Focus. Taking your trading to the next level.


 

 When you trade, you need to focus. An unfocused trader misses trading set-ups and also takes trades that should never be traded. Have you ever taken a trade and then later reviewed the trade only to say to yourself: "Why did I even take that trade?!"

That is an unfocused trade.

Another sign that you are not focused is when you are reviewing your trading day and see a classic set-up and wonder why you never took the trade. Its because you were not focused.

 I’m trying to take my trading focus a step further to what I call “Deep Focus”. Recently I’ve been thinking a lot about focus. In my own trading and analysis work, I’ve found interruptions to deep focus have led to poor trading outcomes.

A state of deep focus is where you need to be, when you are doing what you do best. Most of the time we are in a sort of shallow focus while we are working. We are getting the job done, but are constantly distracted. This is a state of constantly moving away from your work to check your phone, or chat to a colleague and then back to your work. In this state we never perform at our ultimate best. If we really want to perform at the highest level then we need deep focus.

You can develop the ability to concentrate intensely through training and regular practice.

  • Build some structure by creating an environment that allows you to spend some deep focus time each day. This will train you to hit that deep focus state when you really need to.

  • Replace the constant external stimulation (social media, TV etc.) with something positive, which can help increase your tolerance for intense focus. Read a book, solve a puzzle or listen to a podcast instead of scrolling YouTube shorts.

  • Regularly detox from digital devices to mitigate the impact of attention-grabbing distractions. Get used to going without your phone for longer and longer periods of time.

These are just some ideas that I'm using to train myself for Deep Focus.

A distracted trader is inconsistent. A lapse of concentration can lead to a costly trading mistake or a missed opportunity.

Deep, focused trading is when you are performing in a state of distraction-free concentration that pushes your cognitive and overall trading capabilities to their limit. These efforts create new value, improve your skills, and are hard to replicate. This is how we develop our trading edge. This is how to be a truly professional and consistent trader.

 

Justin


P.S. All you need now is one great trade. Then one great, and so on...


P.P.S. Since originally writing this article, I've made significant progress in the area of "focused trading". Here are some of the things that have helped me considerably:

  • Trade with headphones on. Even if you are not listening to anything, the headphones mute the distracting background noise.
  • Putting headphones on when you start your trading day is a bit of a ritual. Much like a pilot does as part of his pre-flight set-up. Now you are ready for the markets.
  • Delete Whats-app from your phone. This has been a life changer for me. No more spam, no more groups! No more ex-co-worker status updates.
  • If you really can't focus, then step away for a bit and write.
  • Don't have your lunch at your desk. Step away, have a lunch break, come back refreshed and focused.
  • Use a standing desk.
  • Hang from a pull-up bar or a beam (or anything that will hold your weight) a few times throughout the trading day. It will do wonders for your posture, stiff neck and back etc. Within a minute you'll be re-focussed.

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