Encountering stress during your trading career or even a smaller trading period is close to inevitable. Some traders are disciplined enough to handle these situations, while many crumble to the pressure and experience difficulties with stress for more extended periods of time. Now the main question is, how does someone react to trading-related stress.
Table of contents:
1. Calculate how much money you can afford to lose
One of the essential things to break down before starting your trading journey is how much trading capital you can risk. You should always consider that forex trading is complicated and it carries risks. You must also take into consideration that the invested amount of capital can be lost. With that being said, investing and risking more than someone can afford to lose can be very stressful for an individual.
Managing and finding the ideal trading capital for yourself can be very beneficial since you erase the chances of losing more than you can afford. Consequentially, this can significantly reduce trading stress or at least to a considerable extent.
2. Implement workouts in your daily/weekly schedules
Working out is a proven method to clear the mind and increase desires, ambitions, and results. This is because any type of workout increases the blood flow to the brain, which reawakens a person's mind. You can go for a short jog, swim, do some yoga, do a more challenging physical sport, or a simple morning walk. All of the mentioned exercises will ease the mind. Other options are mental exercises, such as a simple sudoku or chess game to refresh the mind. All of the mentioned physical and mental exercises can improve an individual's mentality to help with stress.
3. Acknowledge that losses are a part of the game
Any trader should know that losses are a part of the trading game, which means that no one can maintain a 100% win rate during their trading career. The losses are an essential component of trading, and every trader should learn to embrace them and learn from them. The reason behind that is so you don’t make the same mistakes repeatedly. Taking the loss, learning from it, and analyzing it to avoid it in the future boosts your mentality and consequentially reduces the amount of stress you are exposed to.
4. Include spending time with your loved ones in your schedule
Building a disciplined approach to your trading is essential, but that doesn’t mean you can shut out your loved ones. Make a schedule to include them in your tight trading schedule, no matter the price. Moments with your loved ones, meaning family, partners, or even friends, cannot be substituted for anything. In addition to that, spending time with them eases and reawakens the mind, which reduces your exposure to stress.
5. Communicate with other traders
Something that can benefit you and reduce trading-related stress is talking about it. Preferably with a community that shares the problems that you are facing. You talk to people you know or even complete strangers on online forums or chat rooms. You should embrace the shared sentiment and experience in those interactions since sharing your pain with an understandable community can ease your suffering. Getting things off your chest while receiving positive reassurance can be a great way of reducing stress since you communicate with people who are experiencing or have experienced these feelings in the past.
6. Stop multitasking during trading sessions
During your trading sessions, your focus should be 100% on trading since the task requires your full attention. Multitasking during trading lowers the concentration, resulting in an unwanting error leading to a loss. The occurrence can result in stress and, in some cases, even revenge trading, which is never the right choice and can lead to higher losses than an individual's risk management ratio allows them to face.
7. Keep your expectations realistic
When starting your forex trading journey, a trader can easily get carried away with the initial success, increasing their commitments. To become a consistently profitable trader requires a variety of factors. Some of the primary factors are a large amount of discipline, time, skill, and patience. Until a trader gets to that level, you should keep your commitments in check and slowly grind your way to experience, discipline, and consistent results.
8. Set your limits
Everyone that decides they want to start trading starts with a specific reason. The reason can be the thrill, the experience itself, or even as simple as extra money. However, with an unprofessional approach, trading can become a disaster for an individual resulting in bad decisions. You should find professional help, such as a therapist or a trading expert. If nothing works, it is most often an indicator to quit your trading journey due to excessive emotions that spark in an individual, which cannot be controlled.
In conclusion, even though forex trading is one of the most stressful careers anyone can begin, with enough discipline, you can handle and work through the stress and pressure that comes with it with enough discipline. You can also work on the following factors to reduce trading-related stress: choose an amount of capital you are comfortable with risking, workout, accept and embrace losses, spend time with loved ones, communicate with other traders, stop multitasking during trading sessions, keep your expectations realistic, and set your limits. By applying these factors, you will not eliminate the stress entirely because of the nature of forex trading, but you will reduce it drastically.