TradersCALM - Trader Generated Stress
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A common type of stress experienced by traders is related to the way in which a trader fixes and honours her/his rules. This type of stress is self-generated by the trader. Perhaps the best way of explaining this is by analogy.
When starting a new job at a new company, stress is a common experience. Sometimes this is because we are aware that we lack confidence in our knowledge about the 'rules' of the new job or even what categories of 'rules' apply and if we will be able to honour them. This can generate stress.
Stress self-generated by a trader can be expressed on a confidence continuum:
at one end of the continuum is a feeling of lacking knowledge or
experience of the rules and/or lacking confidence in being
consistent in following the traders own rules,
at the other end of the continuum is full understanding of the rules
and their role in the traders success, and full confidence in being
able to follow the traders own rules.
To reduce your stress and increase your calm consider how simple and comprehensive your trading rules are, and how you follow them.
Increasing levels of calm can often be achieved by simply developing rules that cover all possible events of significance - and being able to trust yourself to follow them.
Understanding that some trading methodologies/systems are calmer than others.
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