Do Not Trade When Not Feeling Well

Do Not Trade When Not Feeling Well

Investing requires clear mental thinking. Most people experience different mental outlooks when feeling under the weather. Having a bad cold, the flu, a toothache, headache or a multitude of other ailments can dramati­cally affect an individual’s outlook.

Investing is just like any other activity. There will be times ail investor may not “feel like” investing. Take a break. Getting mentally refreshed is often a crucial aspect for thinking clearly. Investing does not require participating in the markets every single day. Investing should be taking advantage of market conditions when the investor wants to participate in the markets.

There are times when the market is not moving well enough to produce profits that would warrant spending mental time and energy. Often, during the summer, market activity/volume decreases dramatically when everybody is vacationing. Do not try to squeeze blood from a turnip. Go relax, rest up.

There will be times when trades do not seem to work. Positions put on, despite how strong a signal indicates a high probability trade, do not seem to work. Take a break. Go clear out the cobwebs. When you come back after a few days of rest, the analysis process should be clearer.