From an early age in sports and in school, we learn that the harder we work, the better our result. I remember a saying that I heard, repeatedly, during my tenure as a trainee stockbroker, "hard work brings good luck."

Put another way, the more effort and the more hours that we work, the greater the probability of our success. Successful trading is more about trading smart, than it is about the great number of hours devoted to it.

However, before I get started with my theory of when to take the day off, let me issue a caveat. Literally, everyone I talk to every day is fully committed to trading. My problem is getting people to take time off. The following is meant as advice for people who would rather trade than do about anything else.

So, here are some examples of reasons to take the day off.

Three losing days in a row - If you are in a rut, having lost three days in a row, trading the fourth day without a break is foolish. The smart thing to do is to take a day off, not as punishment, but to rest and regroup. After your day off, you can return to trading refreshed and confident.

Make your own holiday schedule - Some days, like holidays, are predictably non-productive. I would make a list of days that I would not trade and plan my schedule to include doing things I like, besides trading, on those days. I suggest the following days are just not worth trading:

• The day before a holiday
• The 2-3 days before quarterly roll-over
• The days between Christmas and New Years
• The day before FOMC announcements and until 1:15pm of the day of any planned rate announcement
• European holidays (i.e. May Day)

Wishing you success in your trading,
Jeff

For more of Jeff’s articles on trading, go to www.JeffQuinto.com or check out his website for serious traders at www.TransformativeTrading.com.