Forex trading can be undeniably stressful at times, especially when the market becomes volatile or if you find yourself on the end of a losing streak. Many traders keep going long after this stress sets in, which leads to poor decision making because of clouded judgment. Eventually, some traders even give up because they just can’t perform well enough under all of this pressure. If you’ve also been feeling tense lately, chances are that it’s affecting your profits more than you realize. The good news is that there are some simple steps you can take to make forex trading less stressful so that you can maximize your profit potential.
Simplify Your Strategy
Are you currently using a complicated trading strategy or one that confuses you? When it comes to your trading system, simple is actually better. It may seem as though more detailed plans work better because there are more components, but these systems are just really good at stressing traders out and causing confusion. If you use indicators, you may want to cut down on those as well. Having too much information to look at is overwhelming and leads us to overlook the most important things, so you can take it easier on your brain by switching to a simpler trading plan and decluttering your charts by removing less useful indicators.
Take a Break
Have you ever made a bad decision during a moment when you were feeling completely overwhelmed? Forex traders do this every day – they lose out on a trade and frantically try to regain the money by risking more, they enter a trade they shouldn’t because they can’t think straight, they start pulling out of trades at the wrong time because their brain feels foggy – you get the picture. Instead of forcing yourself to keep going when you’re overwhelmed, simply take a break and step away from your computer or phone screen until you calm down. You might worry that you’re missing out on trading opportunities, but you’ll really be avoiding the urge to make emotional trading mistakes. Then you can come back with a clear head without feeling like you’ve been pushed to your limits.
Try a Relaxing Activity Before Trading
If you’re already tense when you first log into your trading account for the day, the anxiety of trading will likely add to your tension, even if you’re making money. The best thing you can do is to start fresh each day in a great mood, so we suggest finding something that helps you relax beforehand. This could be as simple as drinking a morning cup of coffee or listening to your favorite song. Exercise is another popular option that makes people feel good, so consider yoga, meditation, going for a jog, or some other form of exercise to get those endorphins flowing.
Trade in a Quiet Place
It isn’t a great idea to trade with any type of distractions. Just think, children running around, dogs barking, loud background noise like a television or someone talking on the phone, a vacuum, or any other type of noise is annoying enough on its own when you’re trying to concentrate. Once you add the high-pressure act of trading to the mix, you’re bound to be left feeling stressed out. In this case, you’ll need to find a quieter environment so that you can fully focus and make the best decisions without having your brain jump from one thing to another. Also, don’t discount small distractions if your house is fairly quiet, as even social media notifications can be a pesky distraction for forex traders that are trying to concentrate.
Don’t Let Losses Rule You
Nobody is ever going to be happy about losing money, but forex traders need to know that this is going to inevitably happen from time to time. The important thing is that you’re making more than you lose and this can be accomplished even if you have more losing trades than winning ones. Of course, losing one or more trades in a row is still one of the best ways to become stressed while you’re trading. If you want to avoid this, you can start by accepting the fact that everyone loses sometimes, even the best traders out there, and promising that you won’t be too hard on yourself when this happens. Then, consider taking certain measures to reduce the frustration you feel over those losses. For example, you could risk less on each trade so those losses don’t hit so hard.
If you’re constantly doubting yourself as a forex trader by questioning your abilities in general along with every move you make, you’re always going to be stressed out. In order to be more self-confident, you’ll need to ensure that you can trust your trading strategy and spend time learning more about forex trading. If you aren’t confident with your plan, try testing it on a demo account to reassure yourself that it works or for a sign that you should change things up. If you want to test your own knowledge, try taking online quizzes, and research anything you get wrong. In the end, you’ll be more confident once you enter trades, so you won’t be as likely to pull out too early because you’re doubting yourself.