Simple Practical Strategies to be a Happy and Successful Trader – Introduction
Why do you trade? To make money, right? Yes. Me too. But, the bigger reason why we trade is to be happy. We want to afford everything. We want to take our kids to the best schools, afford the best medical care, live in a good neighborhood, and drive the best cars.
However, the truth is, most traders are not happy. They don’t live a happy life, despite making all the money. In fact, a report by The Atlantic found that while most in Wall Street were paid well, most of them lived miserable lives, full of stress and emotional torture.
In this article, I explore this topic and how you can be a happy and successful trader.
- Hire the best traders for your office
If you run a trading floor, the key to achieve happiness is to hire the best traders. They should be people who are experienced and who share your desire for the floor. Doing otherwise will be the worst mistake you will do. The worst mistake because, these people don’t share your vision. They are not inclined to think the same way you do. Therefore, I recommend that you take time to hire traders who are not only good in what they do, but those who share your vision. In this, I recommend that you do the hardest thing any manager can do: fire any trader who shows no interest in achieving your goal.
- Have a well-defined trading strategy
To achieve happiness, I recommend that you have a trading strategy that is well-defined. This should be a strategy that you have created, tested, and made sure it works. By having a good strategy, chances of not being happy trading will be limited. This is because a good strategy allows you to trade and make money and when a trade fails to work the loss you take will not affect your trading.
- Expect the worst
A rule that has made me live a happy trading life is one on always expecting the worst but hoping for the best. In every trade I initiate, I always hope that it will work out fine. I always hope that I will profit. But truth is, this is not always right. Even the ‘best’ traders always make mistake. I can mention many examples but let me mention two. Bill Ackman, one of the leading hedge fund managers recently closed a stake in Valeant that he lost $4.4 billion. David Einhorn has placed a short on Amazon. Today, he has lost millions. Therefore, always, expect the worst and hope for the best.
- Take your time off
Another strategy is to achieve happiness is to avoid the pressure. Trust me, the financial market can be challenging. It can also present significant pressure in your life. To ease this, I recommend that you take your time off. Mostly, I usually recommend that you do this during the weekend when the market is usually closed. You can take this time to spend time with your family, hang out with friends, or travel the world.
- Always learn from the past
To achieve happiness, you must always be open to learn from your past mistakes or successes. As a trader – or in any profession – the rule is that you should always learn from your past mistakes. If you don’t do this, chances are that you will repeat the same mistakes. And of course, you can’t repeat the same mistakes and expect a different outcome.
Therefore, I highly recommend that you follow these simple and practical strategies. Doing so will help you achieve the financial and emotional success you yearn for.
Simple Practical Strategies to be a Happy and Successful Trader – Useful Links:
- Another interesting reading on TheBalance;
- For further information, please, go to FXCM;
- Visit Forbes to discover more information on the matter.