We all get distracted at some point of time or other, be it the daily chores or other time-consuming tasks. Especially if you’re a trader, distractions can literally make you lose money!
We all know about coronavirus and its aftereffects on our daily routine. The lockdown has made people trade from their homes instead of offices. Although a lot of day traders trade from their home only. The main concern arises when while deciding on the strategy that you want to take up the trade with, your mind wanders of to another task. Don’t worry if it happens to you, as this is a common problem that many of us day traders face and although there is no proper solution to it.
Go into total lockdown. Literally.
We did a survey in the past on how to concentrate when reading a chart. Apart from all the answers that suggested that one should keep a clear screen and avoid all drawings/indicators or keeping the background white and so on, the one answer that really got our attention was meditating in a quiet environment for 5 mintues before you continue reading the chart.
The approach is highly effective in case of trading too. Sitting in a quite environment with 5 minutes of ‘eternal’ relaxation, helps the mind keep calm. This way there is less chance of you ‘jumping’ straight into taking up trades in hurry just ‘to be done with the day and the trade’.
Put your mobile phone on airplane mode
This is a money-making business. If you could just keep your phone on mute or better on aeroplane mode then the world wouldn’t end! This applies to not only trading but only on other activities which require you to stay focussed. Keeping your mobile phone on silent mode means no notifications, no surfing social media, not checking out any recommendations or buy/short calls on telegram. Even if you make a loss in that trade, you’d be 100% satisfied with the results because you’d have gained an authentic experience.
Have a distraction recovery plan
Let’s assume that you are expected to be distracted. No matter how many precautions you take, there’s always something that you’re going to get distracted too. A simple mind trick is to have a recovery plan all set in place. Notice that these are all hacks to control how your brain works and it is important to keep control of what you can take care of! As after taking a position, you’re only left with a hope that you’re target is achieved.
So, after the event (which got you distracted) has taken place, go back to your screen and before taking any actions, just relax and try to remind yourself from where you left off.
For example, for me, I usually look at the chart patterns that I was working on and revise the strategies that I had in my mind (check my positions too if I have any). Once I’m done with it, I look at the stock watchlist one last time and look at the possible support and resistance areas. When I’m confident about my strategies then only I initiate a trade.
Not only this will help you be in control of the situation, but it will also help you to not do panic trading and then fearing over the loss that you’re making.
So there you go, having a distraction recovery plan is a must if you’re sitting at home and doing intraday trading.
We hope you like this article and try to implement it the next time you take up a trade.
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