What is Your Recovery Plan After Trading?

 

What is Your Recovery Plan After Trading?

Many thanks to a savvy portfolio manager who passed along this dramatic account of what professional football players go through to recover from their weekend games.  One of the big points of the article is that the longevity of a professional career is partly a function of the time spent in recovery on Mondays.  Tending to the body after injuries allows for faster healing and prevents those injuries from compounding to the point where they lead to disability.

The principle of recovery is important for all performance professionals, if not so dramatically as in football.  In performance, we push beyond our comfort zones, and that effort taxes us.  A great example is willpower.  When we’ve focused and made critical decisions under pressure for an extended period, that willpower runs out of power.  We become fatigued, and in the fatigued state we’re more likely to make mistakes and fall into old habit patterns that cost us money.

Imagine a person who works nonstop planting grass seed and becomes so exhausted that they fail to water the areas they planted.  We can wind up pushing ourselves to the point where we fail to water ourselves.  We fail to take the time to renew our energy and that takes a toll on performance.

We often hear that traders should plan their trades and trade their plans.  Less appreciated is the importance of plans and routines for recovery.  What are you doing on evenings and weekends that renews you?  Of the four main sources of well-being, which ones are you cultivating in your time away from markets:

Happiness, and doing things that are fun and enjoyable
Satisfaction, and doing things that are meaningful
Energy, and doing things that energize you mentally and physically
Relationships, and doing things that bring you closer to the ones you care about

A good recovery plan should include healthy eating, high quality sleep, and activities that check all four of the boxes above.  

It’s the watering you do at night and on weekends and holidays that allows your career to blossom during the work day.

Further Reading:  A Personality Questionnaire for Traders

My Trading Journal: 30 Day Trading Journal

Published at Tue, 06 Dec 2016 11:49:00 +0000

About the author

TheWire

Online resource for daily updates and information relating to investing stocks, bonds, forex, real estate and much more.