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Too Much Screen Time Can Kill Your Forex Profits

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Sabotaging Forex profits

Everyone wants to talk about money management when it comes to trading Forex. But what about time management? How you spend your time as a Forex trader is essential to your success. It can mean the difference between finding consistent profits and struggling.

Where do you spend most of your time as a Forex trader? I’m not talking about vacation time in Fiji or the Caymen Islands. I’m talking about how you manage your time identifying trading opportunities, managing open positions, etc. In short, how you spend your time working on your craft.

Time management is important in all aspects of life, however I’ve found it to be most important in the world of Forex.

Why is that?

Because poor time management skills when trading Forex can cost you money, and lots of it!

If you find yourself starring at your charts for hours on end, that’s poor time management. And guess what happens when you do that? You make silly, emotional mistakes that can cost you thousands of dollars or worse, lead to a blown trading account.

That’s a costly way to spend your time in my opinion.

In this lesson we’re going to discuss the importance of proper time management when it comes to trading. I will also share with you how I broke the bad habit of too much screen time in my early days of trading Forex.


Physical vs. Mental


It should be pointed out that proper time management when it comes to trading Forex can be both physical and mental.

Let me explain…

How many hours per day do you spend thinking about trading? How many of those hours are spent thinking positively about your abilities as a trader versus worrying about your open positions?

That’s the mental aspect.

Now, how many hours per day do you spend in front of your trading station? Probably a lot as most traders tend to do, especially when first starting out. I know I spent a ridiculous amount of time staring at my monitor for hours on end when I first got started.

That’s the physical aspect, and the one we’ll be covering in this lesson.


An Old Adage


There’s an old adage that says it takes 10,000 hours of screen time before a trader becomes consistently profitable. Of course there’s no “one size fits all” as everyone learns at different speeds. Thus we can take this for what it is, a general statement rather than a universal truth.

But one thing I do know for sure is that there is a big difference between studying the markets and hoping for profits. The latter is what most traders do, and it’s a large part of why 90% of Forex traders still aren’t profitable.

In fact I’ll go out on a limb and say that it’s a habit every new Forex trader faces at some point. I don’t think there has ever been a Forex trader who didn’t fall into the trap of too much screen time at some point in their trading career.

But that doesn’t make it okay. It does, however, bring to light the idea that too much screen time can kill your Forex profits. So then what is the adage referring to?

The adage about 10,000 hours is referring to study time, which is time spent learning how markets move. It’s the time spent absorbing the ebb and flow of the different markets. Noting how they react to dynamic support and resistance and how they respond to certain price action strategies.

What it is not referring to is time spent obsessing over open positions or scouring the market for new opportunities. That kind of behavior is not only unhealthy, it can be catastrophic.

The more time you spend obsessing over open positions, the greater the chances are that you will make an emotional decision. Write that down somewhere if you have to. Engrave it in your brain so that it constantly runs through your mind every time you sit down to look at your charts.

The same goes for searching for new trade opportunities. The very best trade setups are always obvious. They don’t require hours of screen time to identify.

The Solution

So what’s the solution? How do you prevent yourself from making emotional decisions due to staring at your charts for hours on end?

The best way I found is to structure your time. In order to do that you will need two things:

  1. A daily plan
  2. A timer

A daily trading plan is essential for managing your time as a Forex trader. It will help curb emotional decision-making by introducing structure to your day. It will also get you in the habit of managing your trading like a business, which is key to becoming a successful Forex trader.

The second thing you will need is a simple timer. This can be an egg timer, a timer on your phone or even an online timer. I’ve found ten minutes to be plenty of time to manage any open positions and identify new opportunities. If you can’t find a new trade opportunity after 10 minutes, there isn’t an opportunity worth taking.

Here’s how the two work hand-in-hand to help you manage your time.

If you’re trading the four hour and daily time frames, you only need to check in on your charts every four hours, at most. We only get 6, 4 hour candles each day, so to check in on your charts more often than every 4 hours doesn’t make much sense.

