Taming the Stress to Become a Better Trader

This is the result of a survey about the most stressful experiences in trading. The results indicates that trading stress does not only result from losing. Some trading stressors identified were:

• Doing nothing and staying out of the market can be stressful. The trader may have closed a position only to find that the market has moved significantly in the direction of the trade. Simply knowing that you could be making money if the position were still in effect could be stressful.

• Some traders may simply sit on a losing trade, being unable of making a decision and simply watching their margin disappear. Doing nothing can be a stressful experience.

• Some traders find the simple fact of not being in control of market prices as stressful and these traders often do not have a developed plan of action.

• Novice traders find the fact of being on their own highly stressful. Learning new trading skills with little or not supervision from a mentor leads to self-doubt and stress.

• The solitary nature of trading from home leads to stress. Some traders find the inability to discuss trading problems with colleagues highly stressful.

• Money is a powerful incentive and incentives can be stressful. Simply being on the market can be stressful to some individuals.

Traders who have protected themselves against the devastating effects of stress are the traders who succeed and consistently make money in the markets.

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