- High pressure and stress is a part of the trading environment. Stress reduction is not a viable strategy. The approach instead is to build a person’s resilience and ability to cope more effectively with the pressure and stress that they are encountering.
- This is done by a process of exposure to the stressful events, and then recovery. The recovery process will prepare you to engage again but with a higher stress threshold.
- Build your stress exposure over time by gradually building the demands on your trading — slowly increasing your position sizing, complexity of trades, diversification, etc.
- Use relaxation techniques to enter a restorative state where your mind and body can recover.
- Look after your nutrition, exercise, sleep, get balance in your life with friends, family, other hobbies.
- Consistent performance is achieved when you have a healthy oscillation between positive peak performance states, and periods of recovery.
Archives of “stress management” tag
rssStress management
A lecturer, when explaining stress management to an audience, raised a glass of water and asked,
“How heavy is this glass of water?” Answers called out ranged from 20g to 500g. The lecturer replied,
“The absolute weight doesn’t matter. It depends on how long you try to hold it. If I hold it for a minute, that’s not a problem. If I hold it for an hour, I’ll have an ache in my right arm. If I hold it for a day, you’ll have to call an ambulance.”
“In each case, it’s the same weight, but the longer I hold it, the heavier it becomes.” He continued,
“And that’s the way it is with stress management. If we carry our burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won’t be able to carry on.” (more…)
A GLASS OF WATER
A young lady confidently walked around the room with a raised glass of water while leading and explaining stress management to an audience. Everyone just knew she was going to ask the oft repeated question, ‘half empty or half full?’ But she fooled them all…
“How heavy is this glass of water?” she inquired with a smile.
Answers called out ranged from 8 oz. to 20 oz.
She replied, “The absolute weight doesn’t matter. It depends on how long I hold it. If I hold it for a minute, that’s not a problem. If I hold it for an hour, I’ll have an ache in my right arm. If I hold it for a day, you’ll have to call an ambulance. In each case it’s the same weight,but the longer I hold it, the heavier it becomes.” She continued, “and that’s the way it is with stress. If we carry our burdens all the time sooner or later, as the burden becomes increasingly heavy, we won’t be able to carry on.”
“As with the glass of water, you have to put it down for a while and rest before holding it again. When we’re refreshed, we can carry on with the burden – holding stress longer and better each time practiced. So, as early in the evening as you can, put all your burdens down. Don’t carry them through the evening and into the night… pick them up tomorrow. Whatever burdens you’re carrying now, let them down for a moment. Relax, pick them up later after you’ve rested. Life is short.” (more…)
Emotional Intelligence
A recent review highlighted different models and definitions of emotional intelligence. Among the features associated with emotional intelligence are:
* Ability to accurately read emotion in others and respond in empathic and appropriate ways;
* Ability to effectively assimilate emotion in thought and action for coping and problem solving;
* Ability to regulate emotion, channeling it into motivation, persistence, and effective relationships.
The traits assessed by questionnaires measuring emotional intelligence are wide ranging:
* Adaptability – Flexibility and willingness to adapt to new conditions;
* Emotional Regulation – Ability to control emotions and their expression;
* Low Impulsiveness – Ability to refrain from giving into urges;
* Self Motivation – Tendency to persist in the face of adversity;
* Social Awareness – Ability to effectively network with others;
* Stress Management – Ability to withstand pressure and perform effectively;
* Empathy – Ability to take the perspective of others;
* Optimism – Tendency to look on the bright side of life;
* Happiness – Tendency toward cheerfulness and satisfaction. (more…)
10 Tips For Managing Trader Stress
Traders should never underestimate the role that stress plays in their trading. Many more will succeed or fail based on their ability to handle stress than will have their winning and losing determined by a robust method, mentor, or risk management. It is even possible for a trader to win consistently and still not be able to win in the long term due to the fact that they can not get comfortable being uncomfortable with capital on the line with an unknown outcome. Others will simply burn themselves out stressing excessively while losing and also stressing when they win scared they will give back their profits. If you are going to be a successful trader you will need to manage the weakest link in any trading system: the trader. Stress management is the traders weakest spot. You have to be able to handle the heat of trading so you don’t melt.
Here are the ten ways to manage your stress in trading:
1). When you get over excited calm down by concentrating on your breath.
2). Never trade so big that one trade will make or break your account, trading career, or lifestyle.
3). Only trade systems and methods that you fully understand and have faith in for profitable in the long term.
4). Visualize yourself being a success as a trader.
5). Slow down your trading to a pace that does not rattle your nerves.
6). Connect with like minded traders that understand your battles and goals.
7). Study and do so much homework about trading that you begin to have unshakable confidence in yourself.
8). Stop doing what does not work in your trading and start doing more of what does work for you and makes you money.
9). Do not let others shake your confidence, do not accept any unsolicited advice from anyone, stick to your game plan.
10). Accept your losses quickly when stops are hit to avoid emotional damage and stress from big losses.
Do everything you can to prevent the damaging effects of stress on your trading and life. (more…)
Stress management
A lecturer, when explaining stress management to an audience, raised a glass of water and asked,
“How heavy is this glass of water?” Answers called out ranged from 20g to 500g. The lecturer replied,
“The absolute weight doesn’t matter. It depends on how long you try to hold it. If I hold it for a minute, that’s not a problem. If I hold it for an hour, I’ll have an ache in my right arm. If I hold it for a day, you’ll have to call an ambulance.”
“In each case, it’s the same weight, but the longer I hold it, the heavier it becomes.” He continued,
“And that’s the way it is with stress management. If we carry our burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won’t be able to carry on.”
“As with the glass of water, you have to put it down for a while and rest before holding it again. When we’re refreshed, we can carry on with the burden.”
“So, before you return home tonight, put the burden of work down. Don’t carry it home. You can pick it up tomorrow.”
“Whatever burdens you’re carrying now, let them down for a moment if you can. Relax; pick them up later after you’ve rested.”