Summer’s over and it’s time to get back to the grind!
Whether you spent the last couple of weeks hitting popular tourist destinations, playing the latest game releases, or staying at home and binge-watching Mindhunter on Netflix, there’s no reason not to hit the ground running at the start of September.
Unfortunately, a lot of traders I’ve had conversations with find it hard to get back on the grind especially after coming from a long vacation away from the markets.
Most of them are usually overwhelmed by all the events they have missed and let the stress get to them. A lot of times they end up making trading mistakes due to lack of preparation and self-confidence.
Here are some tips to help you with your post-summer trading:
1. Leave the vacation vibes behind.
Making pips requires concentration and focus. You won’t get that by adding filters to all your vacation pictures, labeling your souvenirs, and looking at your friends’ summer photo albums on Facebook.
Set aside a time for the weekend to do all that and drag yourself back to a trading mindset. Hey, your next vacation isn’t gonna fund itself, right?
2. Catch up to the current market conditions.
What major events have occurred since you left? Are these enough to change the fundamental landscape and existing market correlations?
3. Make the necessary physical and mental preparations.Just like how a surgeon shouldn’t enter an operating room without his tools or a lawyer shouldn’t enter a court room without his research, traders also shouldn’t trade without proper physical and mental preparation.
Clear your desk of clutter and make sure that your trading space is free from distractions.
Also, check your demo or live trading accounts before you start trading. Did you accidentally leave open orders (this is a no-no!) or are your margin levels exactly as they should be?
Of course, don’t forget to mentally prepare yourself for trading.
Review your trading journal to see which habits you should avoid and which ones you should practice more often. Also, make detailed trading plans so you’ll have more control over your trade management.
Remember that you can always slowly transition back to trading. You can start with trading smaller lots or trading less frequently than usual. What’s important is that you get back into the habit of making rational decisions in every trade.
4. Prepare for changes in average volatility.
With a lot of daddy traders and vacation fanatics back from their break, we’ll likely see changes in trading volume and volatility.
Don’t bet the farm on those summer trends, ranges, and correlations, as they could always break as more investors price in their biases. Besides, market sentiment can turn on a dime, so you shouldn’t do bet the farm any day anyway!
Here you go, folks. Hope these tips help in getting you back on track this NFP week!