As we have explored throughout this month's articles on the theme of "Trading Routines", trading routines and rituals are constructs we can use to cue attention, mobilize motivation, increase confidence, improve focus and situational awareness, and prime performance.
Given how powerful routines can be let's take a second to consider how best to construct them.
Routines are essentially a set of habits. Whereas habits are a conditioned set of behaviors that have developed over the repeated reaction to a particular cue.
It's important to note that habits in themselves are neither inherently positive or negative.
For instance, it's just as easy to develop good habits as it is to develop bad habits.
So what's the key to developing good trading habits?
“Excellence is an art won by training and habituation: we do not act rightly because we have virtue or excellence, but rather have these because we have acted rightly; these virtues are formed in man by doing his...
As we announced in last week's newsletter, this month's trading theme is "Trading Routines".
This week's lesson comes from our "in-house" risk expert - certified risk manager and frequent contributor, Michael Toma, who shares some perspectives on the power of routines and the benefits of triggers in cueing desired behaviours and actions.
Given all the things you can’t control when trading, I guess it’s only fitting to cram in all the things you can control - our actions, tools, strategies, and of course, our crazy routines.
I’ve heard some wild ones throughout my career but in the end, it’s the trader themselves who is comfortable with their rituals supported by endless belief in its value.
Can these routines we praise actually trickle down to make us more successful?
When the topic is discussed at our upcoming meetup on September 19, I’m confident there will be at least one routine that each attendee follows...