Efficient Time Management – Turning Trading Professional Part 1

Trading Binary Options 24 Hours a Day

When you come to think about it, trading is going on all around the world 24 hours a day. The Asian markets are already open while some Americans only go to sleep. When they wake up, the Europeans are already half way through the day. There’s so much trading going on, no individual has the ability to keep tracking all this phenomenal activity. While some gifted individuals adopted trading as a full time profession, most of us only trade in our spare time. When these traders go to work early in the morning they trade, that’s what they’re hired for, that’s their life. They are well qualified to the trading job, which includes responding to various events simultaneously, and they react according to these changes under pressure. Most newbies I know always brag on how they could’ve been much better traders then the ones doing it as a profession, they are smart people indeed and I truly believe them, nevertheless, they seem to complain too often about their silly mistakes. They can open their trading week in a storm, but then lose it all later. They’re always performing the right actions, but suddenly they fall. They turned to Binary Options trading because they are no less good traders, they have  the potential and they show it, it’s just that in the long run – professionals stay on top.

 

 

Part Time Traders and Professional Traders

Let’s think about the similarities between us – part time traders, and the professional traders who do trading for a living. For this discussion, let’s assume that unemployed individuals who trade for a living, but not as certified professional traders, are professional traders. Just for the record, I would like to add that I don’t believe any person who has a regular job should quit his job to become a full time trader. Too many people actually ask me that question; “Should I quit my job?” “Can I make a living out of binary options trading?” etc. This is driving me crazy. If the question even pops out, you’re not ready for it. If you know the answer, I won’t be the one to stop you, neither to pick you up if you fall. Back to similarities. We are all good traders in potential, we are all smart people, and we could all succeed. That is the reason why we are trading. But that doesn’t make us professional traders. We could all learn trading, from tools to strategies, practice all day and finally get used to it. We all understand basic events and their effects on the markets; we can all handle the pressure. Yet, that’s not full time trading. The most basic difference between a full time professional trader and a part time/newbie trader is that the professional does it for living. If his trades are off track, he could lose his job. We part-timers might be losing some extra cash, we might lose and forget about upgrading our second hand car or go out only 2 times this week, but our lives would keep on going. If you’re a part time trader and you’re trading with your rent money, you’re in the wrong business mate. Stop now before you lose it all.

 

There’s a big different between what we do as a hobby and what we do for a living. The lucky ones among us are those who work doing what we like, most of us would just have to keep doing their hobbies on the evening or on weekends. Unfortunately for us traders, there’s no trading on the weekend, so all the time we have for trading is early morning or on evenings, some of us even wait until late night to trade. Professional traders, when they wake up, start trading and keep trading until the day is done. Then they trade again. They trade out of instinct, just like a doctor treats a patient or a chef makes his dish. We part time traders only have a certain limited time-frame to try and fulfill our dreams of getting rich, yet it seems like we try too hard. Instead of generating profits in our spare time, lots of newbie/ part time traders suffer losses. It’s not the quality or potential of the new trader, it’s the uneven equation between expectations (=profits) and resources (=time). I decided to exclude money in the resources side since I don’t see any real difference between the money available for full time traders and part timers. The major difference between those two types of traders is time. We don’t have as much time to trade as the full time traders do.

 

 

Trading in the Age of Globalization

Time was never in our favor, neither is it when it comes to trading. When a full time trader who lives in London goes to work, the Asian markets are already half day finished. After his lunch, the American markets open up. He has the whole day to monitor worldwide events, and to use this information to enhance his trading. On the other hand, when an American part time trader finish his daily job at 5pm, the Asian markets are almost closed. Europeans are getting ready to close and the American markets have a few hours remaining. These time differences limit his trading time frames and therefore limit his resources. That’s the point where the proportion between expectations and resources lean towards the expectations side, causing much disappointment for newbie traders. Unfortunately for us part time traders, we cannot create time, we must make the most of the time we have. How do you do that? Simple. By adopting habits and methods, creating natural instincts for a limited time frame and setting the expectations to correctly match our resources. 

  

Time Management is the key. Better and more efficient time management could eventually turn losses to profits, turning sloppy traders into consistence performers. When time is limited, the only possibility is to make their trading more effective. Just like farmers use better fertilizers and more modern agricultural methods on their crops to increase production, we could make our trading hours more effective by managing it better. Also, another positive side effect of setting up specific trading hours is limiting the variety of assets being traded which eventually should turn into you specializing on certain assets, hence better decisions by the trader. To conclude, time managing is no less important than any other aspect of trading, if not more important. Manage your time right, make better decisions.

 

 

 Further Reading:

 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: +22 (from 22 votes)