Let’s be honest: forex trading is stressful. If you decide to try your luck trading, you will encounter many maddening situations. Sure, you might know a lot, but forex is a game of probability, and though your analysis might be correct, the eventual outcome might be entirely different. In a second you’ll learn how to deal with the stress, fear and frustration in forex trading. Let’s go!
If you’ve even entertained the idea of starting your journey with Forex, then let’s assume that you know a lot about markets and how different factors could influence the state of affairs. Let’s say that you have a plan. According to the experts at Engine Forex, if you don’t have much experience, your first wins or losses will probably cause you to react in one of those ways.
If everything goes according to the plan, you will soon overestimate your ability to predict the unpredictable, and you might lose a great deal of money, and start doubting everything.
If despite the careful analysis of all the contributing factors, your prediction were proven incorrect, you might be more reluctant to take any risk in the future.
There’s nothing wrong with you if you react this way – we, humans, underestimate the extent to which we are governed by emotions. Unfortunately, when it comes to forex trading, you’ll need to strike a balance between adjusting your plan after your every failure, and not reacting at all.
If you want to make a profit, you cannot hesitate too long, otherwise, the trend might reverse, but it doesn’t mean that you should be jumping into trades without a second guess. As you can imagine, for most forex traders, it is pretty challenging to keep calm. Okay, so how could you manage your emotions?
Set Realistic Expectations
If you’ve watched several movies, and the idea of becoming a forex trader popped into your head, then sorry to break it to you, but the chances that you’ll become filthy rich are slim. Even people with years of experience make mistakes and lose fortunes – there’s no reason why this shouldn’t also happen to you.
It is easier said than done, but if you want to achieve even a moderate success, you must be the one who’s making the decisions. You’re not a robot, whether your predictions were correct or not will surely affect you, but all that matters is if you stay the course.
If you don’t want to resign after a month-long adventure with forex trading, you should find ways to deal with the stress. Even if you manage to avoid significant losses, the stress will be your close companion throughout your entire journey. One of the most effective ways to deal with stress is to exercise regularly.
Exercising helps you oxygenate your brain, making you more able to take decisive action. It also helps you feel more energized, and you won’t feel any crash, unlike after consuming terrifying amounts of caffeine. What’s most important, exercise, especially cardio, allows you to leave all the stress behind. Regaining a chemical balance in your brain will make it possible for you to deal with the emotions that would otherwise affect your decision-making process.
Sure, you might be thinking that if you just spent enough time analyzing the markets, your plan will become even better. Unfortunately, if you spend too much time doing the same thing, you might start slowly going insane. That’s why, from time to time, you need to meet with your friends. It will help you ensure that your mind stays sharp by clashing with different perspectives. Sure, you might have all the knowledge in the world, but everyone has biases. It means that by having conversations with other people, you might see the same issue from a different angle. And that might be just what you need.
There’s a reason why big companies encourage their employees to start meditating. No, it’s not about respecting other cultures; instead, it’s because it has a positive impact on productivity and mental well-being. It’s been proven that meditation reduces stress, enhances self-awareness, and improves your attention span. All of those effects will make your life as a forex trader much easier. And the best thing about meditation is that you can do it anywhere!
Predict the unpredictable
You must never forget that forex trading is all about probability. It means that even if you go with the most probable outcome, you might still lose money. Does it mean that you should change your strategy? Not necessarily. Knowing when you should adjust your plan, and when budging would be a mistake is of the toughest challenges of forex trading. If you want to keep your sanity, you need to learn to control your emotions.