Background Stress: Don't Let It Impact Your Trading
Have you ever suddenly just closed out a trade for no good reason? You didn't think about it. You just closed it on impulse. Perhaps you felt the stock wasn't moving fast enough, or maybe you were worried it would fall hard, and you just didn't want to see what happened next. As much as we try to monitor our trades in a cold, calm rational mindset, our emotions often seem to get the best of us. The explanation for an emotional outburst may not be apparent at first glance, but in retrospect, we may realize that a host of factors came together in a split second to make us act on impulse. It's vital to gain as much awareness as possible, however. It is useful to know what we are doing and why, and one of the reasons that impulsive decisions happen is that background stress is left unchecked.
Trading is inherently stressful. When your money is on the line, you feel stress whenever you start thinking about losing. The single losses don't matter much, but when losses mount it can be stressful. The losses lurk in the back of your mind. You may not be sure how you're going to make back the losses that have piled up. Other issues may gnaw at you. There could be a host of problems that lurk beneath the surface, from problems with family or friends to a general uncertainty about the future. Any one of these stresses may seem like nothing more than a common, everyday hassle, but when they add up, even a minor setback can set you off. When you least expect it, you lose your cool. And when you do, these background stressors are likely to influence your performance.
It is almost impossible to eliminate all background stress, but you can greatly reduce some of it. You can do a few things to ease some of the strain, like talking to friends and loved ones about your troubles. Whatever you do, it's useful to admit to someone, almost anyone, that you may be in a little trouble. It takes more energy to pretend that you don't have a problem than to merely admit that you may be stuck and that you should just admit it and devise a game plan to get out of it. By uncovering hidden stressors and talking about them, you will feel a sense of relief.
Stress can get the better of you if you let it. It builds up if it isn't released. Many traders find it useful to let it out physically. By going for a run or working out at the gym, you will let off steam. It may seem like a little thing, but it really helps. You will feel a little less stressed out and be able to cultivate a more detached, rational mindset.
The proper mindset can spell the difference between trading yourself into a slump and achieving great financial success. You must focus on the process of trading. Rather than worry about how well you are doing, enjoy every moment. The key is to take it one minute at a time. Don't mull over the past or worry about the future. Just focus on what you can do one step at a time in the current moment you are living. Once you appreciate each moment, and enjoy the intellectual challenge trading offers, you will calm down and trade more freely and creatively. Finally, always remember to run your own race. Don't try to live up to other's expectations, and don't set unrealistically high expectations. Accept what the markets give you. If you live by your own rules, and accept whatever profits you can take out of the markets, you'll feel better, trade better, and you'll take home more profits.
