How to Manage Trading Stress

Traders should never underestimate the role that stress plays in their trading. Many more will succeed or fail based on their ability to handle stress than will have their winning and losing determined by a robust method, mentor, or risk management. It is even possible for a trader to win consistently and still not be able to win in the long term due to the fact that they can not get comfortable being uncomfortable with capital on the line with an unknown outcome. Others will simply burn themselves out stressing excessively while losing and also stressing when they win scared they will give back their profits. If you are  going to be a successful trader you will need to manage the weakest link in any trading system: the trader. Stress management is the traders weakest spot. You have to be able to handle the heat of trading so you don’t melt.


Here are the ten ways to manage your stress in trading:

1). When you get over excited calm down by concentrating on your breath.
2). Never trade so big that one trade will make or break your account, trading career, or lifestyle.
3). Only trade systems and methods that you fully understand and have faith in for profitable in the long term.
4). Visualize yourself being a success as a trader.
5). Slow down your trading to a pace that does not rattle your nerves.
6). Connect with like minded traders that understand your battles and goals.
7). Study and do so much homework about trading that you begin to have unshakable confidence in yourself.
8). Stop doing what does not work in your trading and start doing more of what does work for you and makes you money.
9). Do not let others shake your confidence, do not accept any unsolicited advice from anyone, stick to your game plan.
10). Accept your losses quickly when stops are hit to avoid emotional damage and stress from big losses.

Do everything you can to prevent the damaging effects of stress on your trading and life.

9 thoughts on “How to Manage Trading Stress”

  1. Dear All,

    I was out for some personal work, Site will be updated by 1 Jan on regular basis.

    Inconvenience caused is regretted.


  2. Hello Sir,
    I’m silent follower of your blog and learned a lot. I’m missing your blog describing your view on Nifty.


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