Stressing Out as an Option Trader?

Have you ever heard that stressing out is not good? Of course, you have! There are numerous emotional and physical disorders that have been linked to stress, including depression, strokes and heart attacks to name a few. While stress can be a motivator, it can obviously also be very harmful. It’s important to recognize the stressful nature of trading and consider things you can do to avoid unnecessary stress. Let’s take a look at a few stress-relieving measures you can use as a trader.

Do Not Trade

The first is the easiest of them all. When there is extra stress in your life, you should consider taking a break from trading. Extracting money from the market is difficult enough with a clear mind, but adding stress to the mix makes it almost impossible. I like to make the association of trading during a stressful time in your life and trading with money you cannot afford to lose. Both are ridiculously tough to do.

The pressure traders put on themselves to make money or even to have a “winning” trade can cloud their judgment and management of the trade. This allows the “emotional” trader to make the decisions, which usually does not end well. The good news is there are a few things you can do as a trader to combat being stressed.

Write a Trading Plan

It should come as no surprise that it’s crucial to have a well-written trading plan. I’m sure you did not expect me to say anything else, since we’ve talked so many times about this in the past. You need a plan so decisions can be made easily and with, we hope, limited stress. Trust me, nothing can ease stress as much as having a well-thought-out trading plan that you actually follow. Know exactly what you will do no matter what happens. That is what following a trading plan will do for you.

Take Time Off

Something simple you can do to relief stress as a trader is to take some time off. I see traders all the time who feel there is always a need to trade, especially those who trade full time. The market will always be there. Yes, it’s true you cannot make money if you are not trading. But if you are stressed about losing or even winning, what is the likelihood you will be successful?

Time to Meditate

Have you ever meditated? A simple meditation routine that you can get for free almost anywhere can relieve stress and not just for trading. It may be difficult to do, or to find the right time to do, at first. But if you make some time to do it, I guarantee it will help.

These are just a few things a trader can do to relieve stress. Trading is difficult and stressful enough, so you need to make it easier if you can. By doing the few things above, you will help yourself physically and mentally, I promise.

John Kmiecik

Senior Options Instructor

Market Taker Mentoring

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