Hello everyone, colleagues!
Today we’ll talk about how to overcome the feeling of anxiety in trading. An important aspect in the fight against anxiety is to focus on the trading process, on preparing for trading, and not on the expected results. If you focus on the process, the results will take care of themselves.
What gives a trader confidence is not profitable trades and profits, but the knowledge that he is able to cope with failures if they arise. One of the most powerful tools for overcoming performance anxiety is to carefully monitor your trading days and turn your worst trades into learning experiences. When you accept the fact that losses will continue to occur as before, they will not look so threatening.
Poor trading experiences - poor trade execution, poor risk management, for example - are responsible for much of a trader's emotional state. Trading affects our psychology to the same extent that our psychology affects our trading. Each of us has a different appetite for risk.
Our attitude to risk is reflected in the size of our positions and the type of markets we trade. When markets become less volatile, they can frustrate the impulsive trader. When volatility rises, it poses a threat to risk-averse traders.
Market volatility affects sentiment volatility because the potential risk and reward of each trade changes significantly with volatility. Many traders like to boast of large profits in one trade.
Very often, such a profit is the result of gaining too much volume in a position. It may be that the deal was profitable, but the point is that it may have had poorly managed risks.
Risk and return are proportional to each other: the desire for large profits leads to large losses. The key to success is to trade within your risk appetite so that such swings do not affect your view of the market and your decision-making process. We always say, determine for yourself a comfortable risk, the loss that you are willing to lose and follow the rules.
When you follow the rules, analyze transactions, and set a comfortable risk, you will forget about anxiety during trading and trading will begin to bring you profit and pleasure. #psychologyoftrading#psychologyoftrading
