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AN INSIGHT
TO DAY TRADING

HOW TO IMPROVE FOCUS IN DAY TRADING


Focus illustrates the gateway to all thinking: perception, memory, learning, reasoning, problem solving and decision making. Day trading requires mental fitness and without focus, all aspects of the ability to think will suffer. Traders will not be as effective in their trading sessions because if one does not concentrate on the essential things or is distracted performance may not reflect the desired results.


Therewith, the key question of how to improve and maintain an ideal focus during the day trading sessions that results in high performance and efficient behaviour emerges.


DECLUTTER YOUR MIND

A cluttered mind cannot focus. If the mind is wandering around things that need to be done today, tomorrow or should already have been done yesterday it will be difficult to focus on the actual task – especially during long waiting periods when patience is required and the mind is searching for distraction due to the upcoming boredom. Prioritise and structure the day instead. Have time slots for the various daily tasks and a separate time slot for day trading where the focus is on the specific task. Clear the mind of anything that is not directly related to the actual task and remain focused in that moment. Do not allow the mind to wander. The less cluttered the mind, the better will be the focus.


DECLUTTER YOUR WORKSPACE

A cluttered workspace illustrates a space full of distractions. Notes, books, photos, various pens and a mobile phone that is constantly awaiting notifications take the focus away from what is important in the current moment. In order to better focus, unnecessary clutter needs to be removed. A clean and tidy workspace provides less potential for distraction and reflects a clean and structured mind.

MASTER YOUR TECHNOLOGY

Technology contains one of the greatest distraction potentials. Computers, tablets and smartphones constantly signal incoming distractions – newsletters, voice messages, social media updates are just a few of them. Those notifications should be reduced to a minimum and should be made unavailable especially during the day trading sessions. Smartphone and tablet can be put to airplane mode to cut oneself off from the largest distraction potential.


MIND THE 4P'S

Generally, the improvement of focus can be achieved by following the 4 P’s.


· Perform

· Process

· Present

· Productivity


First, it needs to be considered what is required to perform best in order to create an environment that reflects the ideal conditions allowing optimal performance. Second, it needs to be focused entirely on the actual process that needs to be followed to complete a high-quality outcome. Third, it requires to be present in the moment focusing on the here and now rather than what happened in the past or might happen in the future – trade what you see in the now. Fourth, it needs to be evaluated what supports productivity. In day trading productivity is rather supported a clear plan, structured mind and patience respectively blocking out distractions. It does not implement executing as many trades as possible or handling a big work load as efficient as possible.


Focus in day trading can be improved by organising the own mind and surrounding environment as well as blocking out distractions. It is key to developing habits that support those conditions to be both effective and efficient during the day trading sessions resulting in an overall better trading performance.


TRY THIS FOCUS EXERCISE

In an article published by Harvard Medical School Neuropsychologist Kim C. Willment suggests a single task exercise like reading. "Read something for 30 minutes, setting a timer to go off every five minutes. When it goes off, ask yourself if your mind has wandered. If so, just refocus on what you're reading. By training your brain to monitor if your mind is wandering, you strengthen the monitoring process and the ability to maintain focus on a single task."