{"id":89939,"date":"2016-05-25T05:56:15","date_gmt":"2016-05-25T09:56:15","guid":{"rendered":"http:\/\/countingpips.com\/?p=89939"},"modified":"2016-05-20T05:56:40","modified_gmt":"2016-05-20T09:56:40","slug":"how-to-reduce-stress-in-forex-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/05\/how-to-reduce-stress-in-forex-trading\/","title":{"rendered":"How to reduce stress in Forex trading"},"content":{"rendered":"
May 25, 2016<\/div>
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By Admiral Markets<\/b><\/p>\n

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Dear Traders,<\/p>\n

Are you tired of pulling your hair out due to stress?<\/p>\n

Have you ever broken a sweat while trading?<\/p>\n

The losses won’t stop coming.<\/p>\n

The days seem to be getting shorter and shorter.<\/p>

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Your work and family responsibilities are there to remind you that trading should not be the only thing on your radar.<\/p>\n

I bet you have felt this at least once during your trading career, right?<\/p>\n

Trading is definitely stressful, so we traders should strive to keep our stress levels under control.<\/p>\n

The idea of losing real money in a Forex trading may lead to frustration and even worse, anger aimed at yourself or the markets.<\/p>\n

Spiral of emotions<\/h2>\n

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Trading can be a grind.<\/p>\n

In order to trade properly, your emotions should optimally stay optimistic.<\/p>\n

When you start making profits, your emotions will reach the stage of enthusiasm and passion.<\/p>\n

Think of it as price action.<\/p>\n

As soon as the price touches resistance, you should think about either booking your profits or protecting your trade.<\/p>\n

The same happens with the emotional guidance scale.<\/p>\n

When you feel very excited about the trade and profits, you should think about exits or protecting your trade (scale out).<\/p>\n

Many traders simply ignore the emotional scale, become greedy and make newbie mistakes instead of making profits.<\/p>\n

One of the typical mistakes is also trading new setups, when you’re at the stage of euphoria.<\/p>\n

Trading under these circumstances will do more harm, because you trade emotions not the price.<\/p>\n

Some traders believe that making money calls for home-run trades.<\/p>\n

Maybe they have a friend who bought something for $50 and sold it for $500.<\/p>\n

Traders love to talk about their home-runs, while forgetting to mention their strike-outs.<\/p>\n

They can still wish for a lottery trade that will mean early retirement.<\/p>\n

But this is a trap.<\/p>\n

Things that position traders for big wins:<\/p>\n

…may also expose them to big losses…<\/p>\n

…and it usually happens when they experience euphoria.<\/p>\n

Optimal emotional level<\/h2>\n

Making a trade while being optimistic will:<\/p>\n

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  1. make you feel good when you make profits; and<\/li>\n
  2. in the case of a loss, it won’t suck you into a spiral of doom.<\/li>\n<\/ol>\n

    The worst thing you can be is pessimistic<\/strong><\/em>.<\/p>\n

    If it happens, you are one step closer to the negative emotional spiral.<\/p>\n

    Remember, you need to think about it in terms of price action.<\/p>\n

    Boredom is a negative spiral resistance and contentment is a positive spiral support.<\/p>\n

    Whenever you feel losing a trade, don’t ever let your emotions break the support.<\/p>\n

    Breaking support, will lead you into the negative emotional spiral.<\/p>\n

    As price action goes against you, your emotions are breaking the support and going lower down the negative spiral.<\/p>\n

    If you don’t react and stop falling, you will invariably become trapped in a spiral of doom.<\/p>\n

    Spiral of doom<\/h2>\n