Have you ever felt nervous when trading? Do you experience butterflies in your stomach whenever you plan to execute a trade thus resulting into emotional imbalance of the mind?
- If you trade financial assets, you must have felt concerned or restless when trading. This is called trading anxiety and every trader has to go through it in a stage of his/her career.
- Anxiety refers to a state of uneasiness or nervousness for something. It can also be defined as a feeling of restlessness accompanied by anxious expectation and desire for something- especially when such a thing is deemed precious or valuable.
- Trading anxiety is a feeling where traders feel disturbed and worried when trading money or financial assets.
- Every trader will face anxiety at some point in their careers. Although new traders feel nervous and anxious about their money and investment, anxiety isn’t left for them alone.
- Even the experts and top traders battle anxiety secretly and this is why you shouldn’t ignore anxiety as a trader. Some traders have been successful in overcoming anxiety while the efforts of other traders have been futile.
- Anxiety is one of the problems that beset traders. Anxiety is not just a problem but an enemy which must be dealt with.
It is normal for anxiety to set in because we are human with blood running in our veins and not machines or robots programmed to work without feelings.
There is no human being that hasn’t gone through stress, disappointment, frustration and anxiety. As long as we are humans, we may battle fear and anxiety at some point in our lives.
Reasons Why You Shouldn’t Ignore Anxiety As a Trader
- Many traders would hop into this page and bounceback because they feel that everything is running smoothly for them and so, they aren’t battling from any form of anxiety.
- Whether you are battling with anxiety or not, it is highly important that you take anxiety seriously and not to ignore it.
- Anxiety can set in at anytime and if you don’t know how to deal with it, you may run into financial disaster.
- Therefore, it is imperative for you to read this article to the end to know how anxiety cripples traders and to know how to deal with it. Also, you can recommend this guide to help other traders to defeat emotional problems such as depression, emotional imbalance, stress, anxiety and frustration.
Here are some reasons why you shouldn’t ignore anxiety.
- Anxiety is a virus that kills your confidence. Before now, you were known as a courageous and well-calculated trader who takes the bull by the horns.
- But today, you aren’t bold in making critical trading decisions. It is dangerous for you to underestimate and ignore anxiety because it can weaken your confidence.
- Anxiety makes you feel worthless. Anxiety shouldn’t be taken for granted because it can take away your hope and make you feel miserable. Consequently, you will be deprived of make good trading decisions and consistent profits when you are not properly motivated.
- It can lead to constant occurrence of trading mistakes. Trading anxiety will not make you trade in the right state of mind, thereby resulting into accumulation of financial losses.
Things That Can Cause Anxiety
What are the things that can cause anxiety? If your anxiety is natural or biological, you may have to consider seeking a professional psychologist. Here are some factors that can likely cause trading anxiety.
1. Execution of Large Position Size.
What is the size or volume of the position you execute your trades? Your position size is very important as your trading plan itself. Traders are recommended to choose small position sizes when trading. However, some traders are fond of executing large position sizes and this can cause anxiety when things start going wrong.
2. Inadequate Knowledge.
- Regardless of your level of experience or expertise in trading, it is expected that you must have had a form of coaching or trading.
- Coaching helps to provide you with relevant information and details of what, how and when to trade. Without coaching or training, you will be lacking knowledge of trading methods and principles.
- It is almost impossible for a trader with a deficiency in trading knowledge to become successful. If you are not properly trained and tutored on how to trade, there is a tendency that you will lose your financial resources. Subsequently, you will develop anxiety when you worry about your financial losses.
3. Gambling Mind Mentality .
- Some traders have unprofessional attitudes like trading like a gambler. Although trading can be full of uncertainties, therefore it's highly advisable to make proper analysis and execute trades with higher winning probability rate.
- Take well-calculated risks with full regard to your trading plan and market exploration. whenever you stake money and start gambling on trading options, then you are playing a game of chance. Trading is not a game of chance or luck, erase the gambling mind mentality because the odds of winning don’t always favour the ‘gambler’.
4. Seeing Trading as a Quick Process To Making Wealth.
- Perhaps, you ventured into forex trading because you read the stories of successful traders. Or maybe you were wooed by ‘sharks’ who tricked you into trading by promising you huge profits on your investment.
- Beginners and new traders are often tricked into believing that trading is the quickest way of making wealth. Although, you can become successful and make wealth by trading, yet trading shouldn’t be seen as a short route to wealth.
- If your expectation is based on making money fast by trading financial assets, you may battle anxiety disorder if your expectation is cut short.
5. Not Following Your Trading Plan.
- Even when some traders have a solid trading plan, they don’t seem to follow it. Apparently, a trader who fails to stick with his/her trading plan has no confidence in it.
- Lack of confidence in your trading plans and trading skills make you feel anxious. Can you hold on to your trading strategy if it doesn’t work as planned?
- Some traders have successfully held on to their trading plan even when it seems like it's failing. Trading anxiety arises when traders abandon their trading plan in a frantic way.
- Not sticking to one’s trading rules and strategy can result in poor confidence when executing a trade. You have a better chance of making profits when you follow your trading plans.
6. Negative Programmed Mindset From the Society.
- Having a negative mindset towards trading can cause anxiety and also hurt your career. Some societies, online trading forums and groups express the belief that it is difficult to achieve success in trading.
- Consequently, some traders have been indoctrinated to believe that achieving success in trading is hard. When traders believe that it is impossible for them to become successful in trading, they get restless and start pondering on a way out.
7. Overtrading .
- Overtrading can be defined as the buying of more goods and commodities than you can actually sell. Also, it refers to the process of trading for long periods of time.
- Overtrading can affect the emotional balance of a trader. When a trader trades for several hours, it weakens his brain and the outcome is disastrous.
- Traders can avoid overtrading by creating a timetable for trading and having a schedule of when and when not to trade.
8. Fear of Losing.
- Apart from greed, fear is another natural cause of anxiety. The fear of being broke, the fear of running into a loss, the fear of the unknown is the reason why many traders are faced with anxiety.
- Many traders fear that their profits would vanish into thin air by executing a trade. Anxiety can be avoided when you erase the fears of uncertainties from your mind.
9. Overambitious Attitude.
- Lastly, you can suffer from anxiety attacks if you are too ambitious. Extreme zeal and desire to make profits at all costs can cause anxiety.
How To Handle Anxiety As a Trader
Although anxiety is a problem faced by traders, humans and it can be curbed. If you are faced with anxiety problems, you can deal with it using the following ways.
- If you are guilty of overtrading, spend more time to relax your nerves and engage in recreational activities such as exercises.
- Do the things that make you happy. You can deal with anxiety by spending quality time with your families and friends.
- Do not consume all news contents. Negative news reports such as a harsh economic policy, fraud, corruption and global economic meltdown can bring fear and anxiety to any trader. Therefore, ensure you read good news reports.
- Get coaching and expert trading from a professional trader to teach you and acquaint you with the latest trading trends, news and information.
- Have a good diet. Anxiety can make you grow weary and look sick, you can handle it by maintaining a healthy diet.
- It is impossible for anxiety to vanish completely, hence, it may come from time-to-time based on your present conditions and situations. Therefore, it shouldn’t be ignored.
- A lot of traders are suffering from anxiety issues, but they are not aware of it. The only way you can deal with anxiety as a trader is to stick with your trading plan and eliminate biased and sentimental emotions.
- Additionally, you can seek professional advice to help you get rid of anxiety.