Dieting and Day Trading

[Predictor 11]

I've realized that losing weight and day trading can both difficult be difficult for at least one similar reason. In theory, losing weight should be very easy: just create a slight calorie deficit and you'll burn more then you eat. The reduction can even be minor. Yet, in reality obesity is a growing epidemic and many otherwise strong willed people aren't able to achieve the body they desire.

 

My first breakthrough came when I realized that we don't really know for sure on any day if we are running a calorie surplus or deficit. We don't know exactly. There isn't a gauge that we can glance at that will tell us everyday whether we are "gaining weight" or "losing weight". There is a high degree of uncertainty. It is easy to think that eating that scoop of ice cream for dessert won't put me over -- especially if I worked out or plan too. Trading also involves a high degree of uncertainty especially for discretionary traders but even for system traders. One really never knows if they have an edge until after the fact. I recognized early on that what most traders attributed to discipline problems were really problems in decision making under stress and uncertainty.

 

The second problem with eating is that if we're like most people, we're bombarded with constant choices regarding food which means lot of chances for mistakes. Lunch appointments can happen at a moments notice and social etiquette requires attending and eating. What for breakfast? What for lunch? What for a snack? It is easy to be disciplined the entire day and then give into a craving which can set everything back. High frequency day traders are faced with a similar situation: a small edge that must be acquired by making frequent decisions under stress. The body is believed to desire homeostasis and therefore is always trying to correct any "mistakes" (calorie reductions) the dieter makes. While the market doesn't have a profit goal for the trader, there is a cost in commission and spread that must be payed to trade and that grows with frequent trading.

 

Are there ways to lose fat? As a usually overweight individual, I have found and believe there to be some fairly solid ways to lose fat. The first is to exercise intensely for 2-3 hours per day every single day. This creates a situation where one simply burns too many calories to overeat. Unfortunately, it also creates the habit of eating large meals which is why many athletes become obese. The second is to measure and control strictly the calorie intake. For most, this means an expensive meal plan and limited choices for eating. This makes such a plan difficult to maintain and likely not appealing over the long term.

 

The third way is a new approach that I'm trying called intermittent fasting. Fasting is believed to have many health benefits. There are many variations but the one I am following for simplicity is 24 hours eating with no restrictions and 24 hours dieting with little to no food intake. It is easy to see that one this will reduce the calorie intake by about half -- as most people aren't able to overeat that much on the food days. I've been on this diet for a few weeks and am achieving results. It works because one only has to make one decision: don't eat for the day. While not eating for 24 hours sounds difficult, the will power and conscious effort required is greatly reduced as one isn't having to make constant decisions. It is a single decision.

 

The ramifications for day trading are obvious. I have found that I nearly always have performed better in the early morning with my performance decreasing over the day. The implication is that highly discretionary day traders will likely be best served by limiting the number of trades per day and limiting most of their most intense decision making to brief periods when the opportunity is greatest. It will likely also pay to limit the scope of the low pay off decisions that one has to make, such as choosing a specific stop level versus a general stop out level. Likewise, day trading at higher frequencies will likely benefit from greater automation and systematization.

 

The realizations will certainly guide how I structure my future trading and help to explain important factors for success.

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http://themarketpredictor.com

Edited September 19, 2012 by Predictor

[bobcollett 10]

Dear Predictor

Nice analogy

regards

bobc

[zdo 20]

I recognized early on that what most traders attributed to discipline problems were really problems in decision making under stress and uncertainty.

That is a great insight. Keep it.

 

All the rest of the ‘likenesses’, ‘analogies’, ‘ramifications’, ‘connections’, etc – throw them away and continue on your explorations.

 

 

 

 

 

 

 

 

 

 

…..

 

 

 

 

 

 

 

 

 

 

and re: fasting --- some old oriental monk said

“Any fool can fast, but only a wise man can break it properly”

 

hth

[TheDude 10]

The third way is a new approach that I'm trying called intermittent fasting. Fasting is believed to have many health benefits. There are many variations but the one I am following for simplicity is 24 hours eating with no restrictions and 24 hours dieting with little to no food intake. It is easy to see that one this will reduce the calorie intake by about half -- as most people aren't able to overeat that much on the food days. I've been on this diet for a few weeks and am achieving results. It works because one only has to make one decision: don't eat for the day. While not eating for 24 hours sounds difficult, the will power and conscious effort required is greatly reduced as one isn't having to make constant decisions. It is a single decision.

