Page 20 - Module 2_The_Human_Element

Module 2 - Lesson 3 – strategies for traders

Effort
The final element in the ‘GEM’ triad is effort. This basically means the ability of the trader to maintain
the energy and concentration levels which are essential to pursuing profits in a fast-moving, high-
risk, operating environment. (See Figure 5 - Conclusion) It is usually accepted as a matter of logic that
a successful trading career requires clear thinking, physical energy and emotional freedom.

The point that is often missed,
however, is that physical, mental
and emotional health is
required constantly. Even highly
successful traders are likely to
suffer from burn-out, and
thereby suffer from income loss
and/or ill health - if they do not
incorporate a regimen of good
health into their overall strategy.

2. “a healthy body hosts a healthy spirit”

It seems to be a widespread belief (at least in the West) that good health is something that you either
have or you don’t have. In other words, it’s a question of luck.

While there is inevitably an element of truth in this approach, it is far from being the whole story.
Quite simply, if a suitable amount of care is taken, then the chances of becoming ill are significantly
reduced.

Unfortunately, it is on the question of overall health that most traders suffer from myopia. Indeed,
the trading ’culture’ often requires that traders pay relatively little attention to the basic principles of
personal health care. High-fat foodstuffs (often eaten at speed) and alcohol, combined with long
trading hours and a sedentary lifestyle, are the hallmarks of modern financial operators.

It is; of course, extremely difficult to overcome the peer-group pressures which operate in financial
markets, but it is ultimately a question of balance. If sufficient care is taken with diet, and if sufficient
care is taken with exercise and recreation, then the body itself will try to remain healthy. It is, after
all, its natural condition!

3. mental and emotional health
Physical health is, however, only a part of the solution, mental and emotional health is equally
important. A balance between these elements is of vital importance. There are, of course, many
facets to this subject, but the central feature of a balanced personality is the willingness to accept
the truth about a given situation.

2