Rule Du Jour: #14 Trading when Impaired (Patreon)

Rule #14: Don't Trade When Tired or SickTrading while exhausted or unwell can significantly impair your decision-making abilities and lead to costly mistakes.

This came to light this week for me.

Impaired Cognitive Function

When you're tired or sick, your cognitive abilities are compromised. Slower reaction times to market movements, difficulty analyzing charts and interpreting data accurately, and reduced ability to assess risk properly. This all hit me this week.

This instability can cause you to deviate from your trading plan, potentially resulting in unnecessary losses or missed opportunities.

CASE IN POINT: Chart looked amazing for SOL but I just wanted out of the Perp - if I was not so tired I would have held on for a few more days. Note when I exit the perp I go back to SOL so I am still benefiting just de risking.

Without proper discipline and focus, you're more likely to make careless errors or neglect important aspects of your trading rhythm.