The Healthy Trader, Part 1

After treating over 15,000 patients and consistently working on my own health over the years, I’d like to suggest a few areas for traders to “get right” with their own health while professionally trading.

Without question, poor health leads to much loss in productivity. I recall reading an article from USA Today years ago with a headline of something like 12 of your 73 years of life will be in ill health. That sounds about right.

Trading is difficult enough on its own, and poor health will significantly disadvantage you in this shark tank. Having a solid trading plan is a must in trading, and having a solid plan for your health gives you an advantage in trading. Trading for a living requires good health containing at least these three characteristics:

1. A clear mind;
2. A vibrant body;
3. Consistent energy levels.

A Clear Mind

Exactly what is a clear mind? It’s one that can focus on what is right in front of it. This involves minimizing distractions, planning your day, and segmenting out your trading day.

Trading is at least 80% mental. If your mind is constantly thinking about another task or topic while you are trading, look out. Professional traders will take your money while your mind wanders about.

If you are overburdened with grief, relationship turmoil, guilt, anger, or any other emotion, do yourself a favor and reduce your trading risk or get out of the markets. When your mind is constantly wondering about repeating the same thoughts you will be distracted enough to skew your perceptions of the markets. And that is exactly what good traders are looking for: the trader who is unfocussed and willing to take the other side of their trade.

Nearly all of us, on occasion, have mental obstacles like those listed above. So is life. Minimizing these distractions will help. Emotional barriers must eventually be dealt with or they will be dragged around with you for life like a heavy suitcase, even though you’re not on vacation.

I’d suggest the book Letting Go by David Hawkins to get this area handled once and for all. This may take a while, but it will be worth it in the long run. The approach described will really set you free.

While you are working on that more permanent solution, just how do you handle any distractions you have right now? I once heard a Navy submarine worker describe how when moving from compartment to compartment, they would seal the prior room off when exiting. This prevented catastrophe if they had a hull breach.

Just like a good doctor can focus on the patient in front of her all the while her son is causing havoc in the household, many professionals have learned to seal off their minds from outside distractions while they progress as a trader. Psychologists call this compartmentalizing.

Soldiers with post-traumatic stress learn to compartmentalize to deal with prior trauma. It’s the ability to seal off distractions in another room while we tackle the task at hand, and for traders that’s making money.

You can mentally close the hatch behind you and seal off anything that interferes with your unencumbered focus on the markets and your trades. After your focused trading is complete, you can then enter another area of your life and deal with it, leaving the trading day behind.

A good way to monitor your mind during the day is simply to set an alert that triggers every 20-30 minutes, then record exactly where your mind was when the alert went off. That will give you insight on how focused you really are on this wonderful profession.

Enuf said.