What Drives You More: Your Passion For Trading Or Your Addiction? Tips On Fostering A Healthy Trading Passion
I was wondering how many hours a day you need to devote to trading. Is it hard for you to tear yourself apart from the heuristic technical indicators? Have those closest to you ever stated that you’re always glued “to the market? What exactly drives you, if anything? Is it your passion, or are you hooked on something? (I’ll touch on this later).
Many of us, I’m sure, have a profound connection to the foreign exchange market but we should all be aware that there’s a thin line between enthusiasm and unhealthy attachment. Now, in terms of both time and money, how much time and effort should you put into studying the markets and engaging in trading?
Two elements I believe contribute to this for both novice and seasoned traders.
Time Frame:
A trader operating on a daily time frame will notice significant differences when switching to a 5-minute time window. To illustrate, let’s assume you choose to trade on a daily period, which results in a complete candle every 24 hours.
It would be counterproductive to check the chart every hour, every 15 minutes, or every 30 minutes, since the candle is still in the stage of formation and would never appear at any of those intervals.
Due to the lengthy formation of a candle, traders and analysts must allocate more time to monitoring markets while viewing longer time frames. On the other hand, if you trade off a shorter time frame say, five minutes this is where you should focus the bulk of your market research and trading efforts.
Experience:
There is also the factor of experience. As I’ve seen, new traders sometimes spend hours studying the markets before making their first trade.
They may examine the market for as little as 5 minutes or as long as 30 minutes, depending on the time of day or week and when they find a trading setup, say on the daily timeframe, they may examine the lower timeframe to determine whether the transaction would be profitable.
How can we prevent our enthusiasm for trading to becoming destructive?
A basic principle, “harmonious passion,” is described in depth in the book The Passion Paradox, which they claim to have discovered as a means of solving the paradox. Developing a mastery mentality is essential for harmonious passion. Anything which is done for its own sake; is precisely what I’m referencing when I talk about “flow.”
Is there a way to cultivate a “harmonious passion” for trading?
There are 3 doable methods, as outlined in The Passion Paradox. Although not designed with traders in mind, these strategies are easily adaptable to the trading world.
Chill