Last week I talked about the constant pull between work and home life and what I do to balance the two. This week, I’m talking about how fostering my personal relationships helps improve my trading.
Trading — it can be a lonely profession…
Especially if you’re out there on a trading island alone. Do you have friends, family, or a mentor you talk to about your trading? Or when you reference buying calls on TSLA, do you get a blank stare in return? It was John, after all, that said that he started Trade the Markets (which became Simpler Trading) because he got tired of talking to his fish alone. It was a community of traders that he was after. This community thankfully is something we can achieve online (especially in times like these!), but your trading community isn’t the only community that impacts your trading.
If you’re like me, most of us (except the most introverted traders) also love the in-person connections and relationships we hold so dear in life.
As humans, that’s at the core of our species. And relationships? They became increasingly hard to manage with the six feet apart distance we have shifted to, making them more difficult than ever. And no, I’m not exclusively talking about a relationship between a significant other (although they certainly aren’t exempt from the ‘hard to manage’ category, ha!). I’m talking about the variety of human connections you have in your life — perhaps with your siblings, parents, and coworkers, or old friends — of which all dynamics have changed substantially.
I know for me, I cherish going home to Seattle to visit my family. Something I haven’t been able to do, due to the pandemic.
It’s these sudden dynamic shifts in life that create mental roadblocks for humans overall but also in trading. When nothing is as it was, there’s an adjustment period as we walk through the chaos and get to the other side. This is true in life… just like it’s true in the market. When the trend suddenly shifts, traders can hit roadblocks making it difficult to see through the dust and find their way out.
Did you know that the number one time traders lose money (in my humble opinion) is when the trend shifts on us, unexpectedly?
We’re long and riding the wave, then suddenly the market reverts to the mean. Or perhaps we’re shorting the cascade on the way down, and suddenly a massive short squeeze hits? It’s this trend shift that’s one of the most difficult aspects in trading (and will have a full chapter dedicated to it, in my book!). It’s also the same in life. Humans generally don’t like change.
So naturally, with all the changes stress begins to creep up, which activates your Trade Monster. Core relationships keep you steady in life, which keeps your trading steady. When your life feels out of whack, it’ll inevitably impact your trading.
So what’s the way to get around this? Well, during my sabbatical, thankfully I had the gift of time, but don’t feel like you need a sabbatical to get some 1:1 time with those you care about. Take the lesson from me — recognize why and when you need it, and go forth.
The gift of time
During my sabbatical, I was given the gift of time back. Time that I could set aside to rekindle some of my favorite relationships, especially with my family and closest friends.
Socializing in person was difficult still, (thanks COVID!) but I was able to carve out more time for phone calls, facetimes, and Skype group meetups! It takes effort to get everyone in the same place at the same time — but, it’ll be far worth it for the sense of enjoyment you feel during and afterwards.
When you’re feeling connected to those around you, traders and nontraders alike, and you can pull out of the sense of discombobulation, it instills a sense of calm. That’s critical after a major shift in life, or in the market. Having other traders, and a community to bond with over trading, is key to our trading success — but even beyond that, strong relationships and connections are critical to holding a steady line, as a trader.
Do you ever notice how when your relationships take a backseat it can impact your trading? Who has been the biggest support in your trading — inside and out? Both for the relationships themselves and for the impact they have on your Trade Monster. Let me know in the comments.
And look for next Thursday’s newsletter where I’ll talk about overall health and nutrition, and how it impacts overall wellness and trading.
And don’t forget…
This weekend is the 4th of July so here at Simpler Trading we’re doing 20% off across the board. Click on the image below to be taken to the store — the sale runs July 3rd to July 6th. Enjoy!