Trading might seem simple at first glance: buy low, sell high – easy enough! Make a couple of bad trades, though, and that theory can go out the window pretty fast. Trading has been described as one of the most stressful professions because each trade carries financial implications and emotional ones. If you lose on a particular trade, your brain will release cortisol and other chemicals that can cause you stress.
Therefore it’s essential to monitor your mental health while trading, even if you don’t have any psychological disorders such as depression or anxiety. Those who fail to do so might find themselves suffering from the classic “trader’s dilemma,” which occurs when traders lose touch with their emotions and become detached from what’s going on around them. Usually, this results in a severe blow to their accounts and sometimes even mental breakdowns because of the high stakes involved.
To avoid these kinds of problems, keep an eye out for these warning signs that you may need psychological help:
- You frequently feel stressed or anxious about work, whether during active trading or when you’re not doing anything.
- You experience a loss in your energy levels and motivation to do the work you usually enjoy doing.
- You find yourself unable to concentrate or follow through on tasks, such as paying your bills or keeping up with other day-to-day matters.
Suppose you’ve experienced any of these symptoms for an extended period. In that case, you should take a break from trading and head over to a nearby psychologist who can help create a mental health regimen designed especially for traders.
Here Are Some Tips To Get the Ball Rolling:
Never Go To Bed Angry At Yourself
There will always be those days when things don’t go as planned because, let’s face it, the market isn’t going to do what you want it to all the time.
When you become angry or irritable, turn all of your attention to something like meditation or yoga instead of letting it consume you.
Focus On The Good Aspects Of Trading
For every great trader, there are probably ten others who fail miserably at this profession; that’s just the nature of the market itself. Look for things you love about trading and focus on those aspects instead of dwelling on what makes it difficult for you to sleep at night. Is it the excitement? The competition with yourself? Keeping up with new strategies? Whatever it is, don’t let yourself forget it because these thoughts alone can keep you motivated to pursue your dreams no matter how far away they might seem right now.
Trade Within Your Comfort Zone
You will need to push your limits to learn more about what you can do, but for most traders, this is not the case. Most people who fail at trading can’t find a way to make it work within their comfort zones-this means that they might be trading too big or taking on trades that are too risky for their accounts. Finding out how much risk you can take on is something that only time and experience can teach you, so try setting yourself up with small, manageable risks instead of throwing all your money into one trade just because your broker offers it. Have a look at this page to test your comfort zone while trading.
Get Plenty Of Exercise
For some, this may seem like a no-brainer, but it never hurts to be reminded that exercising regularly will not only help to keep you physically fit but can also boost your mood and energy levels.
Find A Mentor
Some traders make the mistake of thinking they don’t need outside help when they first start because they believe they “know everything there is to know” about trading. However, doing this can lead them towards making bad decisions simply because they don’t have a seasoned trader’s perspective. If you’re new, find mentors who’ve been through the same as you and take their advice seriously, even if it means taking a break from trading for a while or reevaluating your overall strategy. Successful trading doesn’t just happen overnight-it’s the result of years of practice and mistakes.