If you have done any trading whatsoever, you know it puts you in stressful situations. And as you also likely know, there are numerous emotional and physical disorders linked to stress, including depression, strokes and heart attacks. While stress can sometimes be a motivator in trading or life in general, it can also be extremely harmful. Let’s look at a few simple things you can do to avoid unnecessary stress while trading.
Take a Break
This one is the easiest of them all. When you are experiencing extra stress from trading or other sources, consider taking a break. 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 with trading with money you cannot afford to lose. Both are ridiculously tough if not impossible situations to succeed in.
Trading Plan
This may be no surprise, especially to those who know me well, but another way to reduce stress is to have a well-written trading plan and follow it. I don’t want to hear any excuses with this one. We have talked so many times about it in the past, and it bears repeating. You need a plan to make structured decisions, which help limit stress. Trust me, nothing can ease stress as much as following a well-thought-out trading plan. And that is the key: You have to follow the plan too. Know exactly what you will do no matter what happens.
Time to Meditate
Have you ever meditated? I absolutely love it. A simple meditation routine that you can get for free almost anywhere can relieve stress and not just with trading. I use meditation to lower my blood pressure. It may be difficult to do at first or to find the right time, but I can almost guarantee it will help.
Final Thoughts
The pressure traders put on themselves to make money or have a “winning” trade can cloud their judgment in taking the trade and the ever-important management of the trade. This allows the “emotional” trader to make decisions, which usually does not end well. Trading is difficult and stressful enough, so you need to make it easier any way you can. By doing these few simple things, you will help yourself out immeasurably.
John Kmiecik
Senior Options Instructor
Market Taker Mentoring
