The Stress Effect
Trading brings its fair share of stress, as you all know. The question revolves around how you handle the stress. Some get physically sick, some start to panic, and some even go into depression due to the violent swings that the stock market can produce. Depending on the situation and the person, the stress reaction may be minor or very severe. Your bodies response to stress is physically and emotionally exhausting. As you continue to experience stressful situations, the more accustomed you become to the idea of the negative feelings that are associated with stress. These negative feelings turn conviction into doubt and nervousness. Practice yoga, meditate, play sports, exercise, spend time with your loved ones, work on your spiritual growth.
You need to de-stress your mind and clear your mind. Obsessing over your trades will do nothing but burn you out and leave you on edge all the time. There is more to life than trading . Don’t let trading get you too emotionally high or low. The key to lowering stress levels is to be grounded and also to be confident that you can make the right decision when the time comes. That comes with experience so be patient.
Anger is another emotional response that has no place in a stock trader’s heart. Figure out what is troubling you inside and learn how to deal with it immediately before it manifests inside as pent up anger which will show its ugly head sooner rather than later. Anger makes you vengeful and provokes bad decision making in the hopes of “getting back” at the market or forcing trades due to the frustration of losing. I can’t tell you how many times this has happened to me when I was a junior trader and I never saw anything but losses stemming from it. Verbalizing and expressing your anger in the appropriate ways will allow you to drop the proverbial “baggage”. You will sense a feeling of freedom internally from not having to cover up your past emotional experiences which have kept depression, panic, and anxiety alive.
Remember, the more you can disassociate yourself from your emotions, the better at trading you will become.