There are times when there’s absolutely no boredom in trading but there are long periods when there’s no movement at all or your trading plan doesn’t allow opening a new positions.
Other moments can actually be extremely exciting. The rush we get when we see a position become profitable is quite remarkable. The despair, anxiety and nerves we experience when things aren’t going so well are also quite strong.. and the swings between the former and latter are akin to your team coming from behind to win.
But how can traders overcome the boring bits and reach the interesting ones without making rash decisions and mistakes?
First you have to keep everything in perspective. If you do enter a position without preparation, just in search of some excitement, that means you’re doing something with a 50% chance of success (lack of preparation doesn’t mean your chances are below 50%).
But this is something more like gambling, not trading.
You can go for news events or trade at the beginning and/or start of trading sessions just by looking at where the price is going after some piece of news and riding it for a while. But news and surprises are very often received with mixed and delayed reactions by the market, creating swings in one direction first and the opposite way quickly after that.
That’s the environment where stop losses get hit on both sides of trades because emotions are ruling the market participants, not the real underlying reasons for a change in price.
The second thing you have to remember to manage boring periods is that these same periods are part of the plan.
Having a routine and analyzing markets, filtering bad levels and mistakes is part of how trading should be performed.
It’s a day-to-day activity and looks more like a grind compared to the aggressive and rage-filled world of the Wolf of Wall Street or Rogue Trader.
That’s the way to profits, not to excitement. You can choose which one you prefer.
The third and final thing you need to tackle boredom is that you can actually improve your trading during the low volatility periods.
There are tons of articles and educational resources, like the one we have for Elliott Wave or Trading Basics, that can improve your overall level.
If you’re concerned that you’ll miss out on a good opportunity then set alerts through your platform that will warn you if an instrument is at a certain price.
You can actually place them at a level nearby, so that you have enough time to react and make a calm decision.
And that’s how you can overcome boredom in trading: keep your eye on the prize, which is profits; stick to your trading plan and always try to improve your strategy by studying different approaches to the market.