Friday, April 13, 2012

"The Value in Getting Away: A Subtle Lesson of Stocktwits"


Being a relatively new trader with only a handful of years’ experience I’ve attempted to learn the business in a wide variety of forms. Whether it be academic and theoretical ideology, “Security Analysis”, Livermore, O’neil etc, I have at least considered most of the frameworks.  However, one area of the business that often goes without discussion is mentally removing oneself from the trading.  As a young trader trying to develop a concrete strategy, it is easy to become completely mentally immersed in trading. Prior to my encounters with Stocktwits I had overlooked the importance of completely removing myself from the business on a recurring basis.

In addition to providing great value in terms of idea generation, one of the more subtle lessons of trading presented on the stream is the mental game of trading.  Although Mark Douglas does an amazing job discussing the psychology of trading, there is limited literature on the importance of detaching yourself from trading.  In following traders such as @gtotoy, @jfahmy, @daytrend, @howardlindzon etc I’ve observed the value they all seem to place on “getting away.”

@gtotoy is among the most consistent and transparent traders on the stream in my opinion. In following him, I’ve noticed he regularly discusses the joy he gets in getting away regularly. I’ve observed @daytrend discussing that by the end of the week traders should be mentally exhausted and in need of getting away (like making a killer BBQ that makes me hungry every time). @jfahmy has always provided comic relief throughout the week on the stream. While @howardlindzon adds to the Instagram valuation by posting his feet on Coronado Beach.

Since I’m not a fan of preaching I will wrap it up quick. I think it is easy to become completely immersed in this business, especially as a new trader. In following more experienced traders, I’ve learned a subtle lesson that it is not widely discussed. Having the where with all to escape is important for traders of all levels and skill sets.  This is not to say working hard is not a good idea. I’m sure I can speak for most in saying that trading requires a significant time commitment; however it cannot and should not be one’s end all in my opinion.

No comments:

Post a Comment