The following article will provide beginner traders with various different methods and approaches that they can use to handle stress, or to completely avoid stressful situations that can often arise during intense trading sessions.
Managing and overcoming stress in professional trading is essential in terms of being able to maintain your focus, and therefore, being able to make better trading decisions. Failure to do so can lead traders to make poor decisions that could cost them a lot.
After reading this article, you should come away with a better understanding of how to address stress, and how to control yourself in a more effective way, so that you may become a better trader as a result.
Focus On What You Can Control
Professional author Charles R.Swindoll once said ''Life is 10% what happens to you and 90% how you react to it''.
Charles was ultimately discussing how people should have the right attitude to life, but from this quote we can also understand that there is much in life that is out of our control, and therefore, it makes sense to focus our time and energy on the parts of life that we can control.
In trading, there are often patterns we can follow, news and economic developments that provide clues as to which direction the markets might move toward, and other indicators or signals that guide us in some way.
However, there are also plenty of moments where none of those things help us, and the markets simply move in ways we cannot predict. Therefore, it's important not to blame ourselves when things go wrong in these situations. We must focus on the elements of trading that we can control.
By doing so, traders can avoid the unnecessary stress associated with uncontrollable elements or completely unexpected events. This will also ensure that a trader's time and energy is spent in areas that can actually benefit them in some way, because they are solely focusing on the things they can control.
Venting Your Frustrations
Sometimes in life it's a good idea to simply vent out all of your frustrations to a friend, a family member, or a like-minded colleague. In the case of trading, it makes sense to discuss your frustrations with other trader friends.
Doing so might help you to relieve your stress, and it might also help you to approach trading in a different manner in the future. Since other traders will think differently to you, they may present you with alternative methods to trading that you haven't previously considered, or they could even help you to solve your trading problems.
Failing all of that, they might just be a good outlet for you in terms of having someone to discuss your frustrations with - because they fully understand where you are coming from (since they are also a professional trader, and are likely to encounter the same problems that you do on a regular basis).
There are likely plenty of instances where multitasking might seem like a more preferable approach to trading (and perhaps life in general), but ultimately, it may actually be preventing you from performing at your best.
According to scientific studies, humans apparently perform better when they 'monotask' (perform activities one at a time) instead of multitasking. This is because multitasking overloads the brain, and keeps shifting a person's focus from one task to another.
This of course has an impact on productiveness, retention, and much more. Therefore, try to avoid multitasking where possible, and try to focus on one aspect of trading at a time. This should help you to dedicate your full attention to each aspect of your trading, which should help you to be more effective with your trading.