Learning sharks-Share Market Institute

 

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Putting up a good fight

A trade’s result is never certain. Chance is a constant in life. For example, while going long, all indicators can point to a strong and stable trend, but it’s always possible that an unexpected, unfavourable occurrence could ruin it all. You can never predict the future with certainty. However, it’s okay. Every time you make a trade, everything need not go according to plan. The big picture matters more than any particular trade’s result. The sum of your trading winnings is what matters in the end.

 

It relieves stress to consider the big picture. You can ask yourself, “What’s the big deal? It’s only one of several trades. You can calm down by using an excellent thinking technique called the larger perspective. Here’s one more: Fight as though you should prevail, but don’t pay attention to the result.

learning sharks stock market institute
Source: Money control

Stress relief comes from imagining the larger picture. What’s there to worry about? you can rationally ask. This is but one deal among many. You can utilise this excellent thinking technique to calm down by considering the wider picture. Another example is this: Despite fighting as though you should win, keep your attention off of the result.

 

Have you ever heard the saying “Winning is the only thing”? Although it may seem ironic, winning cannot be “the only thing.” The adage “It’s not whether you win or lose, but how you play the game” is more appropriate for success. You’ll have a better chance of success if you trade with resolve and discipline. The markets and trading must be respected. You are still unable to control the marketplace. The markets are capable of acting however they like. You must be prepared to accept the offers that the markets make to you. It’s crucial to take pleasure in the trading process. It’s difficult intellectually.

 

You can use your creative abilities to identify trading opportunities and feel a sense of accomplishment by solving difficult problems. Sometimes you’ll win, but many times you will lose. But each trading opportunity has a little something to teach you about yourself, the markets, and trading. It may be just a little thing, like how you can accept taking a loss after a fluke ruined a perfectly good trade. Or maybe you will merely learn something about your current limitations. There’s always something to learn. Whatever you do, though, don’t get caught up focusing entirely on winning. You can’t completely control whether you win or lose and when you think about winning, you just get distracted.

 

Enjoy the trading procedure. Strive hard and attempt to overcome any challenge. But don’t do it because you must win; do it because you love it. You’ll be able to manage your emotions if you can let go of the notion that winning is everything. You won’t feel inadequate or self-conscious when you face a setback. Instead, you will actively and proactively consider your options. What can you do as your next move to advance toward your objectives? Hard to accomplish.

 

In today’s world, we are motivated to succeed, but oddly, those that succeed in the long run aren’t driven by success. They are totally engrossed in the trading process, developing their talents, and finding peace in the knowledge that they have put in their best effort. Even simply knowing that they made a good attempt fills them with satisfaction.

The golden mean

Are You Trading for Real or Is That Just Wishful Thinking?

 

 

The Golden Mean is something you’ve probably encountered if you’ve spent any time around trading. On a price chart, it might have appeared as Fibonacci lines. The Fibonacci sequence, which consists of the numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, and so forth, is a series of numbers in which two successive numbers are added together to provide the third. Some traders define important support and resistance levels using ratios derived from the Fibonacci number series, frequently on the assumption that these estimates are more “natural” because they are based on the Fibonacci sequence.

 

Fibonacci asserted that seemingly random numbers had recurring patterns. Later Fibonacci adherents expanded his theory to stock and futures trading in an effort to identify patterns in seemingly random price movement. But are the seemingly random price changes “natural and clean” patterns, or is this merely wishful thinking?

Refer and Earn, learning sharks stock market institute
Source: Internet

The Golden Mean Ratio can be calculated by adding two random values. The outcome is then included in the total. One can find a defined pattern by dividing the former number by the latter after eight reverberations. This pattern is represented mathematically as 0.618 or its reciprocal, 1.618. The most beautiful pieces of art, music, and architecture are said to have this Golden Mean. It is frequently observed in nature in the composition of many of the most exquisite plants, creatures, and seashells. The Golden Mean was important to Greek philosophers and mathematicians because it showed how harmony exists in nature, the arts, and even the human body. It was the picture of equilibrium—the ideal form…the most beautiful sight.

 

It’s surprising how many consistent patterns there are in the natural world, but social scientists have long recognised that there are very few, if any, consistent patterns in human behaviour. What exactly is trading? It reflects human nature. It was invented by people and is not a natural phenomena. It’s not flawless. It’s not spotless. It is unstable and in turmoil. A good trader must embrace the ambiguity of human nature and take on the challenging task of uncovering consistency where there isn’t much of it.

 

 

However, a lot of traders find concepts like the Fibonacci number sequence to be fascinating, almost mystical. However, not every trader finds the Fibonacci number sequence to be beautiful. In fact, the editor of a well-known trading publication pointed out that the pattern may not even be magical. It can appear to operate by pure coincidence (the market is likely to correct somewhere between one-third and two-thirds of the previous trend, which is similar to the commonly used Fibonacci ratios of .382 and .618.) Your position on these subjects could say a lot about your trading style.

