Trading in the Financial Market is one of the most stressful professions. You are competing with some of the smartest people in the world who are also trying to capitalize on every single trading opportunity that you find and take away your money. A profitable trade can turn into loss in matter of minutes as prices keep moving and you need to keep processing new information which market provides.
What Causes Stress in Trading
• Dealing with uncertainty: Our Life is predictable in nature, You go to office from home using same way almost everyday, Life is almost predictable. Most people have a pretty good idea of what the day, week and month will bring. Traders know that everything can change very quickly! The markets will quickly overwhelm any trader who gets complacent and is not constantly on their toes.
• Risk of failure: Trading is about probability and randomness . Same Strategy which worked last time can hit stop loss next time. There is no Holy grail so any trade can blow off your trading account if you are not good at your risk and money management. Every decision in trading can have significant negative consequences.
• Not Meeting Your expectations: When we see chart of hindsight its easy to say I could have done this and make big trading profits but in reality it never happen.
Extracting money from the market is difficult enough with a clear mind, but adding stress to the mix makes it almost impossible. The pressure traders put on themselves to make money or even to have a “winning” trade can cloud their judgment. This allows the “emotional” trader to make the decisions, which usually does not end well. The good news is there are a few things you can do as a trader to combat being stressed.
- Stay calm. Never trade position sizes that cause you increased anxiety. Stay within your comfort zone.
- Have a trading plan and follow it.Trust me, nothing takes away stress more than following a well-thought-out trading plan.
- Analyze what triggers your ‘fight or flight’ response
- Stay comfortable. Make sure you are physically comfortable and relaxed while trading.
- Make Sure to Exercise and Meditation
- Focus on the Controllable
- Move on. Be willing and able to exit and cut your losses when you are wrong. Move on to the next trade, knowing that each one is a new beginning.
- CONSUME MORE OMEGA-3 FATTY ACIDS.Eating foods rich in omega-3 fatty acids–such as flaxseed, fish, and chia seeds–can decrease Stress. Omega-3s make your stress system more flexible,”