Most new traders dismiss the importance of maintaining their mental capital. Solely focusing on the PnL is merely half the trading battle.
Oddly enough, earning the capital is one thing, holding onto it and actually growing it, is an entirely different beast all in its own.
This part of trading is not as “rewarding” on the surface, but is far more important than your daily PnL in the long-run.
One of the simplest ways a trader can re-charge their mental capital is to simply take a break from the screens. This break could be as little as an hour or as long as days/weeks; we wouldn’t recommend months, as this amount of time can throw you off the flow of the markets.
It’s very easy to get caught up in the moment of a trading session. But traders must not forget that a simple break from the screens can actually help their trading in the both the short and long run.
During these breaks, do something that allows yourself the ability to press “reset”.
We’re big advocates of meditation. Calming your thoughts and focusing on just your breathing will bring a sense of peace that will inevitably flow into your trading. This is something you can do on a daily basis to maintain a solid mindset, which translates into constant flow; aka – staying in flow.
Trading is a very unique profession, in the fact that just because you show up for work, you are not guaranteed a financial reward for your time; at least not immediately. Some have a really hard time accepting this harsh reality, and for those, this path may not be suited.
When you truly understand this reality, taking the necessary mental breaks throughout your trading career become second-nature and actually become welcomed.
Besides the basics of meditation, exercise is an amazing way to re-charge your mental capital. Aside from the physical benefits, through the release of endorphins, exercise naturally relieves tension and stress that a trading session(s) can bring. After a solid exercise session, it’s only natural that you’ll feel a sense of accomplishment; which boosts confidence that can further translate into a more focused trading session.
Mental strength is unbelievably underrated when it comes to peak performance. If you want to trade at the highest level, it requires you to operate at your very best; at your peak.
This is a serious business, with serious life-changing results.
With this in mind, use all the tools at your disposal to give you an edge in the markets. And one of the simplest tools to use, is taking the time to re-charge your mental capital in order to perform at your very best.
It doesn’t matter how you do it; be in meditation, exercise, etc. – find a way that works for you and build the discipline to follow it.
Members, we’ll be going deeper into this concept on our VLOG.