 

The superstitious elements of trading appeal to a lot of traders. They begin looking for techniques based on “rules of nature” to give them a strong but erroneous sense of security since they lack confidence in themselves. In an effort to find certainty and the security it offers, they look for universal and general rules. This is what ideas like the Fibonacci number sequence do. They present potential. One has the luxury of believing in the more powerful, almighty rules of nature rather than in oneself. It’s comparable to accepting fate, luck, or destiny.

 

One may opt to live a passive existence, putting one’s faith in other forces, and waiting for the proverbial “stars to align” in one’s favour. The most prosperous people in society, however, don’t have time to wait for luck or fate. And it would be advisable to give up any superstitions if you want to become or remain a successful trader. To succeed, you must improve your trade abilities. Build them up to the point where you are impatiently anticipating your alleged “luck” to turn against you in order to show them how resilient you really are.

 

You’ll find that you can embrace the risk associated in trading the market and rely only on yourself, your abilities, and nothing else when you have strong trading skills and the rock-solid confidence they will provide you.

Go for it

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

When your money is at stake, you are forced to take precautions. Avoid recklessly gambling with your money so that you end yourself in debt and have to work twice as hard to break even. However, you don’t want to become stationary. Carefree trading is a trait of successful traders. They don’t aim for an impossible standard of perfection. They act, deal with issues as they arise, and most importantly, they engage in transactions.

learning sharks stock market institute
source: Businessstandard

Pursuing perfectionism is rewarded in many professions. Studies of ambitious, successful individuals, for instance, have shown that they are persistent in working on a task until their comparatively high standards are reached, but they do not go overboard to the point of procrastination. When someone reaches a predetermined standard, they finish the task and move on. But many people are reluctant to risk failure and potential embarrassment because they don’t want to lose face.

 

Mark Douglas writes in his book “Trading in the zone” that inexperienced traders look for excuses not to place transactions. They might persuade themselves, for instance, that they need to learn new trade techniques. These justifications, however, are frequently evasions of accountability for carrying out a deal. Instead of making a trade and dealing with their limits, they would prefer to consider their options. However, traders must act immediately. Never attempt to overcome a challenge by backing down. Despite this, it’s only normal to want to double-check everything before making a trade. How many times have you ignored a potential negative event and then paid the price?

 

You’ve learnt the value of great caution the hard way. But in the end, you also realise that you need to act. You must take ownership of your actions and create a deal.

How can the pressure of taking chances be lessened? The first obvious option is to use risk management to reduce possible losses. You’ll really feel like you have little to lose if you keep the amount of risk to a modest portion of your account. Second, don’t give a trade more emotional weight than it deserves. It’s just your work; it’s not your baby. You’ll feel more at ease and be able to complete the trade more easily if you approach it objectively and professionally.

 

Third, you must be prepared to acknowledge the psychological reality that trading results are unpredictable.

 

 

Until you actually make a trade and see how it plays out, you can never tell for sure how it will end out.

 

While it may be challenging in the moment, facing the consequences is an important part of learning. Finding out just how difficult trading can be may be painful, but you’ll discover that in the long run, if you take personal risks, minimise the actual financial repercussions, and learn from your mistakes, you’ll become an expert in the markets. And the psychological suffering you had to go through in order to learn was well worth it. So don’t be reluctant to get in.

Goal Setting Enhances Motivation

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

We typically determine our level of motivation by the goals we establish. Robert Koppel (2000) makes the following claim in his book, “The Mentally Tough Online Trader”: “Setting goals is vital for the trader to boost motivation and optimise performance. Goals should be realisable within a set time frame, practical, measurable, and under the person’s control. High-level goals are a sign of success, but if you set your sights too high, you’ll probably fail a lot of the time. Additionally, persistent failure can make you want to give up by harming your ego. Finding the sweet spot between being overly ambitious and being too modest when making objectives is the key.

 

It’s crucial for your emotional health to have reasonable expectations while making goals. For instance, many new traders fail when they attempt to transform a little investment into a large sum of money. Trading with insufficient funds won’t be able to pay for drawdowns, fees, or commissions. Also trading above their ability level are new traders. They could employ risky trading techniques and anticipate a reward even when changing market circumstances render their strategies ineffective. It’s challenging to accomplish irrational aims. It causes a lot of tension, and stress can lead to mistakes in trading. Setting more reasonable expectations reduces pressure and aids in the development of solid trading techniques. You experience a sense of satisfaction as you accomplish each goal.

learning sharks stock market institute
source: Free press journal

A common misconception among new traders is how long it takes to build a profitable business. For instance, many believe they can trade profitably in a matter of months, when experienced traders stress that such consistently lucrative trading may take several years. And achieving it is difficult. Yet many inexperienced traders believe that only a modest amount of work is required. For instance, individuals could believe that treating trading more like a pastime than a professional business will allow them to trade profitably. They overestimate how competent they are. They have an overly confident belief in their own abilities and skills, which they do not yet possess. Never underestimate a person’s propensity for arrogance.

