Hey guys, there is a question that has been nagging at me since I started trading FX and that is how do you manage the stress that comes from trading?
- #2
- Jan 11, 2015 9:50pm Jan 11, 2015 9:50pm
Hey guys, there is a question that has been nagging at me since I started trading FX and that is how do you manage the stress that comes from trading?
Hello Edamde, I dont know the whole truth but if anything, one particular powerful thing that has helped me manage stress when it comes to trading has been due to my understanding of my trading plan. It has a positive expectancy. It has been proven to win over time. Another thing is that it also has to do with experience as well as one technique I used to practice was "stress inoculation" in which I put myself in that situation in simulation mode and make it as real as possible and learn to manage my emotions. It takes time but it did work for me.
Also keep track of how much you are risking, if you know you can't lose that money, do not trade.... if you know you have a big position open and are looking at your charts every 5 mins to see if the ticker moved in your favor that is not healthy at all.
Also begin a new hobby. For me I started working out. It really took my mind off trading.
A couple questions to ask yourself:
Why do I choose to feel this way? (call out your sub conscience mind, you will see that it is a liar)
Hope that helps
Also if you are in need of examples for trading plan journals, check out this thread: http://www.forexfactory.com/showthread.php?t=520643
- #5
- Last Post: Jan 14, 2015 6:08am Jan 14, 2015 6:08am
Great topic!
Agree with workout, that helps a lot against stress and boosts your health (&looks?) too I also heard from a guy at my gym who undertook a couple of tests, that his score was much higher after a workout. It seems that a workout boosts your ability to focus.
For me, an important aspect in the trading plan, was lowering position size. This is a key to get to a 'healthy' level of stress. With a smaller position size, you feel less scared for a loss, since it's easer to cope with. Your greed to get asap to your profit target also decreases, because you realize you have to let the profits run to get there. It's easier to take your eyes of the chart and stay confident in your trade.
Agree with workout, that helps a lot against stress and boosts your health (&looks?) too
I also heard from a guy at my gym who undertook a couple of tests, that his score was much higher after a workout. It seems that a workout boosts your ability to focus.For me, an important aspect in the trading plan, was lowering position size. This is a key to get to a 'healthy' level of stress. With a smaller position size, you feel less scared for a loss, since it's easer to cope with. Your greed to get asap to your profit target also decreases, because you realize you have to let the profits run to get there. It's easier to take your eyes of the chart and stay confident in your trade.