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The life of a trader is filled with ups and downs. When things are going well, you feel great, but it can really take a toll on you emotionally when times get tough. This week, the Topstep coaches are once again joined by long-time professional trader Carol Jorissen to discuss some of their best practices to avoid burnout as a day trader.
We’ve talked about trading “both sides of the market” quite a bit in the past. What we mean by this is the ability to reverse a position multiple times throughout the day; going from long to short and also going from short to long. Successfully day trading on both sides of a market requires a keen perception of what’s happening in that particular market as well as near-perfect timing. The trick is to NOT fall in love with any of your positions. It’s a very “reactionary” trading style, and you have to be able to get in and get out with very little warning.
The best time to trade both sides of the market is when a market is range-bound, which is happening right now in the equity index futures. If you can identify periods when prices are moving sideways, you will open yourself up to a whole new realm of opportunities.
And so, this week’s coveted funded trader shoutout goes to Mohammed W., who has been able to take advantage of the smaller swings to book a solid $1,500 trading day in the E-Mini S&P 500 and E-Mini Nasdaq-100 markets. That’s what happens when you embrace the chop!
When first getting started as a trader, a lot of people really don’t think about the possibility of getting stuck in a rut, that is, until the rut is staring you right in the face. So what do you do to avoid burnout when you sense it’s coming?
The coaches talk about finding a community of people who understand what you’re going through because they have gone through it themselves. It’s also beneficial to sort of getting a second set of eyes on the work you’re doing. Feedback from someone on the outside looking in might be just the thing you need to make some positive changes and get you back on track.
It also doesn’t hurt to take some time away from the markets. Rest and re-evaluation are two things to take seriously. Trading can bring out every emotion through the course of a single trading day. Hence, when the time comes, it’s important to recharge both emotionally and physically.
Stubbornness and an unyielding bias are not rewarded often in this business, so try to keep an open mind and surround yourself with a community of people who can help you through the tough times.
Trade Well!