 

It’s crucial to create explicit goals in addition to attainable ones. A common error is to set ill-defined, non-specific goals. Setting concrete objectives and rewarding yourself as you advance is beneficial. Profits do not have to be the primary focus of goals. You might wish to start by establishing objectives for skill improvement. You can choose to read one new trading book a week or spend three hours a day studying charts. Naturally, you’ll experience a sense of accomplishment as you accomplish each goal and mark your progress.

 

You can gradually set higher and higher goals as your skills advance. Though initially slow, you will eventually make great progress. Avoiding attempting to do too much is crucial. Move slowly. Work on your own schedule, and at your own pace. Not to be a competition. You are the only one you need to appease. You’ll master the markets and achieve long-term financial success if you create goals that are reasonable and work diligently to meet them.

Setting Goals for the New Year

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

learning sharks stock market institute
Source: Dreamstime

It’s time to establish ambitious new objectives and create plans for the future now that the new year has arrived. Having goals might inspire you. The goals seem instantly attainable when we consider where we want to go in our lives and when we create precise targets. We begin to consider other options. The more we consider various options, the more plans we develop, and the more plausible the possibilities seem. We have a sudden surge of energy and feel like taking on the world. But it’s crucial to avoid overreacting. You must carefully define goals, whether they be for your personal life or new trading objectives.

 

The January Effect: What Is It?


The January Effect refers to a supposedly seasonal rise in stock values that occurs in January. Analysts frequently attribute this bounce to an uptick in buying after the price decline that typically occurs in December as a result of investors selling to realise tax losses to balance realised capital gains.

 

It’s easy to be overly optimistic at the beginning of the year. Why not aim for the moon? Even though having high expectations is essential for achieving ambitious goals, “reaching for the stars” typically results in unreasonable aims, which ultimately lead to failure. For instance, most New Year’s resolutions are broken by around 90% of people. The majority of these failures happen as a result of people’s overly optimistic goal-setting. They began to believe that, if one “dares to dream,” “everything is possible.” Even while the “everything is possible” mentality is motivating, it rarely comes to pass. You can’t just think yourself successful. Hard labour and preparation are required. And no amount of wishful thinking will enable one to accomplish the impossibility.

 

When setting a New Year’s resolution, the majority of individuals set improbable objectives. They have inflated expectations of their ability to shed weight. They frequently have a desire to fulfil personal tasks that are impossible given the resources at their disposal. And many inexperienced traders have unrealistic expectations for their financial success when it comes to trading.

 

Making your goals explicit while keeping them realistic is a good idea. Setting both types of goals and separating them from performance goals is beneficial. For instance, a new trader lacks the knowledge and resources necessary to engage in profitable trading over the long term. For instance, it can be challenging to set a target of producing a 40% profit in six months if you lack the necessary expertise. That is an illustration of a “performance target” that is too ambitious. Performance goals that are too ambitious frequently result in failure and utter disappointment.

 

When expectations are dashed, people tend to want to give up. Beginner traders should establish high learning goals rather than high performance goals. It is simpler to accomplish a learning objective, such as dedicating 20 hours per week to learning new methods and making 10 practise trades (profitable or not). One will probably succeed and accomplish their aim. One will feel accomplished, as if they have overcome the odds and prevailed, as opposed to feeling disappointed. One will feel inspired and prepared to continue on to accomplish even loftier objectives.

 

A terrific opportunity to make fresh, interesting resolutions is at the beginning of the new year. But take care. Decide on attainable objectives that you can reach. Many people have unrealistic expectations for the New Year, which leads to failure and utter despair. But if you make realistic goals, you’ll be more likely to succeed, feel energised, and reach your full potential.

Clear and Specific Goals

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Trading can occasionally be tedious. You have to continuously search for market chances, and once you do, you have to risk your money and a little bit of your ego, and you have to live with the results—good or bad. You’ll soon join the dejected minions who have left the trading profession if your heart isn’t in it. You must enjoy the trading process if you want to succeed as a trader over the long term. If that were the only method to trade, you must believe it’s so thrilling that you would do it for minimal wage. The prize is not the focus. It’s a calling and an honourable goal.

