How to Tune Back into the Markets after Time Away from Trading
This article explains exactly how to tune back into the market after you have has some time away from trading. The hope is that you are fully prepared for trading and to ensure that you are not missing anything that may have changed in the market environment during your time off.
In this Article:
- Why Take Time Away from Trading?
- How do you tune back into the markets after time away from trading?
- What are the exact steps you should take when trying to catch up on the news?
- Concluding thoughts.
Why Take Time Away from Trading?
For us traders our job is to keep our minds fresh so that we can be tuned into the markets when we are trading. Keeping fresh helps our minds to focus and understand what kind of market environment we are currently trading in.
In order to keep fresh there are a few things we can do every day and there are some things we can do a few times per year.
During your day to day you can make sure that you have a solid exercise routine and eat a healthy balanced diet. I think we all understand this.
But sometimes you need to take more time than just sleeping or a gym break. Time to go on a vacation! Getting away from the screen and the flow of information can have a really positive impact on your trading when you come back.
Go hit the beach, have a few beverages, take the wife on that holiday you’ve been promising and just get away from the markets. Have some fun why don’t you! Doing this can help you reset your batteries and reinvigorate you so you can crush the markets and not be as stressed out.
How do you tune back into the markets after time away from trading?
What I like to do is go to all my favourite news sources and start scanning through headlines that have a lot of buzz around them.
ForexLive has great session wraps that they do after each trading session (Asia-Pacific, London, and New York sessions). I like to spend a few hours going through those because they give you a feel for the overall tone of the market and what were the major things to hit in that particular session. This give me great insights for sure.
I also like to hit Bloomberg for the big picture. These articles are not as timely as ForexLive but they tend to go into more depth.
I have listed what I think are the best free sites are below:
I also use a premium service called Ransquawk. They have a team of analysts that do a weekly wrap up that gives me the overall feel for the major events that were driving the market during the time I have been away. If you have the cash they are definitely worth test driving.
What are the exact steps you should take when trying to catch up on the news?
- Read the main headlines on Bloomberg to see what has been going on the past week or so. After that head to ForexLive and check out the headlines and session recaps. The homepages for these sites will tip you off to the most important things that have been strongly impacting the market recently. You are just trying to get a general overview of the most impactful events that you missed while away at the beach.
- Now that you have scanned the headlines go have a read on the articles that seem to be the dominating theme. The key is to only read the articles that seem like they are causing the most buzz. This is what the rest of the market is going to be focused on and therefore you should know what they know.
- You should have discovered a couple currencies that have been moving because of the news. Now it’s time to go check out the charts of these currencies and see how price reacted to the news. This will help give you a feel for the market sentiment around these currencies.
- This is an optional one but highly recommended. If you have traders around you that trade in the same way it would be a good idea to chat them up to see what the main things that they have been focussing on while you were away from trading. You might get some good insights into the trading environment.
- Rinse and repeat until you are comfortable with your knowledge and feel good about starting to trade again.
There is nothing scary about getting yourself set back up for trading after taking some well-deserved time off. You need to take time off to recharge your mind and spirit. I always find that by the 5th day of vacation I start to get the itch again. By the time I am actually back at my desk I’m excited and ready to get back to it. This is usually not the way I felt before taking the time off.
The most important thing is that you get back in tune with the flow of information and ease yourself back in at a pace that makes sense.