Mastering trading stress...

[cindy987]

Interesting interview I just read:




Interview with Ari Kiev by Larry Jacobs


What is traders stress and why is it a problem?
The nature of stress is part of the human condition. In trading you are dealing with a lot of uncertainty, unpredictable events and information. You are dealing with the volatility of the markets, the ups and downs. You possibly may be loosing a lot of money so it creates a lot of stress for the people involved in this activity. Over time the people that are successful at it learn how to master stress. They use a variety of techniques in getting comfortable in reducing stress. They learn how to recognize it so it does not interview with their decision making or performance. It is important to know how stress can affect you.

What are the stages of stress?

Initially the person will feel anxiety, depression, shock, confusion and locked and unable to decide. In a later stage, for example, with someone that has had a major drawdown, they may always be on alert, constantly checking and rechecking their environment, can’t concentrate, emotionally numb. They have the tendency to deny the event in front of them. They may fell empty and depersonalized. It depends on how serious the loss is and how difficult the market is. In the later stage the person may not be able to sleep. They will stay up all night and replay their trades over and over again and ask to themselves, what they should have done. The person may get so depressed that they need medication. They may need to get out of the market to heal themselves.