You can be highly motivated to trade, have abundant capital, and a dummy-proof trading system, but you can still encounter losses if you fail to concentrate.
Even had a hard time working in a crowded Starbucks or studying in a noisy library? It’s easy to concentrate when we are in a quiet room or when we feel calm and at ease, but the markets are often chaotic and trading can get stressful.
When you aren’t fully focused on your open positions and trading strategies, self-doubt can creep into your consciousness. You may start having second thoughts that can wind up sabotaging your trading efforts.
The more you can stay focused on your ongoing experience, the more you can trade effortlessly and skillfully. But how can you concentrate more easily?
1. Take good care of your health
First, it’s useful to remember that concentration takes psychological energy, and this supply of energy has limits. If you want to maintain your focus, you must be rested and relaxed.
Get proper sleep and nutrition. If you’re tired or hungry, you won’t be able to keep your mind focused on trading.
2. Be mindful of your stress levels
Second, it’s important to be conscious of your stress levels since this can deplete psychological energy.
The best way to limit stress is through risk management. If you know that you are doing your best to keep potential losses to a minimum, you’ll feel more comfortable and can focus most of your attention on trading.
3. Optimize your trading space
Now this is particularly applicable to those who are trading from home. Even if you are just starting out, you need to invest in a space that doesn’t involve trading from your bed or the same dining table that your kids just spilled their spaghetti on.
Since you’ll be dealing with the same markets that office traders are battling with, you’ll need to establish an OFFICE space. Make sure it doesn’t have too many distractions and that you have a fast internet connection and enough monitors for you to watch the charts and track the news.
Concentration is essential for profitable trading. The more you concentrate, the more you feel you are in control. And when you feel your body and mind are in sync with the markets, you’ll likely find it easier to trade consistently and profitably.