Dealing with Pressure: The Forex Trader's Way

Pressure is a huge part of human existence. Pressure to excel (or even just to do well) with each task. Pressure to meet deadlines, expectations, bills to settle, ideal weight, ideal waist line…and the list goes on forever. And right at this moment, I feel so pressured trying to come up with a blog post which is worthy of the reader’s time. The day went swiftly right in front of my eyes and I still haven’t got anything posted on ForexTradingLifestyle.

For some people, pressure pushes them to come up with fantastic results. More pressure = better performance. However, for those who find it difficult to act during a stressful period, the outcome may not be too favorable.

Same goes in trading. While pushing for pips, you can feel the tension in your neck and back. One would also have a scowling face, tight body muscles and an uncomfortable stomach. It is said that currency trading is 75% psychological and 25% methodological. So it would be best if you stir yourself out of pressure’s claws.

From babypips.com’s Dr. Pipsychology: When you feel stressed out because you are putting pressure on yourself, try reducing some of the pressure.

Tell yourself, "I'm not going to keep pushing myself. I'm just going to come up with a modest goal and work at it one minute at a time, and then maybe, one hour at time. I'll just give it my best effort."

 From aboutcurrency.com’s Jimmy Young: Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital. Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.

Dariusz Swierk, Ph.D: When you are emotional, you cannot use the advantage your system gives you and this chaos is a straight path to failure. If you noticed those issues in your trading, do at least these three things: a. Stop trading for some time (a few days minimum); b. Lower your stakes down to a level that does not cause grave emotions; c. Use therapeutic tools – relaxation and/or meditation.

These are some of the advices given by market experts to help traders ease out the pressure. I also asked Trading Mastermind founder Scott Shubert what he usually does when he is pressured. “I do yoga and chi gong. Stretching muscles releases muscle tension not only it is great for the body, it’s also great to clear one’s mind,” he said. So, when you feel the pressure coming, chill out…easy as that.

 

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