Trading After a Holiday

Honestly speaking, it can be hard to come back to work after taking a holiday. Even though trading is my hobby and I wouldn’t classify it as work per se, I do admit getting back into the swing of things can sometimes be difficult for me, especially if I have been away for a while.

Like most people, I prefer to work to a routine since it helps me organize my day and put my time to good use. Although holidays are a welcome break, being away for an extended period makes it hard for me to transition from a routine of rest to one where I am focused and ready to take trades. What are some of the steps I use to prepare myself for trading after a holiday?

Firstly, I have to ensure that I am switched on and ready to apply my strategy to market conditions. What this really means is that I have to be in the right mindset. If I do not do this, often I find myself easily distracted and unable to focus on trading. On my first week back, it helps for me to build up to the total amount of time I spend trading e.g. if I normally spend 3 hours each day scanning the market and planning my trades, I will ease into it by dividing the time into 1 hour blocks and taking regular breaks away from my desktop between each block. I will do this for a week or until I feel I am using my trading time efficiently.

Another thing I do upon returning is to resume as many tasks in my trading routine as quickly as possible. I have a set list of tasks for my trading week; for example I download and check the Economic Calendar for major news releases every Monday and I review my trading strategy and trades taken at the end of each week for areas of improvement. The sooner I get back to doing these individual tasks, the sooner I feel comfortable taking calculated risks with my capital.

Lastly, I expect things to take slightly longer and I don’t give myself unnecessary pressure! Elite athletes will tell you that the key to sustaining high-level performance is to WARM UP. Likewise, the key to trading at an optimal level is to only trade WHEN you find high probability set ups that fit your trading strategy. I find it takes me longer to spot such set ups after I return from a break. Maybe it’s because I’m still in holiday mode, or maybe it’s because I need time to study price action and get up to speed with what’s been happening in the markets. In any case, I practice PATIENCE (and it’s hardest for me to be patient with myself!)  

Rome wasn’t built in a day so don’t expect to remember everything right from the get go. The main thing to do is to keep at it and demand excellence. Who knows, it might be exactly this attitude that keeps you in the game and pays for your next holiday!

Happy Trading!

Regards,

Karen Chow
The TWP Team