​Happy Traders Seek Out Balance

Trading is a challenging business. Only the most skilled traders can make a living as an active, full time trader. Trading experts suggest that novice traders approach trading the same way that students pursue their vocation in professional school, which requires a resolute dedication to sharpen their skills in order to move to the top of their field.

The seasoned, professional trader has rare and valuable skills, like those of a lawyer or a doctor. You have to limit your social life and focus on developing your skills if you want to be at the top of your class.

Think of the interns and residents at a hospital emergency room, or the law students on a crucial case. They focus all their efforts on learning about their profession, even if it means sacrificing their social life. During the learning process, it requires a life with little balance between work and pleasure.

Is it a good idea, to be so unbalanced? It depends on how you define happiness. For some, the heavy upfront price is worth what they get for the rest of their lives.

The trick to paying a heavy price to achieve success is to enjoy the process as much as you can, and try to maximize your positives by readily dedicating yourself to the goals that are likely to be rewarded. This approach can be true for trading. It's important that you enjoy the process of trading, but should it be the driving force in your life?

Maybe not! I believe it's important to always have a life.

Many novice traders work under the assumption that because they're putting their money on the line to pursue trading, they should give it their all. Is it necessary?

A study was done in which a group of traders were asked to fill out a questionnaire regarding their emotional mood. The sample was divided into happy and unhappy traders, and a comparison was made. Compared with unhappy traders, who reported a tendency to feel disappointed, frustrated, and discouraged, happy traders reported that they enjoyed the process of trading. They liked the intellectual challenge trading provided. They enjoyed learning about how companies made a profit. They enjoyed learning about new strategies, and enjoyed learning about how people made money in the markets. These responses are consistent with my suggestion to "enjoy the process."

When asked if they allowed their personal relationships to suffer as a result of devoting too much time and energy to trading, the answer was "No."

Happy traders were clearly dedicated to improving their trading skills, and enjoyed doing so, but they didn't allow their relationships to suffer as a result of their dedication. This is a valuable lesson to learn: Pursue trading earnestly, but also seek out psychological balance. Don't think that trading must be your whole life. Spend time with family and friends. That's what happy traders do.

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