Forex trading may seem like an easy job to outsiders. To them, all a forex trader does is sit in front of a computer, read a bunch of news articles, put up some lines on a chart, and then money will magically appear.
But every trader will tell you that this is not the case. Every single time a trader goes on his trading platform, he knows that he will be exposed to a variety of stressful situations. This makes forex traders very susceptible to what I call “mental burnout.” This pertains to the collapse of the mind due to overwork or stress.
Mental burnout can be triggered many factors like overtrading, extreme market conditions, unrealistic expectations, and of course, losses.
Mental burnout is indeed a terrible thing as it interferes greatly with forex trading performance. If you want to find out whether you are undergoing or about to undergo a mental burnout, then keep reading on!
The first thing you must understand about mental burnout is that, typically, there is not one single event that can trigger it. It is gradual process that happens over a long period of time. Burnout is also very broad as it doesn’t only affect one part of your life. It can manifest itself in school, at work, in your relationships, and sometimes even affect the burnout victim physically.
Overcoming a burnout is definitely easier said than done. But, as the saying goes, prevention is better than cure. Here are some ways through which you can avoid getting burned out in the future:
1. Remember the warning signs of a burnout
Burnout can sneak up on you without notice, so it’s very important to pay attention to the early warning signs. Below are a few questions for you to ask to see if you’re about to burnout or are already burning out. The more times you answer “yes,” the more likely you are about to experience a burnout:
- Are you beginning to question why you should care about your trade rules?
- Even with proper diet and fitness habits, are you having frequent migraines, muscle aches, and sickness?
- Do you feel self-doubt?
- Do you feel helpless, trapped, and unmotivated?
- Do you hold off in closing a losing forex trade even though you know it’s already doomed anyway?
- Have you started to eat more, take drugs, or consume more alcohol than usual?
- Do you feel angry towards others for the smallest reasons?
Simply go through the list of questions that I posted above and make sure to take it easy with your trading when you answer “yes” more than a couple of times. Also, take note of the usual factors that trigger a burnout for you and try to work your way around those problems.
2. Recall the feeling when you first started forex trading
Do you remember that light bulb moment when you first understood how fundamental and technical analysis made sense? Did you feel giddy when you placed your very first trade? Use that excitement you felt when you first started trading to renew your enthusiasm for the craft. This way, you’d be able to focus more on the positive aspects and less on the stressful ones.
One of the major causes of burnout is the perceived loss of control over a situation, which is something that traders could be prone to given the market’s dynamic nature. When you feel this kind of anxiety while trading, try to regain control by setting simpler goals. These can be in the form of managing your time wisely, updating your trade journal regularly, or developing a trading plan and sticking to it.
3. Find a forex trading buddy
If John Bennett was able to find a Thunder Buddy in his old teddy bear Ted, you should find your very own Thunder Buddy when it comes to trading too! But instead of holding hands and cursing the forex market, share your trading thoughts with your buddy instead. He might be able to help you determine your common mistakes and correct them, allowing you to avoid stress from these problems down the line.
More often than not, trying to overcome a burnout on your own can result in twice the pressure you already feel. In this case, there’s nothing wrong with consulting a friend or even a psychological counselor. After all, it’s possible that burnout might be a product of a different concern other than trading and it’d be best to isolate which problem you really need to work on.
4. Pamper yourself
By this, I don’t exactly mean having a relaxing massage or getting your nails done. But hey, if it works for Big Pippin, it might work for you also!
When you’re feeling more stressed about your trading than usual, you run the risk of making things worse if you force yourself to trade more and work harder. Taking a moment to unwind could help you clear your mind and make it easier for you to focus later on.
We all have our own ways of unwinding – be it through a beach vacation or a few rounds of paintball – so it’s important to know what does the trick for you and then do it! As much as I know you love trading, make sure that you also do something else that you enjoy regularly to avoid the dreaded forex trading burnout.