InvestorQ : I keep my home and work apart. Will my personal life still impact my trading?
Moii Chavate made post

I keep my home and work apart. Will my personal life still impact my trading?

Answer
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swati Bakhda answered.
2 years ago


Try as you may, it does intrude into your personal space. And it impacts your trading performance too. It may not be obvious, but at a subconscious level, it does have an impact. As much as we may talk about creating silos between our personal lives and our professional lives, it is highly impractical to expect that happen in reality. Irrespective of whether you are trader, a sportsman or a stage performer; your personal life does spill over into your professional performance. That is the reality you cannot escape.

Here are five ways in which your personal life spills into your trading performance. Firstly, it forces you to make decisions in the wrong state of mind. This is especially dangerous when you need to make critical trading decisions. As if that is not bad enough, your personal life and personal problems tend to de-focus you from your core trading activity and that is not great news. Thirdly, you lose the ability to critically evaluate the opportunities in the market with an unbiased approach. Fourthly, trading is a game of multiple regressions. At any point, there are multiple variables that are impacting the market in different ways. It is largely a game of concentration as you are talking about multiple variables, understanding the combined impact, protecting your capital, enhancing your returns etc. A clear mind is a must. Lastly, many personal problems also have large financial implications, especially divorces and medical challenges can be quite taxing. That also can substantially impact your trading decisions. To be a good and successful trader, make your life a pursuit of happiness and not a pursuit of pain.