Tuesday, August 20, 2013

The mental discipline of not checking your trades

I'm not sure if other traders experience this problem, but I find the more frequently I check my open trades, the more anxious I become. This is especially true for those trades that take days or weeks to close. It's like an itch from a mosquito bite - you want to scratch but you know you shouldn't. 

I'm not sure about the source of this anxiety. What I do know is if I keep away from my broker or any live charts, that anxiety disappears. But the moment I check my trades or the market, I breath that anxiety back to life. 

Perhaps that anxiety is created because I create an expectation whenever I check my trades. What other reason is there to check your trades except to see how you're going? If your expectation is neutral, why the need to update yourself? There is no need. 

At the moment I have three trades open, so my total risk is at 6%. I was also thinking of keeping a pending order for a fourth trade this week, but realised my exposure may be too high, especially since three of those four trades will involve the USD. Perhaps my exposure of 6% is having a psychological effect. 

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