You’re like a deer in the headlight staring at your screens, frozen, and you don’t know of what to do next.
You feel the pressure to perform. You haven’t made a winning trade all week.
The bills are due and your checking account is running low. You don’t know what you’re going to do. You’re becoming desperate and you swear to yourself “I’m going to push myself to make some pips.”
Unfortunately, the more you tell youself this, the more stressed and more upset you become. Take a chill pill dude. Select a Nora Jones track on your iPod and kick back.
In these situations, it’s natural to feel that you must push yourself to the limits to make a profit. Depending on your abilities and resources, be careful that you don’t push yourself too hard. You might make matters worse.
Trading is a profession where you can convince yourself that your work is never done. There’s always another chart to read, an economic report to digest, or a new trading strategy to create or test.
When it’s been some time since you’ve made a winning trade, you start to feel that you absolutely positively must make a profit.
But unless you are a seasoned trading veteran, pushing yourself to the limits will only add to your frustration. Suddenly, you can’t seem to get anything done. Applying additional stress on yourself doesn’t always increase performance levels. Stress and performance work according to what scientists call an “inverted U curve”.
Here’s how the inverted U curve works in a nutshell. When a task is easy, like running around the block, a high level of stress enhances performance, but when a task is difficult and intellectually challenging, such as devising a profitable trading strategy, a high level of stress impedes performance.
Stress, even a small amount, saps up limited psychological energy. When you put stress on yourself to trade more profitably, you’ll find that you start to feel a little tired. And if you push yourself too far, and go way beyond your abilities, you’ll eventually exhaust all your stored psychological energy. And die. Okay, I’m just kidding.
When you feel stressed out because you are putting pressure on yourself, try reducing some of the pressure.
Tell yourself, “I’m not going to keep pushing myself. I’m just going to come up with a modest goal and work at it one minute at a time, and then maybe, one hour at time. I’ll just give it my best effort.”
See what happens when you try this thinking strategy. You’ll find that you’ll harness a little more energy just by simply taking some of the pressure off. Taking a break in the middle of a stressful day can also do wonders. Step outside, take a walk and soak up the sunshine. It will release some pent up stressful and negative energy.
You can also try a simple form of meditation. Go to a quiet place, and simply repeat this mantra, “I accept what I can get out of the market.”
Repeat it over and over again. Concentrate on the words and let your worries about the markets disappear from your consciousness. You’ll feel a little better, and you’ll feel your energy level rise.
If you are a seasoned trader, pushing yourself to reach higher and higher standards of excellence can produce higher levels of performance. But if you are a novice trader, pushing yourself beyond your limits usually leads to frustration, stress, and eventual exhaustion.
When you have pushed yourself so far that you feel the pressure, STOP! Take a chill pill. Accept your limitations and relax. Ironically, you’ll feel a little energy boost and will suddenly feel empowered. At that point, you’ll be ready to tackle the foreign exchange market again, and grab those positive pips.
Brush up on your Forex Psychology.