Managing Trading Stress

Notice what happens to your 'state' and 'behavior' when a small string of losses accumulates in a short period of time. Our hardwired response, designed as an adaptive evolutionary reflex, driven by fight/flight is to try harder, narrow our focus and increase concentration, energy and intensity on the problem, shifting thoughts into 'potential' consequences or impacts. This inherent pattern does not serve a trader very well, and can lead to compounded mistakes because you are in a 'protective state.'



You need to stay in the feeling of being in the 'flow' and 'rhythm' which will allow you to become more resourceful in those adverse moments. By staying resourceful, your field of focus enlarges taking in a broader range of information, you are able to access your intuitive abilities and recall your systematic methods with heightened acuity and think more rationally about outcomes, maintaining your focus.


There are techniques to manage 'stress states', getting you back into your 'flow' where your cognitive recall is sharp and intuitive:

1.Deep Practice -  by knowing your methods extremely well you will always exercise better judgment in that moment. Your judgment is the outcome of your experience and the more you've learned, the better your judgement. This knowledge keeps you relaxed in moments of stress.
2.Triggering a 'Resourceful' State - performance is enhanced in any area when operating from a place of confidence and a state of relaxation. Even before you go into your trading day, mentally recall experiences when you were at your best and flood yourself both visually/kinesthetically with that memory. This will put you into a resourceful state.
3.Learning about your system and trading rules by having a plan.