Any time you deal with finances, there is an underscore of pressure. Nobody wants to fail, lose money, or make large financial errors in judgment. There is pressure whether you are trading your own money, trading someone else's money, investing in commodities or trying your hand in high yield investments. Money equals pressure. The big question is whether you are going to let the pressure get to you, or whether you are going to handle the pressure with grace and maintain your ability to remain rational and calm.
Pressure is another form of emotional response. While it might not seem that way, when we are under pressure, we either feel self-doubt, fear, guilt, or inadequate. Pressure doesn't always have to be a bad thing, as some people perform well under pressure. But in most cases, pressure is the weight that eventually cracks our shell and makes us bleed. Alleviating the pressure you feel is an important step in learning how to trade without emotional involvement. Because if you are feeling a good deal of pressure, you are bound to have an emotional response when the trades you are silently sweating either soar or crash.
The market is just an entity. It holds no personal judgments and it doesn't do anything intentionally to make your life easier or harder. The information that you can learn from watching the market is rather valuable but it isn't there to help or hurt you. So if you are feeling a good deal of pressure, it is not coming from the market. It is coming from you.
That means that it is your job to remove the pressure that you are feeling. If you are new to trading, you have to maintain reasonable expectations in regards to errors. You are going to make mistakes and you are hopefully going to learn from them. If you are not new to trading and you have been day trading for more than a decade, then you have to maintain reasonable expectations in regards to errors.
You are going to make mistakes and you are hopefully going to learn from them. Making mistakes is part of trading. Losing money, earning money, and failing to recognize a warning sign or learning to change your strategy mid stream is all part of learning to be a better trader, and that never ceases. You will always be learning and you will always make errors. That means that your pressure is coming from a lack of forgiveness for any mistakes you make.
Intense self inflicted pressure is actually a trait that many of us learned in our youth. Whether we were seriously involved in a sport or our academic performance was vital to our happiness (or how happy our parents allowed us to be) we learned how to apply pressure and how to not forgive our own human-ness.
As adults, that self inflicted pressure really doesn't do us a whole lot of good. In fact, for the most part it works against us. When we are relaxed, focused, and making decisions from a rational place, we are more able to make better decisions and to work out our own issues as we face them throughout the day. We can only get there is we hold self forgiveness a bit higher on our priority list.
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No. of Times this article has been viewed :
103
Date Published :
Jan 5 2009