Have you ever experienced a trading stress? Have you ever been in a situation when you don’t know what to do or know what to do but don’t do it?
- The first step in coping with trading stress is to know what to do. Knowledge comes from studying, analyzing and making decisions based on that analysis.
- The second step is to do what you learned on the first step that is to do what you know. This step requires practice.
- If trading is your only source of income, do not trade with all the money you have, as thinking that at the end of month you have to pay your bills will cause more stress and you will not be able to make proper decisions.
- If too much risk causes stress than simply stop taking too much of it and pay more attention at your money management solutions.
- When you do something that you don’t have enough knowledge about it or something you are not experienced with you become stressful. So before doing anything learn, learn, learn and practice, practice, practice. In this case demo account can help a lot.
- Trading on behalf of others causes even more stress and requires an extra level of confidence than when you trade with your own money so don’t do it if you haven’t properly built your confidence yet.
- Setting stop loss points is one of the most important steps in trading plan and if you do it properly your trading account will not get wiped out.
- If previous losses have caused fear and lack of confidence, stop trading for a while until you learn lesson from your mistake and are cool enough to make right decisions without rushing to win back lost money.
- If you are a new trader and small time frames are the cause of your stress as you have to be fast in your decisions then just shift to bigger time frames.