Overcoming The Stress Of Trading!
As traders, we face many battles on a daily basis and some of the battles we face are unseen, meaning they are psychological. Looking back on my own trading journey, I have come to realize that the battles I’ve faced are psychological but also physical!
Physical in the sense that it’s the work I wasn’t putting in that dragged along my trading journey, the finer details I wasn’t paying consistent attention to. Every single day, with every single trade I placed. So to get started we are going to name a few of the stresses that traders may face daily when trading.
Stresses for Forex Traders
- Trusting your analysis even when you see other traders going in the opposite direction (confidence).
- Managing the trade “correctly” (which is relative and sometimes may be based on instinct and intuitive knowledge about a currency pair)
- Managing your risk mitigation in all your open positions depending on the proportion of your daily risk allowance!
All these stresses can get the best of you especially when you focus too much on the money instead of the journey or the growth and education you may acquire in your daily trading…
With all the stresses one may face it is important to have ways in which you can manage these stresses. Trading can be a lonely road and even when you are in a community with other traders – I say this because everything is on you, the buck stops with you!
You are responsible for everything and so you have to take the good and bad as it comes! This brings us to what you as a Forex Trader can do to help manage the stresses.
How to manage the stress of trading?
How would having a mentor help with the stresses?? They can keep you calm in ENORMOUS pressure-filled situations in the market or rather they can teach you how to stay calm, this is not by talking you through it or taking about a textbook on how to stay calm but through PRACTICE!!
Monkey see, monkey do… You learn to experience events differently because you’ve witnessed it many times and you’ve taken stock of how your mentor approached the situations.
Besides helping stay calm, when you have someone you are accountable to, you tend to take processes and yourself more seriously!
You become less stressed over time because you are building your arsenal of information and this information is meant to guide you on – Your thinking processes, risk management, and a guide that will show you your strengths and weaknesses (That way you can minimize the weaknesses and maximize on the strengths).
When you start journaling each trade as a Forex Trader you begin to see a regression or a progression in your equity and your journey as a trader, and from this point make the right decisions on how to move forward.
Either going back to the drawing board and fixing your process or honing in on your skillset. This way you will grow as a Forex trader and get better and better over time.
3. Staying out of your OWN Head
Not overthinking or overcomplicating your trading, but even more, forgetting the thought of losing money. Learning to manage your emotions and focusing more on growth than on the P&L of your account.
Now don’t get me wrong, the P&L of your account is important, BUT it is not more important than growth, and growth doesn’t come by focusing on P&Ls but rather by focusing on the reasons for the results of those P&Ls!!
Staying out of your head means focusing on your life after you’ve placed your trades and not focusing on whether you’ve been stopped out when you’re having lunch with your buddies.
Lastly, I would suggest you make trading more about percentage growth, incremental improvements, and not the monetary losses because that only breeds greed and revenge trading over time.
This starts a cycle all over again, that cycle is focusing on losses, seeking revenge over the markets, being greedy, losing money and the same process repeats itself!
Focus on the finer details of your trading daily and watch the progression you make as a Forex trader!
Happy trading Traders!