 

 

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Blog - The Market Predictor

 

I saw a program on this. Apparently its one of the best ways. The journalist also mentioned the brain becomes sharper and more nimble when we are hungry for longer periods (the days you done eat much). This is because of the animal instinct kicks in with the need to find food.

 

He also fasted for 86 hours too. He could only drink a miso soup in the evening, and have as much water as he wanted. Nothing else.

 

At the end of the day however, I think it's common sense. If you're overweight, you need to eat less and take more exercise. In moderation. If a 2-3 hour work out is making you eat a load after, it's kind of self defeating. A brisk walk 2-3 miles a day should do the trick.

 

Why not have 2 meals a day instead of 3? As traders, we tend to sit round a lot, so do we really need 3 meals a day? We're not labourers are we! We dont burn many calories in front of the monitors.

[Berzerk 10]

it's a great idea, I mean fasting every x days or every other day. I did the same with not eating sweets for more than a month and it made a huge difference.

 

Perhaps with trading the idea might be NOT to take profits too early...

[Obsidian 10]

.....Why not have 2 meals a day instead of 3? As traders, we tend to sit round a lot, so do we really need 3 meals a day? We're not labourers are we! We dont burn many calories in front of the monitors.

 

for the last couple of months I have been skipping lunchs and that helped me lost some weight (5kgs in 2 months).

[johnw 10]

Hi Pred,

 

Have you given thought to changing your level of fitness instead of confining your goal to just weight loss.

 

There are forums for fitness/sports prep/ swimming/ bodybuilding etc where Posters would be more than happy to assist you in a very useful manner.

 

Even just reading some of the threads will open you to interesting possibilities.... such as the psychology of changing engrained habits ... best methods of burning calories and building muscle ... benefits of 5 or 6 small meals per day .... difference between food groups etc.

What is better to trade on for example .... slices of toast smothered with butter and delicious strawberry jam (yum yum gluten, fats and sugar), or a small bowl of banana, blueberries, quinoa and natural yogurt ( yummy rocket fuel)

 

I am sure that you know to ease slowly into major changes to diet and exercise because the initial reactions from your body will not be favourable ... but this period will pass.

Perhaps give consideration to some simple yoga exercises (youtube is best source)

once again take them slowly.

 

goodluck

[Landser 10]

My 50 cents about dieting.

 

If a person who wants to optimize it's daily ration is a smoker, he has a great opportunity to improve his health. Just stop smoking and cut down the amount you eat simultaneously.

 

The point is that a person's mind cannot think about smoking while the stomach is almost empty. As a result, your thoughts are equally distributed between these two feelings and the process of adapting goes smooth.

 

I write it because it already helped me to lose about 5 kilo per month and quit smoking.

 

Good luck.

[alibaba5055 10]

Hi Pred,

 

Have you given thought to changing your level of fitness instead of confining your goal to just weight loss.

 

There are forums for fitness/sports prep/ swimming/ bodybuilding etc where Posters would be more than happy to assist you in a very useful manner.

 

Even just reading some of the threads will open you to interesting possibilities.... such as the psychology of changing engrained habits ... best methods of burning calories and building muscle ... benefits of 5 or 6 small meals per day .... difference between food groups etc.

What is better to trade on for example .... slices of toast smothered with butter and delicious strawberry jam (yum yum gluten, fats and sugar), or a small bowl of banana, blueberries, quinoa and natural yogurt ( yummy rocket fuel)

 

I am sure that you know to ease slowly into major changes to diet and exercise because the initial reactions from your body will not be favourable ... but this period will pass.

Perhaps give consideration to some simple yoga exercises (youtube is best source)

once again take them slowly.

 

goodluck

 

I agree, the goal should be to gain overall fitness, rather then just loosing weight.