I feel that stress management is the toughest job for a trader. Personally, in most the time I fail to control my stress when I am in consistent losses. Do you have any suggestion for me?
Hi! Someone asked a similar question. You might find helpful suggestions here:
Have you gotten into exactly why it’s stressful for you? Aka would a some sense of control like a stop loss help? Or is it more the thought that you’re losing the stressful part? Also: are you demo or live trading?
As a learned colleague of mine on this forum often says, the first objective should be to learn how not to lose money. Given that demo accounts exist, did you use one to gauge how much you are losing and at what rate you are losing money?
Another way of looking at this is “what is the value of your time”? If you flip burgers for $15 an hour, then a $15 loss is just another hour you need to work in a job (Just Over Broke), as the cost of your education. If you earn $100 an hour as a consultant, a $15 loss is neither here nor there.
I stopped losing money in Forex when I decided to concentrate on a timeframe ranging from a few days to a few months. And then I decided not to leverage my trades. You could say that I don’t actually trade Forex, not in the way the majority of people on this forum talk. But I do trade Forex, gold, silver, crypto and haven’t traded shares for over 40 years. I am not stressed at all. I get more stressed talking to a property agent who told me my tenant just left and trashed the place. That is a much bigger cash flow headache than my level of trading.
Read and learn from Peter Castle book The Zen Trader.
In a nutshell, the only control traders have is managing their risk exposure. A Zen mindset accepts emotional challenges without stress.
Hello my friend!
I guess that is not just for a -forex- trader, it can affect all aspects of your life.
Easily find the reason and avoid it. That might be funny but that is the whole procedure.
write down the reasons, try to solve them completely and do not chase them! It will work, spend some time on that and you’ll see the change.
You have to know what you can lose in advance for every trade and should first mentally afford to lose, then take part in the trade. Or trade small amounts using robot because handling position manually may be tough if you are not tolerant to loss. Also take losses as a fixed costs in a regular business, i.e. you get practice and invest in knowledge to get better reward in the future.
To me, a preplanned trade is the solution. I won’t get stressed out even if it’s a losing trade because I’ve done all the things I’ve planned but the result is just not in my favor. But sometimes, I plan a trade but I didn’t execute it as planned. This is the one that can get very messy.
So the conclusion is, always plan your trades. Either the trade work or doesn’t work is to be determined later. (Unless you have a crystal ball. Haha.)
For me, start with a clear plan that outlines your entry and exit strategies. Use smart risk management, like setting stop-loss orders, to avoid big losses and the stress that comes with them.
OMG this is hilarious. This is the first time I’ve ever heard of this
Yup this is exactly what happened to me. Got killed by a long cable trade.
Have you tried taking regular breaks or practicing relaxation techniques?