The Stereotypical View of Trading Stress
The stereotypical image of a professional Forex trader is a guy sitting at a desk, surrounded by quote screens, watching every twist and turn in the market and frantically placing orders. You often read about how traders in banks and hedge funds suffer “burn out” as early as their thirties and retire from trading because the stress is to much! This view of the successful Forex trader is a myth. As I have discussed in other articles, these bank traders very often fail to make money and the stress is more to do with keeping profits up for the company than making profits for their accounts or clients.
Many new traders, take the above view as one which is true and think that stress is part of trading a strategy for profit in FX. They think watching quotes every few minutes, placing huge volumes of trades and trying to catch numerous small moves is what successful trading is all about and end up stressed and frustrated, as they keep losing with their trading signals. They have created a stressful environment for themselves and when under stress, these traders lose, get frustrated, angry and lose their discipline.
To win you need to trade in a way which is not stressful and if you do learn to do this, you will trade with less effort, be relaxed, calm and able to make rational trading decisions and trade with discipline for bigger profits so – how do you make trading relaxed and stress free?
Change Your View of the Market and Trade Stress Free
We have discussed many of these points in other articles on this site but you must not think banks and brokers make trading profits, learn to trade long term, learn to be patient and also, learn to spend less time on your trading so why is it so important to do this?
If you spend to much time in front of a quote screen, you will want to trade to much and as soon as this happens, you will have the urge to trade. You will start to lose and this will increase stress levels and have a negative impact on your trading – short term trading strategies will always fail to make money. Watching quotes all day is boring but the good news is you don't need to!
If you spend only an hour or less per day watching quotes, you will immediately, see better trades because, you won't be focusing on watching random price action and being tempted to trade it. You will be fresher and more relaxed when you come to trade and get your trading strategy and signals in the market quicker and enjoy better results.
Trading long term is the best way to trade currencies and trend following strategies are more profitable, take less time and are less stressful than short term day trading or scalping strategies.
The myth promoted online about what is needed, when trading Forex markets to achieve success is very different from the reality but the good news is – the reality is much better than the myth.
Other Stress Reduction Methods
The money you trade should be risk capital only. If you are trading money which you feel you have to make money on, you will be stressed and its a known fact trading scared money is a great way to lose money to the markets. You need to become detached and not think about your trades which is hard, if you need the money to pay for bills or other essentials.
Never trade, if you are feeling stress in other areas of your life such as, your working on a big work project or dealing with a family illness, because your stress will be transmitted to your trading.
Make sure, you have a clear mind when trading the markets! A healthy diet and exercise, may not be seen as needed for trading success but they are. If you eat the right foods and get physical exercise, you will have a more relaxed and better mindset to cope with life and with trading.
Don't seek perfection or believe the myth, of easy money with no drawdown. Accept losses cheerfully and understand, that to win long term losses are normal in the short term. Traders get stressed out and frustrated because, they simply don't understand the reality of trading currency markets so don't make the same mistake.
In conclusion, trading should not be stressful or an activity which requires a lot off effort in terms of hours spent studying or in front of a quote screen. You should be able to execute your trading strategy quickly and in a relaxed and effortless manner. If you follow the tips in this article, you will see the markets differently to most traders and when you trade your strategy, your mind will be sharp, focused, relaxed and calm which is the opposite, of what most traders believe is the way to achieve currency trading success but it's actually, the best way to trade currencies for profit.
So RELAX, reduce stress and you will not only make trading currencies less of an effort, you will make bigger profits at the same time which is great news for all traders.