Could You Work Only 2 Hours per Day?
For many readers to work 2 hours per day will sound like the ultimate dream. ‘But what’s the catch?’ the’re likely to respond. If by working less hours you earn less money than I think most of us wouldn’t be interested in this type of arrangement.
However, here the object is to work two hours, rather than your normal 9-5, and earn at least the same amount of money, with the aim is to earn much more in the future. But is this really possible?
The short answer is yes, it is. There are thousands of traders out there and other professionals who work about 2 hours per day, sometimes even less.
The relevance of 80/20 rule at your workplace
In case you never heard of the 80/20 rule named after an Italian economist Vilfredo Pareto who observed that in most cases in business as in life roughly 80% of the effects come from 20% of the causes.
There is a common consensus in business that 80% of sales come from 20% of your clients. There are many other business principles that can be examined in the light of the 80/20 rule.
The 80/20 rule also corresponds to a power law distribution in mathematics and it is a part of power distribution observed in nature.
Let us now examine the relevance of the 80/20 rule in the context of our work habits and effectiveness.
Would you agree that 80% of your productiveness that really has an impact on your overall effectiveness at work could be done within 20% of your time at work? That is often the case for white collar workers.
Here are some other 80/20 rules that will apply in business and entrepreneurship, but some of them can also be applied to trading and even to some aspects of our daily life.
Usually the people who work less than two hours a day are strong proponents of the 80/20 rule. They firmly believe that working long hours is detrimental to their work.
Should you focus on trading two hours a day?
Many successful professional traders will agree with the 80/20 rule for trading. For the majority of master traders most of their trading activity in a day is done within an hour or two. Looking at the charts and analysing the markets all day long can be detrimental to your trading for a good number of reasons.
- Decreased concentration levels
- Poorer judgement
- Reliance on coffee, cigarettes, sugar, etc.
- Prolonged stress
However the main reason why successful traders work only a few hours a day is because they focus their efforts on big market movements during the New York/London market hours.
Most professional traders such as Franco from Binary Options Trading Signals trade only two hours per day during the NY/London sessions because that’s when most big traders also participate and price trends and reversals are more clearly defined.
Trading these sessions is better for short term Forex traders, as well as, binary option traders since the market moves are less erratic.
End-of-day trading takes only 30 minutes
There are also many proponents of trading the end-of-day price patters. This is mostly applied in forex trading but can just as easily be applied in binary options. In fact if you read on, you will understand why it might be safer to trade binary options using this particular method.
The end-of-day traders usually are swing traders who complete most of their trading day within 30 minutes to an hour. This is not an exaggeration by any means. If you’re a knowledgeable trader who knows how to interpret price patterns and you’re smart enough to follow daily charts all you really need to analyse is the last candle (daily price movement with open and close) right after the New York stock exchange closes at 4pm ET.
The end-of-day traders look at the last closing candle and its pattern and analyse it in view of support and resistance levels. They might also look at main moving averages and possibly a momentum indicator. Based on this information they can enter the trade comfortably (setting adequate stop losses and trailing stops) and be done with work for the day.
Most end-of-day traders will check the price action of their traded assets in the morning after the New York markets open. This is quite a common way to trade and it has plenty of advantages. Using daily charts to trade helps to eliminate a lot of market noise and helps to capture greater market moves.
Binary option contracts can be traded in a similar way with a next day or 2-3 day expiry.
Working long hours is detrimental to your health
It has been proven that working longer hours in the office can be detrimental not only to your health but also to your actual work output. Working more doesn’t necessarily mean working better. In fact, it’s often the opposite.
There are numerous noteworthy studies which clearly indicate that a combination of stress, tiredness, raised blood pressure and unhealthy diet which stem from working long hours may be the cause of serious health complications later in one’s life.
The lack of healthy physical activity during work hours, prolonged exposure to radiation from routers, computer screens, mobile phones, etc. influence our decision making processes.
There are also other studies that show that our levels of concentration drop significantly after our peak working hours and that we are much more likely to make mistakes when we work longer hours in the office.
What will you gain by working less hours?
Being able to work less hours will give you more time to spend with your loved ones or to persue your interests and hobbies. This is simply priceless. We all need to recharge and unfold.
There was a study done on what older people say or complain about before they die. The most common regret was that they worked too hard and too often and not spending enough time with kids, friends, or family. Try to learn from their mistakes and find a satisfying balance between your work and life.
This will also improve your trading and you will find that when it’s time to work and focus your concentration levels will be supercharged.
Published in Education