Strategy Video: The Biggest Detriment to Your Trading May Be Stress
• Stress has clear effect on us: narrow our focus, set off 'fight or flight', inducing panic
• These same physiological and psychological effects can lead to serious problems in our trading
• We discuss how stress normally effects traders and some ways to combat its influence on us
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
What is the biggest hurdle to a trader's success: no stops, a lack of strategy, central banks? For many, it is simply stress. Anxiety has clear psychological and physiological effects on us in every day life: taking more risk, resorting to 'fight or flight' and a narrowed focus. These same influences don't diminish when money and fast-moving markets are involved. They are heightened. This leads to common scenarios of bad trading habits. How many of us have experienced a situation where we are in a 'bad' trade and resort to hope or leverage rather than depend on objective analysis of the situation? In today's Strategy Video, we discuss the impact that stress can have on our trading and ways that we can potentially minimize it.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.