Traders are constantly bombarded by a lot of information– radio, TV, Internet, Social Media, etc. Books, different trading strategies, trading gurus, information in all kinds and forms radiates from everywhere. One of the greatest obstacles for traders is to be able to turn themselves into successful Zen traders. How do we accomplish that really?
Does less information help traders become better?
Based on the thoughts above, one can ask the question- what is more important- to be well-informed, so you can make a better investment decision; or too much information can hurt your trading performance. There is some truth in both statements. You need to be well-informed to make the right trading decision, but at the same time should not be constantly switched on and distracted by different medias. Maybe you should make a plan of how to minimize the constant flow of information by creating your own rules. As an example, you can use the schedule below:
Keep Two Lists- one with “To Do: Urgent” and a second list with “To Do Long-Term“.
Do your main trading research between 6-8am, and then try to minimize your exposure to a minimum.
Try to not switch on Social Media on Saturday and Sunday.
Try to use social media and other information channels no more than 2.5 hours a day.
Use a diary and write down all of your goals every morning.
Many times I have written about trading and that it is one of the hardest professions you can pick. You are in a losing trade and you can’t take your eyes away from the screen. You are supposed to not break your rules, but it is so hard. Before you realize it, you have closed you position just before it reverses back and hits your target. Another likely scenario is, you are too impatient to wait for a retracement and open a long position before realizing how impatient you are. Obviously, price reverts (it always does) and then you panic and instead of holding on to your trade, you take a loss. It is often, much easier to write about those matters than do them, but when it comes to discipline, you should stick to your rules. Nothing is more painful than betraying yourself and your own principles.