Decreasing performance anxiety

Trader's Mindset

Feb 03

Futures traders that trade “market open” markets often have a limited window of exceptional opportunity during the first few hours after the market opens. Strict day traders need to be careful opening positions near the close because, without ability to hold, there is a higher probability of being forced out of a trade. While overnight markets sometimes offer opportunity, the liquidity is reduced increasing the risk.

However, markets like Bitcoin that do not have opens (or did not before the futures), operate in strict supply/demand and price context. The opportunity in trading these markets is more dynamic.

Discretionary traders that trade market open style markets are more likely to experience performance anxiety because of the limited window for profit opportunity.

I suggest a few techniques that may help such traders reduce their anxiety:

  1. Use market replay and review extensively.
  2. Increase your flexibility and/or specialize in trading at other times.
  3. Study the market over long term time frames and look for bigger opportunities.
  4. Add systematic strategies to your repertoire.

About the Author

The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at