3 Common Sources Of Trading Anxiety(And How To Address Them)

This is the narrative — a high-level baller trader living in some epic penthouse, driving his Lamborghini down Sunset Blvd and making it rain Benjamin Franklin’s left, suitable and centre on yachts. What an episode of Billions, yo! The harsh truth is that, unless you are illegally running a bucketshop like the Wolf of Wall Street, it takes years to even decades in many cases of putting the work and slugging away before becoming successful as a trader. That is if you do make it. Without trying to be negative, it is a fact that they say that 90% of traders are destined to fail, and only around 10% ever make any money. Success in this sense is subjective, and a pragmatic trader will generally suffice for positive expectancy or consistency in the long haul.

In closing, aspiring to be something unrealistic like Crazy Rich Asians in under 12 months of trading will never end well. Build moderately sized trading targets and an outlook that is more in line with the time, effort, development work, and capital required to remain successful. Do not think about others; write your trading “business plan” with attention to how much you have and your limitations.

Lack of self-control

Traders can often do their fair share of the research and testing on enough trades to make a valid strategy. As always, the problem is not the plan itself… it’s sticking to it. And who could blame them? When the market moves in giant leaps and bounds, ignoring all the rules can be very tempting after such massive moves are simply too good a juicy detail. This type of thinking, however, can lead you to act irrationally and overtly. However, persistent acts of FOMO may lead to a vicious cycle, gaining unplanned trades and several drawdowns, which can then transition into the despair phase. To avoid this, some trading psychologists recommend making one high-quality trade daily at most. That way, you must go through all the potential setups and select the best possible shot, promoting better self-discipline.

Lack of self-trust

For other traders, the lack of trust in oneself can be a source of anxiety as well. If you are listening to a bunch of trading gurus reciting get-rich-quick schemes and trying to mimic all the setups from every person in their chat room, then take note…you have lost your ability for independent thought. The winners can put complete trust in their capacity to predict the market and make trades. How can you determine which trades to enter when those signals that are your crutch aren’t there? It is okay to work with a coach or mentor when you are starting so that they can walk you through the different things and trade management; however, over time, using someone else as an excuse is why your trading has limitations. Maybe it might be something one should look at to improve their decision-making based on the new algorithm in unison with some of what made them successful before. Stress and pressure are a constant in every trader’s life, but now more than ever, it has become paramount to stay self-aware of the causes of that stress and know what kind of action needs to be taken. Also, make sure to remain attentive to your mental state and breathe!