How To Fight Stress When Trading

Working under a lot of stress is a natural thing when you live and breathe the stock market world.   That’s a fact you need to accept and conquer in order to be effective in making money.  To last long in the industry, you must be knowledgeable regarding financial markets, must have the guts and experience, and must possess patience and perseverance.   Well, that sounds really tough.

Being tough in the face of stress is also an attitude needed if you want to succeed as a stock trader.  Stress can affect your performance in any unimaginable circumstances that may arise.  It could affect not only your mood and profit but your health and relationship as well.  So, if you will decide to be a part of the stock market world, you must be ready and prepared not just mentally but physically as well.


Mental Pressure In Trading

According to experts, trading is one of the most stressful jobs.  Not only do you have to make a lot of decisions, but you have to do them fast.   Your choice must be right or else you’ll end up losing your everything.  Stress arises on a daily basis.  Even when you’re outside the workplace, stress follows you.  Pressure is that high that some of the new kids on the block end up quitting.


Success Comes With The Ability To Combat Stress

But once you are able to conquer the stress, you’ll probably perform better and end up more profitable.  That is why it is essential to learn how to manage the pressure brought by being involved in the stock market.


Do Not Always Go With Your Instinct

I can’t consider myself as a veteran when it comes to trading, but I’ve been here for quite a while now.  The first lesson I’ve learned is not to always go with my instinct.  It may work for some other things, but not always with trading.


Following your basic instinct (to panic and to buy) is a habit that is very hard to break.  There are times when you got to learn to convince yourself to go the opposite way.  You got to ignore what the voice in your mind is telling you if you aim to be profitable.  Trading isn’t your easy money business, but the exact opposite actually.


Going with your instinct at the beginning could make you feel good.   But in the long term can be the source of your stress which you will take with you even when you hit the bed.  Talking to yourself, blaming yourself, “I should not have done it.”  “I should have been more patient.”


Get Educated

The second thing I did is to make myself well versed on how I could keep my ball rolling.


Reading books, attending seminars, and chatting with seasoned traders will help you do the trick and be profitable.  There are psychology books for traders which could help you when and when not to follow your instincts.  You’ll learn the tricks from experts – quantitative analysts and successful investors – on how to develop a mindset like that of a real accomplished trader.


One seasoned trader told me to avoid my instinct to panic.  Once I do, that is when I’ll start making irrational decisions.  I got to learn to master the stress of the game, or else it will make me quit.


The arena can make you feel excited at first, but not after you got the taste of losing, blowing one account to another.  Stress kicks in hard and you might just see yourself giving up.  Getting yourself educated on how the rules work in that arena will help you to set aside your emotion and think of what would be right.


Trading may not always be about winning or making money easier, but about cutting your losses to a minimum.   When you decide to be in the stock market world, you must learn to eat stress and not let stress eats you.…

A Trader’s Health Story

John is turning 36 years old this coming December. Only 2 months shy of his birthday, he collapsed all of a sudden and was brought to the hospital where he was then diagnosed to have cerebrovascular accident or stroke. He is in the prime of his adult life and yet this is his current situation right now. One thing that can be attributed to why he just suffered a stroke at a very young age is his current occupation – John is a stock market trader.…

Why You Should Start Investing In Startups


If you’re planning to invest in the stocks of major multinational companies such as Apple, Yahoo, and Google, stop! These front-line companies have been in the limelight for years and their returns of investments have been guaranteed. But, maybe it’s time to consider those small, rising startups at the back that have loads of hidden potential only to be unlocked by a small portion of your investments.…

The Truth About Penny Stocks


There are numerous investment vehicles available to the individual investor, each with its own myths and generalizations attached. Mutual funds will always go up (aside from the times they trend downwards), government bonds are as good as gold (except when gold outperforms them like a race car does a tricycle). A property is always secure (unless it tanks completely). A  penny stock is one of these options, but unlike CDs or the money market, a greater amount of investor acumen is required to avoid these pitfalls.…

2008: Why Are People Still Not Sure Of What Happened?



Television news tends to say the same words over and over again without actually discussing the real issues. This is called consensus. If you ask the typical man in the street, he will tell you that the subprime mortgage crisis involved banks and investment businesses losing a bunch of the public’s money, at which point, it was necessary to give them more public money in order to protect the public. Simple, right? The effects of the worst economic crisis since the Great Depression in a nutshell. As investors, we should know that simplistic explanations are rarely fully correct and we should take the time to dig a little deeper.…

Basic Rules In Stock Market Investment


People invest in the stock market primarily because they want their money to grow and have enough savings for their future. Since we have the so called “inflation rate”, where in the common commodity prices sort of eats the value of our money, we invest in the stock market so that we can earn extra.

If you are a beginner in investing in the stock market, the following advises or suggestions will be helpful to you in learning the trade. There are potential wins and losses in the trade and so, it is vital that you be guided by the following rules: