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A simple way to improve your short-term trading.
✔️A person has a finite attention resource, and no one is capable of engaging in intellectual activity with high intensity for a long time.
Trading is so attractive and exciting that many are able to trade for hours without stopping. Making a lot of decisions during this period.
✔️We are very bad at identifying a drop in the quality of decisions, because losses are not yet a sign of bad decisions, perhaps today was such a market when your patterns did not work and the general view of the market turned out to be incorrect, but you quickly fixed your losses, kept a reasonable position size. Did not fly into transactions, barely glancing at the chart. Usually it seems to us that we are fine and do not feel tired from an interesting task, this is not bad in many areas of work, but not in trading.
A good example in this case is sleep research, which shows that objectively the efficiency of mental activity, the accuracy of analysis and the quality of decisions made with lack of sleep are greatly reduced, but the subjects hardly noticed it. And they were very surprised by the data comparing the efficiency of their work under conditions of severe lack of sleep and in a fully rested state.
✔️ Simply by setting aside 1-3 hours for short-term trading. Moreover, 3 hours will be too much for many. And closing transactions after this period, significantly reducing positions or simply setting take profit and stop loss. You stop staring at the chart and looking for new opportunities and do something else. You will notice how your trading results improve.
A good example is stock market traders who trade only the opening and closing of a trading session, since this is when the main volatility occurs.
✔️ What I am writing about is easy to check. Look at your trade log, you will be surprised to see a drop in the quality of trades on the days when you trade a lot. Pay special attention to trades that are concluded after several hours of trading.
📍Creating a limited time for trading is a feasible task. There are advantages to a constant time, but in a dynamic world where many trade from phones, this is problematic. But introducing a clear time limit for active trading is a simple task that does not require skills and special knowledge. This practice will also significantly reduce the likelihood of getting tilt, because even if you are euphoric from a series of successful trades or you are saddened by a series of losses and are eager to win back, trading time is limited and you will not have time to make many emotional decisions.