For most traders, the concept of vacation is contrarian. They don’t work in some mundane office setting. The market’s open around the clock, 24/7, providing a never-ending stream of potential opportunities – and worries. The question begs to be asked: do you trade on vacation?
Briefly, the urge to probe the market during vacation is driven by several reasons. First, there is the potential for profit and the fear of missing out (FOMO). A sudden market change during a trader’s absence can be viewed as an opportunity lost, resulting in FOMO and regret. Next, trading is a routine activity ingrained in one’s daily life. Keeping track of the market can be viewed as providing a feeling of control and familiarity, especially in the alien environment of a holiday. This is especially true for worriers. A known activity is like a safety net during times of stress.
But vacation trading’s psychological cost far outweighs any financial gain. Watching the markets puts you under constant pressure, and you refuse to let go. The brain’s capacity for rest and recuperation is compromised, which affects mood, mental performance, and general well-being. Chronic stress can result in burnout, decreased decision-making capacity (ironically, it interferes with trading even if it is occurring), and an increased frequency of making emotional, impulsive trades. Work vacations meant to be rejuvenated become the extension of work, taking away from its original purpose.
The impact extends beyond the individual. Families and friends are left out when a trader prioritizes market monitoring over mutual enjoyment. The generated tension can negatively impact relationships and foster resentment. A shift in attitude must meet a successful vacation—a willingness to let go of the job stresses to achieve maximum relaxation and enjoyment. Trade activity, even seemingly insignificant ones, disrupts this necessary process.
Whether to resist the temptation to look at your terminal on vacation is an individual matter involving personality, trading style, and overall approach. For others, simply observing the market creates a chain effect of anxiety to where they’re staring at the screen for hours. For others, it won’t hurt a thing. However, it’s a good beginning for creating some good boundaries. If the trading urge intrudes into your mind during your vacation, it indicates a problem.
Rather than questioning whether or not to bring your laptop along, you can prepare before you leave. Such preparation may include a specific time restriction on tracking the market or delegating trading tasks to a trusted advisor. Ultimately, the best strategy will most likely avoid the market altogether on your break. This allows you to unwind, improve your mental well-being, and resume trading with renewed focus and enhanced decision-making skills.
Let’s conclude
The dangers of vacation trading
- Neglecting yourself and your loved ones. Communication with relatives and friends goes into the background, which causes emotional distance.
- Not relaxing fully. The tension in the background is created, depleting the relaxation effect.
- Decreased quality of decision-making. Being in out-of-the-norm conditions, a trader may make impulsive transactions, which increases the risk of losses.
Advantages of Complete Disconnection
- Restoration of energy. Restoring implies returning to work full of vigor and new ideas.
- Better health. Rest wipes outlines of stress and improves your health.
- Opening horizons. Time off work makes you realize more about opportunities and recreate strategies.
Recommendations for traders who take holidays
- Forget the notebook. That way, there will be less temptation, and you will be focused on resting.
- Plan your trades. Use stop losses and take profits so the market will be free to work without your interference.
- Set a time to check the market. If you cannot leave, limit yourself to 10-15 minutes daily.
- Trust automation. Allow robots (EAs), copytrading services, or asset managers to handle your portfolio so you do not keep it unsupervised.
Even though the desire to trade during vacation is irresistible, the eventual psychological damage will likely exceed any short-term monetary profit. Traders and their psyches should learn to say no and have definite limits. A genuinely soothing vacation, free from market anxieties, is worth much more than any fast trade. The goal should be a rejuvenated trader primed to engage the market again with concentration and fresh vigor.