Time Off: Knowing When to Take It To Avoid Burnout
While
this article will probably resonate with more seasoned traders, it is
critical that newer traders fully understand the importance of time off, and
frame of mind when trading. I am writing
this at a time when I am experiencing a “burn out†phase, combined with a
time where there are a lot of things going on with the business that require
more of my attention. The key for newer
traders is recognizing when you are experiencing this and secondly, to have the
ability to get up and walk away for a few days.
Too often as
traders, we fear that we will miss great trading opportunities if we do not show
up each and every day. While that may be
true, I look at it this way: When I am
not trading well, I start to miss trades and not see great trade setups that
normally I would pounce on. Secondly, I
start to become very apprehensive about my entry points and frequently get in too
late, rather than being “mechanized†to simply react and go for the throat
on my entry and exit points. In short, if
I am not trading well, the markets could be very volatile (great for daytrading),
yet it won’t benefit me in any way, since I am less than 100%.
How
does a new trader identify these periods without confusing them with just
laziness or an excuse to take a vacation? I
suppose the answer will be different for each person, but I feel that there are
certain signs that are probably quite common among all traders:
-
Noticing
that your performance is suffering
-
Missing
trades that you normally would take
-
Hesitating
on entry points, in short, over-thinking the trade (paralysis by analysis)
-
When
you get up in the morning, do you have that “eye of the tiger†and
supreme confidence?
Remember
that there is no reason to feel bad about experiencing any of these moods or
symptoms — it is normal for traders. Traders
are under so much stress and operate at such heightened states of awareness
longer than most people do in a day, that their bodies just can’t sustain it
after a while. Joe DiNaploi, of DiNapoli
Levels and Fibonacci numbers fame, suggests that traders take a week off every
two to three months. You will be
surprised at how refreshed you are when you get back.
More importantly, your clarity will be back.
Suddenly, you are seeing all the nuances of the market that you were
missing before, that allowed your trading to excel.
One
other aspect to keep in mind is distractions. It
is so easy to get sidetracked by the phone, other people, etc.
Put yourself in an environment where you can isolate yourself from these
distractions.
I
will be back in full on Thursday, refreshed and confident that I will be able to
trade the market effectively. It was tough to walk out the door on Monday
afternoon, knowing I would not be back for a day or so, but once I detached
myself from the markets, I realized how sorely I needed the break. A little
quality time with my wife out on the Pacific ocean was just what I needed.
As
always, feel free to send me your comments and questions.