Traders have access to the forex market 24 hours a day, 5 days a week. As a result, they are certain to face risks and uncertainties every day of the week. We also know that uncertainty is inversely corelated to comfort levels – the more uncertainty, the more uncomfortable you feel, which in turn makes you more likely to fall victim to stress. Dealing with stress is thus one of those things that we as forex traders have to do, whether we like it or not.
So, now that it has been established that you will be facing stress in forex trading, isn’t it best to come to terms with it and work towards managing it? And how exactly can you work to transform this negativity into something positive, this weakness into your strength?
Although a certain level of stress is inevitable in trading, it is a hurdle that needs to be put aside and overcome by every trader who wants to be successful. As a negative emotion, it attacks your rationality, motivation, concentration, and emotional state as a trader. But if you can use it to your advantage by being better to manage stress than others, you are most likely on the right track.
To help you cope with these negative feelings that so often ruin an otherwise positive trading experience, we have therefore here listed our four best tips on how to manage stress as a forex trader:
Have a plan
If you do not have a plan, you feel that you are not in control, and that is where the stress creeps in. Having a plan is an efficient thing to do, and it eliminates many factors of stress. Additionally, having a strategy and a plan greatly increases your chances of success. Your plan should be based around your goals, available capital, time horizon, and the amount of risk you are willing to take.
Exercise – physically and mentally
A good full-body workout in a gym can be an excellent stress reliever. If you are not too keen on going to the gym, there are many alternatives available, such as running, swimming, yoga, or even an early morning walk.
Along with the physical workout, you should also exercise your mind. This can for example be done by playing games like chess, which sharpens your mind and helps you make better strategies.
Just a few minutes off the screen can do wonders for your stress relief, as staring at the charts and stats all day in order to find that good trade can be stressful. You can plan these breaks, and even put alarms to make sure you do not forget about them.
Without breaks, chances are you start making mistakes, which we all know can be detrimental to your trading success. By taking a break and doing something completely different, however, you revitalize your mind and can come back with the laser-like focus that you need to succeed in forex trading.
Work on your self-confidence
If you do not have confidence in yourself, no one else will – or at least it will feel that way. Lack of self-confidence leads to self-doubt, and that can be a major hindrance to your growth – both in terms of your career and from a personal perspective.
If you start doubting and second-guessing yourself, you are likely to become more indecisive. To succeed, you need to develop a more positive mindset, and one method through which you can do this is by learning as much as possible about your craft – forex trading.
Losses are not the end of the world
You win some, you often need to lose some. You cannot win every game, every competition, and every trade. There are two ways you can go about a loss – you can let it take you down and stress you out, or you can embrace it, analyze it, learn from it, and make sure you do not make the same mistakes again.
Join Learn to Trade’s forex trading workshop
To learn more about forex trading and the mental aspects that are so important to succeed at it, sign up today for one of our free forex trading workshops around Australia. Thousands of students have already been through our training, and we would be thrilled to welcoming you there as well!