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Crucial Tips To Control and Manage Stress Effectively While Trading

12/28/2021

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​Trading is one of the most rewarding jobs in the world. It offers the freedom and flexibility that you can never expect in your typical day job. But as they always say - "with great power comes great responsibility." If not anything else, trading is a constant fight between you and the financial market you trade. As a job that requires your complete attention, it can get monotonous and pretty stressful.   
You will come across situations where you spend hours developing a trading strategy, back-test it in a demo account, and finally, applying it to the live markets only to see a disastrous failure. What would you do in that situation? Do you go back to the drawing board to see where you went wrong? Or turn off the system to take a walk? Both are great options except for the third one: feeling demotivated, stressed, or going on a revenge trade. 
It is important to stay super attentive when you trade. Feeling the stress is that one thing that takes the focus off your mind. Therefore, you must know that not trading is better than trading the markets with a stressful mind. Stress is inevitable in trading, and humans aren't sophisticated machines to stay focussed all the time. 
We recommend you follow the below practices to effectively avoid stress when you trade the global financial markets.
Have No Expectations: You should have absolutely zero expectations from the trades you place. This might sound dramatic, but it is true - expectation is the primary source of disappointment. It is important that you work on your strategy and do everything right to end the day with profits but do not expect that. If you do so, and the outcome is different, you will be stressed and dejected. 
Take Calculated Risks: One of the most common mistakes we make while trading is "wishful thinking." Do not risk your account and be certain about hitting the "take-profit" in a world of uncertainty. You won't be stressed even when the outcome is not in your favor when you take calculated risks. 
Prepare: Imagine attending a must-crack interview in a Fortune 500 company, but you hardly have any relative experience. Would you be stressed or relaxed? Obviously the former right? The same applies to trading as well. When you know what to do in a certain situation, you won't be stressed when you are prepared on how to react to it. Always stay prepared!
Accept The Reality: Trading is not about winning vs. losing. It is about winning more and losing less. So when you fail, instead of feeling discouraged and stressed, accept the reality. See what you can learn from that mistake and make sure you won’t repeat them ever again. 
Avoid Self Sabotage: As humans, we tend to find the easiest and more temporary ways to feel relaxed. Consuming caffeine, smoking, and drinking are a few toxic things traders prefer to avoid stress. Although you find instant relief doing these, ironically, they increase your stress levels in the long term. You know the harmful effects these habits will have on your health. Hence, I suggest you practice healthier alternatives to avoid stress. Meditation, regular exercise, and spending quality time with family and friends can do wonders for your mental health. All the best!
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Why Should You Master This Skill To Sustain and Succeed In Trading

12/14/2021

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There is no denying that your emotions play a crucial role in your success while trading in the global markets. But many novice traders understand this concept in an entirely different way. They believe that making trading decisions by being absolutely emotionless will help improve their decision-making process. They can’t be more wrong. 
Profitable traders are not emotionless. They are emotionally tough and stable. That is one crucial aspect that differentiates amateurs and professional traders. Many renounced psychologists believe that “emotion” is a crucial factor in increasing performance. When you take out the emotion from the picture, sustainability in anything becomes impossible. 
Therefore, you need to go through and experience a range of emotions to become emotionally tough eventually. Unless you do that, achieving a supreme level of performance becomes impossible. Having that said, negative emotions like self-doubt, fear, and anger can sabotage your trading. Failing to manage these will restrict you from doing what you are really capable of. 
This is when you must be emotionally flexible. It is the ability of a person to be open and true to themselves. Typically what people do in a time of crisis is to escape from reality and be defensive. For instance, if your trade fails and you lose about $1000, what would you do? Do you avoid the problem by blaming it on the market, strategy, your mentor, etc.? or do you get into the root cause analysis on why the trade failed by taking the blame on you? 
If you are the latter, you will eventually be a winner. It is important to go through emotions like fear. But it is more important to overcome those emotions by replacing them with positive emotions like curiosity, enthusiasm, and humor. Eventually, the winners are the ones who have a creative approach to solving a problem rather than being stuck in any of the negative emotions. Getting past those emotions is only possible when you are open to experiencing and inculcating a wide range of positive emotions. This is exactly what I call emotional toughness and flexibility. 
Finally, make sure to stay connected with your positive/negative experiences, try always to remain positive, and quickly bounce back from any bad experience. This will enhance your trading performance and help you lead a happy, guilt-free life. 

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Does Your Personality Influence Your Trading Success?

12/3/2021

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What distinguishes a profitable trader from an amateur? 
In addition to the tools of the trade, mental skills and personality play a crucial role in trading success in the financial markets. 
Successful traders have impeccable mental strength compared to other traders. A significant part of your mental strength is based on what kind of personality you possess. If you are aware of your personality and work on it, it will have a positive impact on your trading performance. 
With people, there are many shades of gray. No person is completely good or bad or completely positive or negative. It is your responsibility to identify your personality traits and how those traits affect your daily trading decisions. 
Let's talk about two personality traits that are very important for trading: being intuitive and being analytical. 
Traders with intuitive personalities make their trading decisions based on their intuition. This may be because they are naturally intuitive, or because they develop this intuition over time. 
A trader with an "analytical" personality is just the opposite. He pays attention to historical data and solid evidence to support his trading decisions.
The balance between these two personalities is what makes a near-perfect trader. 
If you're intuitive only because you're too lazy to do accurate analysis, you'll fail. On the other hand, if you are extremely data-oriented and wait for the perfect trading setup, you will never be able to trade, because perfection is an illusion in trading. 
If you balance these two personalities by doing the necessary analysis and then placing your trades based on your intuition, you may suddenly get great results.
Although most personality traits are formed from birth, it is not impossible to acquire new ones. 
Try to find out what personality traits great traders have (The Market Wizards books). Try to practice building these traits in yourself so that you can eventually become a holistic trader. 
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    He traded for a hedge fund and then went on his own. He specializes in scalping and fast day trading. His scalping book "Scalping Is Fun!" is an international bestseller and has been sold more than 30.000 times. His books have been translated into 11 languages.

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