So every four hours when you go to check in on your charts, you set your timer for ten minutes. Once the timer is up, you have to walk away from your charts. Simple as that.

This will keep you from spending too much time looking for new setups and will also keep you from obsessing over any open positions, both of which can lead to emotional decision-making which will ultimately cost you money.


Final Words


How you spend your time is critical if you want to become a successful Forex trader. It isn’t enough to work hard. In fact when it comes to trading, the harder you push, the harder the market pushes back. And guess what, the market wins every time if you turn it into a grudge match. You can’t force your way to consistent profits.

You have to work smart as a Forex trader. Part of working smart means knowing how to manage your time in front of your charts. Because mismanaged screen time can lead to emotional decision-making rather than logical decision-making.

So start working on a daily trading plan today. Work out when you will check your charts throughout the day, and then use a timer to make sure you keep your screen time limited.

Trust me when I tell you, it works!


Your Turn


Do you spend too much time in front of your charts? If so, I hope this lesson has given you some “food for thought” to help manage your time more effectively.

Please leave your comments or questions below. I look forward to hearing from you.

Leave a Comment:

12 comments
Kiwi says

I like that timer idea. Not that I’ll probably use one, but just to put a conscious limit on time is a good idea. The time required would depend on how many pairs you’re watching, and how many are on the current short-list.

Reply
    Justin Bennett says

    Hi Kiwi,

    Glad you like the idea. True enough, the time will vary some, but it shouldn’t take more than 10 minutes regardless of how many instruments you’re tracking. That is of course assuming that the key levels have already been drawn on each chart, which is how it should be done.

    Regards,

    Justin

    Reply
Poli says

All above is true when you have an account greater than 10000 $
because you can trade in TF’s above one hour.
For all those with mini accounts, we have to continue starring at charts for hours
exactly like you did at beginning of your career.

Reply
    Justin Bennett says

    Hi Poli,

    Thanks for your comment. However I have to respectfully disagree. You don’t need a $10,000 account to trade the higher time frames. You don’t even need a $1,000 account.

    As for starring at charts for hours like I did – you’re right. I used to stare at my charts for hours, and it got me nowhere fast. It wasn’t until I stopped obsessing over open positions that my profit curve started to trend up.

    I’m not suggesting that you don’t need to study the markets. The idea behind this article is that there is a distinct difference between studying the markets and obsessing over open positions. The latter is unhealthy and will only get you into trouble.

    Cheers,

    Justin

    Reply
      Poli says

      So with 1000$ account size and risking 2% / trade (20 $) you wait on 4 hours chart a whole week for a 40 $ trade assuming that it will be a 1:2 R/RW and a winner. Nice . 🙂
      For a living you need at least 50000 $ account size if you trade in larger TF’s because there are few setups / month and not all are winners.

      Reply
        Justin Bennett says

        Hi Poli,

        I would say making $40 a week on a $1,000 account is nice indeed. I don’t know a single trader who would turn his/her nose up at making a 4% gain in a week.

        Of course an account that small isn’t going to get you away from the rat race, but then that’s not what we were talking about. A $1,000 account will never do that, regardless of the time frame you’re trading.

        Cheers,

        Justin

        Reply
          Poli says

          4% /week . I’m tweaking my system for this revenue / day.
          For example on GBPJPY right now when I write this there are to be made still 35 pips till

          183.55 from 183.20.

          Reply
          Poli says

          Now at 183.40 according to your suggestions I don’t need to stare at charts only after 4 hour. But I’m managing my trade scaling out at 183.40 and booking my partial profit. The rest can go now to final target because I don’t care. I’ve made my 1% of account profit.

          Reply
[email protected]!l says

I agree with your Points….. 10-15 minutes are enough to analyse the charts. But if we are taking hours together….then that means we are overanalysing Price Action and making false decisions for more profit booking….. which result in loss..

Reply
    Justin Bennett says

    You got it. 🙂

    Reply
    God says

    [email protected]!l eat your zootles

    Reply
chinaman says

sup playa?

Reply
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