I had no idea what was going on

… and it was great!

I only returned on the weekend from a wonderful 2 month family holiday in the USA.  I won’t bore you with all the details but it included a 7 night Caribbean cruise, a month in Florida at theme parks and beach houses and a week in NYC.

The best part?  I didn’t look at the markets once!  Yes, I just switched off.

Not sure what I have missed yet.

I couldn’t help hear about the Brexit vote and subsequent market response and obviously I have come home to a federal election which remains undecided.

Take a Break

I mentioned the importance of taking a break after my trip to the Maldives late last year – I think it is really important.

There is no doubt that trading can often have a taxing effect on your mental health. You are constantly faced with decisions that need to be made and can easily go through a swing of emotions.  Some of you may also lack confidence in your own ability to trade well or lack the courage of your own conviction and therefore experience another array of emotions when trading.

Sometimes trading can be quite stressful and other times it may appear as if you can do no wrong. These emotional swings and emotional stresses do impact on your mental state and can ultimately affect your trading decisions.

I believe that it is prudent to sometimes schedule a break from trading. In this case, you would close all positions before your break or, for a few weeks out from the break commencing, open no new positions and allow your open positions to take their course in the time leading up to your break.

I certainly enjoyed my break immensely!

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.