Finding the right space to trade
Many of the blog posts that I’ve written have focused on the mind set for trading or the emotional impact that trading can have on a person. However, there is another thing that I think is relatively important, that I’ve only touched on once: the environment in which we trade. I believe it can have a profound impact on our trading results. I’ve mentioned before that I’d spent a few days at home trading in isolation and that those three days were really profitable days for me. This got me thinking that we often place a lot of emphasis on how we should think while we are trading, although never really give much thought to where we doing it.
Everyone will have their own type of space that works for them. For some people the right space is at home in their pyjamas, while for others it may be in a coffee shop from a mobile device or in a loud and energetic trading room with a bunch of other mad pirates all trying to squeeze some money out of the market. Many of us though, give it no thought at all. We just kind of trade from wherever is most convenient… the office, at home, in the car on the phone to our broker, wherever we get the time and access to the information we need.
This is the dream that is sold to us by relentless internet marketers and TV ads that promise us nothing but profit and babes, and lately, a spot on a soccer team. It’s ridiculous. Anyway, trading is about structure and rules, routines and habits. If we are constantly trying to trade in an environment that is not conducive to focusing on the ‘now moment’, then of course our results will be less than optimal.
I think each person needs to think about the circumstances that they are able to focus the most under, and make an effort to restrict their trading to when they are in that particular environment. I know that I get distracted super easily – I’ve learned how to block out a TV pretty well if it is on a news channel, but I’ll be damned if that TV is on any other sort of channel. I’ve learned that I need an environment in which I am in complete control. Essentially I need isolation.
This is not true for everyone of course, but this is the type of space I find works best for me. I would suggest that each person gives some thought to the environment they need to be in, in order to be able to completely focus on the ‘now moment’, and try to restrict their trading to when they are in that particular environment, to see if it has any impact on their trading results. You might find that restricting your trading to those particular places only may help you with building the routine required as well as improve your discipline. It may not make a difference to some, but it is worth a try I think.