Psychology Course #6: 5 Morning Habits That Help Retail Investors Beat the Market and Retire Early
Hello friends,
Today, let's talk about a habit that could give your portfolio (and your life) a serious edge: waking up early.
Now, I know what you're thinking - "Another article telling me to be a morning person?" But hear me out. As someone who's made the switch from night owl to early bird, I can tell you it's been a game-changer for my investing strategy and overall productivity.
This post is a continuation of my Daily Morning Mental State Checklist post.
Why Embrace the Early Hours?
Beat the Market (Literally): By rising before the opening bell, you give yourself time to review pre-market movements, catch up on overnight news, and plan your trades for the day. You're not rushing to make decisions as the market opens - you're calm, collected, and ready.
Quiet Analysis Time: The early morning hours are blissfully quiet. No phone calls, no Slack notifications, no family demands. It's just you and your charts, research, or financial models. This distraction-free environment is perfect for deep analysis and strategic thinking.
Develop a Winning Routine: Successful investing isn't just about picking stocks - it's about discipline and consistency. An early morning routine sets the tone for your entire day. Maybe you start with a quick workout, followed by market research over coffee. By the time others are hitting snooze, you've already accomplished key tasks.
Catch Global Market Action: If you're into international investing, early mornings let you catch the tail end of Asian markets and the opening of European exchanges. This global perspective can inform your US market strategies.
Reduce Stress: No more rushing to check your positions as you're running out the door. When you rise early, you have time to ease into your day, reducing overall stress and allowing for clearer decision-making.
How to Become an Early Rising Investor
Start Gradually: Don't try to suddenly wake up at 5 AM if you're used to rolling out of bed at 8. Start by setting your alarm 15-30 minutes earlier than usual. Gradually adjust over weeks.
Create a Compelling Reason: Set a specific investing task for those early hours. Maybe it's reviewing your watchlist, reading a financial report, or learning a new analysis technique. Make it something you look forward to.
Prepare the Night Before: Set out your coffee maker, have your laptop ready, maybe even lay out some comfortable clothes. Remove any friction that might tempt you back to bed.
Make It Enjoyable: Pair your early rise with something pleasurable. For me, it's a great cup of coffee and a quick skim of my favorite financial news sites before diving into deeper work.
Use the "5 Second Rule": When your alarm goes off, count backward from 5, then physically get up. Don't give your brain time to rationalize staying in bed.
Be Consistent: Try to maintain your early schedule even on weekends. Your body will adapt more quickly to the new rhythm.
Leverage That Extra Time: Use your morning hours strategically. Maybe Monday is for weekly planning, Tuesday for deep research, Wednesday for portfolio review, and so on.
The Compound Effect
Just like compound interest grows your investments over time, the habit of rising early compounds your knowledge, discipline, and edge in the market. It might be challenging at first, but stick with it. Before long, you might find yourself looking forward to those quiet, productive morning hours.
Remember, successful investing is as much about your daily habits as it is about your market knowledge. By taking control of your mornings, you're setting yourself up for long-term success in the markets and beyond.
So, are you ready to join the early risers' club?
What's your morning routine like?
Have you found certain habits that boost your investing game?
Share in the comments below - I'd love to hear your strategies!
Here's to buying low and selling high!
Jack from the Daily Moat