after your own consistent
performance since they in turn have over exaggerated.
Much like traders who quickly achieve high profits with
large positions – a year later some of them may no longer
be trading.
Discipline Makes You Successful
If you can only trade well after you have completed some
specific research – something that you may not feel like
doing –, then you should adhere to the process. Sooner
or later you will enjoy carrying out that research if your
brain associates that with positive trading results. It’s
similar to that in triathlon. Everyone knows that hard
interval training increases your speed by completing
short fast-paced training units followed by short breaks.
But it is also unpleasant. Sooner or later, though, new
personal bests will cause you to love even such tough
training.
Learn from Your Mistakes
The good news is that you don’t have to do everything
right from the very beginning. After all, there is especially
one way that you learn on the stock market: from your
mistakes. Unfortunately, this is not a particularly popular
approach. But nothing leaves such an indeliblemark in our
memory as a heavy loss. If this was caused by a missing
stop, for example, you can learn a great deal from this
mistake. That’s why mistakes basically are the best thing
that can happen to you – especially at the beginning of
a trader’s career where you trade a small account. That
way, you will quickly learn without losing large amounts
Stocks like Tesla are the top shares with massive trends that can provide traders with large portions of their
annual performance. However, it is psychologically difficult to hold a winning position for so long – just as it
is difficult to increase the pace and keep it up in the final sprint of a competitive race.
Source:
F4)
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