Taking a break from trading can get you out of flow!
Taking a break from trading is often regarded as a great way to reconsolidate and reorganize yourself, your strategies and your trading plan after a series of losses. And that’s definitely true and in most cases, it works out very well and the trader is able to eventually get back on the winning track.
But, what happens if you take a break from trading for a few months and it’s not because of a series of losses? Let’s say it’s for some other reason like for example some situation in your life.
Well, you may be surprised to see your strategies not working and your results lacking when you come back to trading after the time off. While breaks are always a great thing and everyone should take regular breaks, taking time completely off trading for a month or more will probably get you out of the flow state you were in when you were profitable. Then, when you try to return without preparing first you will most probably be confused as to why you are not trading like you used to a few months ago.
The fact of the matter is, the Forex market is organic and changes all the time. Many times a strategy that worked a few years ago is next to useless now. So, this is just one of the reasons why traders need time to get in flow again.
When you are actively trading you are constantly adapting to the changes in the market and you are updating your strategies accordingly when needed. It’s no surprise that traders usually find that the more they are in tune with the market the better they tend to trade. But, a few months off and they can be completely lost as to what is going on in the market when they return.
Taking a pause will disconnect you from the market and also from your trading habits. You will very likely need time to reconnect again unless you keep yourself updated in some way during the break. This is especially the case if you are a short-term trader because market conditions change a lot faster in the short-term than in the long-term.
To get back on the winning track give yourself time to do that and maybe even trade on a demo account for a while.
Just as you do a rethought of all aspects of your strategies and your trading plan when you take a pause for negative reasons (e.g. a string of losses), in the same way, you will need to revisit your trading principles after taking a pause for of any other reason.
It’s always wise to prepare yourself before going back in the trading arena, and especially when you are not feeling “in tune” with the market. Many traders come back after a pause thinking that everything is as before it, and then they only score loss after loss. This is no indication that the trader is a bad trader or that the strategy is not working, but only a sign that this trader needs some time to get in flow again.
So, just keep in mind that when you have intentionally or unintentionally had a pause from trading, you will probably need some time to readjust to your old ways of doing things. And, don’t expect to hit winning trades one after another right from the first day that you are back to trading. But after some time, you will get in flow again and you may even trade better than before the break.