As a trader, have you been seeing your trading life to be a stressful type? Or are you looking for actionable tips to help you avoid a stressful trading life? I’d advise you pay closer attention to the tips below.
Due to the high rate of disappointment in the forex market, a lot of traders have tag trading to be a stressful act. Yes, it’s an undisputed fact that analyzing the forex market is not as easy as it sound, but there are proven ways/methods to avoid such stress to the last.
Here are 6 tactical ways to avoid such a stressful trading life.
#1 Carefully plan prior to trade: I have had of this method before, sure you have; but have you acted on it? In fact it’s one of the surest ways to avoid a stressful trading life. That is, to carefully plan ahead before engaging into any kind of trades.
According to some Market Expert s, most of the traders complaining about stressful trading experience are victims, because they jump into trades without understanding the language of the market.
The question in your mind will be, does the forex market have a language? Sure it does. And it can be properly understood when the trader plans before executing a trade.
There is a saying that says “whoever fails to plan, plans to fail.” Now, if you really want to resolve your stressful trading life, it’ll definitely cause you nothing other than you to prioritize planning any of your trade before you dive into them.
Here are examples of the market language important for you to understand, they’re as follow:
- When to enter the trade?
- How to enter a trade?
- When to quit a trade? And so on.
#2 Be certain of how much you’re willing to lose: Oh yeah. We sometimes ignore this aspect, but sincerely, they contribute much more to our constant stress experience. Although, there are many forces that’ll cause your indecisiveness on how much you’re willing to lose, but a major force is GREED.
It whispers gently into your sub-conscious mind. For example; don’t you need money, don’t you want to make more? Have you forgotten that the forex market is the more you risk the more you earn. Don’t risk $50 go for $500. In fact, it blinds you from seeing the negative side of your unprecedented action.
A trader who lacks discipline will plainly fall for it. And if it happens that the market changes direction, such act could result to significant losses that serve as a core of stress to the trader.
To be on a safer side, always stick to that amount you are capable of losing without regret. And develop a strong resistance towards being tempted to change your set price.
Note: Don’t risk a trade if you’re not willing to lose.
#3 Tag your weekend as a No-trading day: One of the tactical ways to trade a stress-less life is to avoid the end of the week trades. Meanwhile, most professional have proven and strongly kicked against trading over the weekends.
This is so because it requires a serious mental analysis. This is a fact. However, in a situation where by you’re sure or certain of your analysis, you can plan for the weekend trade.
#4 Don’t forsake your money management discipline: To avoid the headaches and other serious mental and body stress, it is advisable that you don’t joke with your money management discipline. Remember that you primary aim of trading is to grow your investment. This is the more reason why you have to consider your money management seriously.
#5 Get abreast with the current Events and economic release: One of the surest ways to ease your stress –is by getting abreast with the current events and major economic data. Also, it is very important that you note that one of the primary factors affecting the variation of price movement is the economic health of countries whose currency you’re trading upon or against.
For example, you reside in United kingdom, and you’re trading USD/JPY. It is very important that you understand those exciting variables affecting the price movement of the individual country currency.
#6 Always stick to your trading plan: Today, creating an effective trading plan is way easier than you think. But the problem arousing a certain level of stress is –sticking to your trading plan. Yes, I know it’s sometimes challenging, but you have to stick to your trading plan to ease your stress.
In conclusion, just by sticking to your trading plan, being current with events, money management disciplined, No weekend trade and to carefully plan before trading, are sure ways to avoid a stressful trading life.