Have you ever had one of those days? Your charting software didn’t work just right, your internet connection was doggedly slow, and you forgot to read up on this week’s latest economic report releases, so you missed all the good opportunities.
All of these events are just a select few sources of stress that the average active retail trader has to deal with. Not dealing with these episodes correctly, and letting them build upon each other, can overwhelm you.
When you’re thinking with a stressed mind and body, your mind isn’t focused, and this can mean danger for your trading.
This is why it’s important that your head is clear and you are cool and composed while trading.
Prolonged stress can be detrimental to not only your trading, but to your health in general.
In a previous article, I recommended taking a vacation as one of the most effective ways to reduce trading-related stress.
Unfortunately, it may not always be practical or feasible (for various reasons such as money, time, family, another job, oh, and did I mention money?).
But don’t worry!
There are plenty of other things you can do right now (without having to spend the dough) that are as effective at reducing stress.
Exercise!This is a no-brainer.
And don’t think you have to run out and buy a gym membership. Taking a nice brisk walk around the neighborhood during your trading down-time will do the trick.
Exercise helps relieve the tension that builds up during your crazy trading sessions and it keeps your body feeling loose and fresh.
Lower caffeine and other stimulant intakes.
Forget the obsessive purchases at Starbucks or drinking 2 liters of soda…by yourself… in an hour…sitting in front of your computer!
Caffeine can be great at times, giving you that boost when you need to stay awake. But it can also make you super hyper and elevate your feelings of panic at just the wrong moment.
Trading is stressful enough by itself. Don’t let caffeine add to the mix!
The stress you feel is often caused by something other traders are going through as well; we all trade the same markets, right?
Hop on a forex forum to discuss what’s bugging you or what’s not working for you.
You’ll find out that just talking about your trading stressors with like-minded people can be a big help in reducing their negative effects on you. And you might learn something, too!
Don’t stress yourself by trading outside of your skill level.Set clear risk limits and have realistic goals.
When you’re just beginning to trade, you want to keep your positions small. Trading beyond your skills will make you more anxious about your open trades, likely result in your account balance taking a hit, and cause even more stress!
Stress will wear you down mentally and physically if gone unchecked or untreated. Take the time to identify some of the things you currently do that help reduce your stress or follow some of my suggestions to get you on your way.