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.”
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.