Article How Stress Can Ruin Your Trading

T2W Bot

Staff member
1,504 117
Trading is a stressful business, none of us would deny this. This article looks at ways of reducing stress levels to ultimately make us more relaxed and profitable traders.
The Health & Safety Executive defines stress as ?The adverse reaction people have to excessive pressure or other types of demand placed on them?.
Trading is precisely the kind of profession that provides plenty of ?the excessive pressure? that causes stress. And unless managed properly, stress can have an extremely negative effect on your ability to trade effectively.
Stress can make you excitable, anxious, jumpy and irritable ? not exactly the ideal attributes conducive to profitable trading.  Stress can interfere with your ability to formulate judgments and makes you more accident-prone and less able to make good decisions.
Proper management of stress can significantly help with many of the classic mistakes in trading such as letting losses run, cutting profits too early, being too fearful to take a trade...

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1 0
great ..thanks alot ,,,

here is something i tried and it's more than great :
1st - do ur best
2nd- believe in this :
u will get only what God gave u
u will never get what God didn't give u

do that and u will find every thing u get Tasetfull
the sme feeling when u get nothing or maybe lose
thanks again

foroom lluzers

Veteren member
3,611 137
Very good article.

Human automatic nervous system is not wired to handle stressful mental activities when there is any sort of perceived threat.If you are sitting in front of a computer screen watching price go down and account value erode, perceived threats are still there , due to losses ,stop lots getting hit , being wrong , trading mistakes , dealing with uncertainty , failing to follow exit plans , following a plan or failing to follow a plan , running from losses ,cutting your profits and taking profits early . This will trigger a stress response of fight or flight.Once your fight or flight response hits, you won’t always behave logically and rationally.

Market induced stress can be caused by you being too involved in your routine and the second by second moves versus staying focused on the bigger picture.Trading stresses us out. Stress leads to a cluster of natural defensive reactions , and to seek out seemingly safe situations that actually offer the least chance of gain. An example of natural defensive reaction , is a sudden reactive short trade in the short time frame done by the automatic mind traps , when your system trade open is long.

Stress response in trading is fight or flight.
Fight :increase position sizes , it is automatic natural response
Flight:close trade early

Traders under stress are often caught in automatic mind traps.There is an underlying layer of consciousness—call it the automatic mind—that processes information automatically without conscious awareness. We engage our automatic mind in virtually everything we do.

The first secret of reducing trading stress is to rewire your trading brain , to remove all other thinking patterns and thoughts , these thoughts become reality in trading .

Stress induces an Amygdala Hijack , it is an immediate and overwhelming emotional response out of proportion to the stimulus because it has triggered a more significant emotional threat. The amygdala is the part of our brain that handles emotions. During an Amygdala Hijack, the amygdala "hijacks" or shuts down the neo-cortex (the command centre of the brain).Mistakes are made especiality when your brain is not in reality

How stress can shut down the command centre in the trading brain.


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foroom lluzers

Veteren member
3,611 137
Those interested in learning about stress may find a search on google very informative.

Search:stress researcher robert sapolsky pdf



1 0
It's enough money that they can walk away from trading and do something else. ... Otherwise, your trading losses may become financial ruin
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