FXStreet Expert Contributor
FXStreet
While I'm a big fan of allotting time and effort to improving your trading strategies, I also believe that too much trading could do you more harm than good. For one, few people are able to sustain the level of focus needed to trade for hours upon hours a day, everyday; fatigue will set in. Forcing yourself to analyze the markets and making more trades when you're not completely focused, could cost you some of your carefully planned trades.
On top of that, working long hours can be bad for your health. Studies have shown that chronic stress (the type that can be caused by excessive work hours) can lead to heart disease. Now, you wouldn't want that, right? What's the point of all that hard work and long hours if you won't be able to enjoy the fruits of your labor?
Having life outside of trading also reminds you that trading is a profession. This can help you become more emotionally-detached to the outcome of your trades, which is important in making good trading decisions.
Specific to many forex traders, achieving a work-life balance is especially difficult. Unlike stock trading, almost ALL major news can affect currencies. It's hard not to discuss the constant rain in the U.K. without wondering how much it will affect retail sales. Suddenly you may find yourself checking your open position on GBP/USD at 4 o' clock in the morning!
Work-life balance can also get out of whack for those who set up their office at home. The convenience of being able to take naps in your comfortable bed whenever you like can be a challenge. Some days you'll be fighting the urge to take break from the markets knowing that it is open 24/7, and other days you'll be doing all you can to ignore that alarm clock to spend another 5, 10, or 55 minutes in that cozy bed of yours.
Achieving a work-life balance might be difficult, but it's certainly not impossible. Here's how you can get started.
The first step is to prioritize. Determine how much you value your trading over your personal life. Can you check your trades at the dinner table without getting in trouble with your wife? Are you comfortable with rejecting nights out with friends in favor of your trades? Or are you the type who can easily walk away from the charts?
Once you have identified how much trading you want to handle in a day, you should establish a schedule. Make room for your pre-market preparations, your actual trading hours, and of course, your trade journaling sessions.
It's also important to draw the line on when to call it a day. Whether it's the number of your trades, a certain win or loss percentage, or the end of a trading session, you have to know when to stop. It doesn't matter what kind of schedule you make as long as you STICK TO IT.
If you're having trouble sticking to your new schedule, then you could try organizing or participating in activities outside of trading. Join your friends, a book club, sign up for a gym membership or take dance lessons. Anything to get you out of your trading chair!
Again, remember that trading is also a profession. Sure, it requires passion, effort, and a lot of work. But in order to keep you on top of your game, you also have to take a break from it every now and then to rest, recharge and get your focus back.
On top of that, working long hours can be bad for your health. Studies have shown that chronic stress (the type that can be caused by excessive work hours) can lead to heart disease. Now, you wouldn't want that, right? What's the point of all that hard work and long hours if you won't be able to enjoy the fruits of your labor?
Having life outside of trading also reminds you that trading is a profession. This can help you become more emotionally-detached to the outcome of your trades, which is important in making good trading decisions.
Specific to many forex traders, achieving a work-life balance is especially difficult. Unlike stock trading, almost ALL major news can affect currencies. It's hard not to discuss the constant rain in the U.K. without wondering how much it will affect retail sales. Suddenly you may find yourself checking your open position on GBP/USD at 4 o' clock in the morning!
Work-life balance can also get out of whack for those who set up their office at home. The convenience of being able to take naps in your comfortable bed whenever you like can be a challenge. Some days you'll be fighting the urge to take break from the markets knowing that it is open 24/7, and other days you'll be doing all you can to ignore that alarm clock to spend another 5, 10, or 55 minutes in that cozy bed of yours.
Achieving a work-life balance might be difficult, but it's certainly not impossible. Here's how you can get started.
The first step is to prioritize. Determine how much you value your trading over your personal life. Can you check your trades at the dinner table without getting in trouble with your wife? Are you comfortable with rejecting nights out with friends in favor of your trades? Or are you the type who can easily walk away from the charts?
Once you have identified how much trading you want to handle in a day, you should establish a schedule. Make room for your pre-market preparations, your actual trading hours, and of course, your trade journaling sessions.
It's also important to draw the line on when to call it a day. Whether it's the number of your trades, a certain win or loss percentage, or the end of a trading session, you have to know when to stop. It doesn't matter what kind of schedule you make as long as you STICK TO IT.
If you're having trouble sticking to your new schedule, then you could try organizing or participating in activities outside of trading. Join your friends, a book club, sign up for a gym membership or take dance lessons. Anything to get you out of your trading chair!
Again, remember that trading is also a profession. Sure, it requires passion, effort, and a lot of work. But in order to keep you on top of your game, you also have to take a break from it every now and then to rest, recharge and get your focus back.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.