 

Who wouldn’t want to trade successfully? You could do anything you wanted if you had total financial independence. However, it’s important to translate the vague objective of being a successful trader into a precise, detailed strategy. Your trading goals should be exact, definite, and well-defined, according to Robert Koppel and Howard Abell, who make this argument in their book “The Inner Game of Trading.” You must also make an effort to finish your tasks in a reasonable amount of time. Your goals should be attainable and stated in a way that empowers you. Setting an objective that is simple to quantify is also crucial.

learning sharks stock market institute

Koppel and Abell claim that there are various ways to specify trade goals. First, you might establish performance goals that are centred on how well you are performing in comparison to your own standards. You aim to improve your physical and mental trade skills when working toward a performance goal. Second, you can specify outcome objectives. Outcome goals aid in identifying your priorities. You can use them to create trading methods and strategies that suit your personality. Third, setting a motivational goal encourages you to put more effort into developing your trading abilities. You can keep up a high level of enthusiasm and confidence by setting motivational goals.

 

For instance, it’s crucial to develop emotional self-control. Many traders make emotional decisions instead of logical ones. They also struggle with accepting defeat. It’s important to get past setbacks without fuss rather than let them bother you. It’s crucial to create a trading strategy that complements your personality. All traders ought to keep their risk under control. These are but a few examples, but with each of them, it’s imperative to work diligently toward achieving specified objectives each day. You might simply try to set a performance objective on some days. You could put a trading technique you’re seeking to perfect into practise using a bar you personally deem suitable. On other days, you can aim to accomplish a certain goal and gauge your success.

 

Many traders commit the error of trading aimlessly every day without attempting to accomplish any particular objectives. It’s like trying to saw down a tree without ensuring sure your blade is sharp enough to cut wood, as Koppel and Abell put it. Goals orient and inspire. You are embarking on a journey without a map if your aims aren’t clear and explicit.

Modest and Realistic Goals

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Rohan feels let down by his life. He sees his existence as a consolation prize, a series of compromises that ultimately fall short of what he wants. He longs to be wealthier. He has a fantasy that all of his problems might be resolved if he can make significant trading profits. I’ll get the admiration and acceptance I’ve always desired. Maybe I’ll meet an interesting, brand-new person who will fulfil all my demands for love and contentment. If only I could generate enough revenue to cover all of my expenses.

 

Ever had a rohan-like feeling? Have you ever fantasised about experiencing a string of enormous successes and having all your issues resolved? Even if it’s fun to periodically imagine that you’ll make a few million dollars trading the markets, it’s doubtful that this will actually happen. Without enough investment capital and in the majority of market conditions, it is difficult to make that type of money. That way of thinking will ultimately make you discouraged. It is imperative that you recognise these poor ideas and create more reasonable and achievable objectives.

learning sharks stock market institute
source: Medium

In setting goals, it’s important to have realistic expectations. Trying to make huge profits quickly is unrealistic; modest goals are more realistic, and thus, more satisfying. Yet most novice traders reject modest, achievable goals for ones they can’t possibly achieve. Since their expectations are often unrealistic, they fail quickly, feel disappointed, and just give up. Examples of unrealistic goals are trading with an insufficiently funded account that can’t possibly cover drawdowns or fees and commissions. They may also trade with unreliable trading strategies and expect to make a profit even as new market conditions make their methods obsolete. It’s not only impossible to achieve unrealistic goals, it creates a great deal of stress, which itself can produce trading errors. Setting more realistic expectations eases some of the pressure and helps you build up sound trading skills.

A common misconception among new traders is how long it takes to build a profitable business. For instance, many believe they can trade profitably in a matter of months, when experienced traders stress that such consistently lucrative trading may take several years. And achieving it is difficult. Although it takes a herculean effort, many inexperienced traders believe it only requires a little. For instance, individuals could believe that treating trading more like a pastime than a professional business will allow them to trade profitably. They overestimate how competent they are. They have an overly confident belief in their own abilities and skills, which they do not yet possess. Never underestimate a person’s propensity for arrogance.

 

Finally, it’s crucial to keep your expectations realistic. Novice traders, like Stan, who hopes to find happiness through trading, believe they will make more money than they can reasonably expect, or that when they make significant gains, all of their issues will be resolved. They could think that their partners will adore them more (or they will find the ideal romantic partner). They are confident that they will receive the respect and acclaim they have been seeking their entire lives. But these hopes hardly ever come true. And even when they do, one’s expectations aren’t met. Trying to motivate oneself by daydreaming about these prospective benefits is probably going to fail in the end. By setting attainable goals, you’ll be the only one who succeeds in being profitable.

Waiting for the Payoff

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Are you prepared to put in a full day’s work and receive zero compensation? Most people who are used to working a 9-to-5 job would respond, “No way, are you kidding?,” if you asked them. But if you are a genuine, active trader, you must recognise that there will be many days when you won’t make any money.

 

You could choose to work for no immediate reward for a number of different reasons. For instance, market conditions might not be ideal, and if you try to trade in such circumstances, you might potentially lose money. On another day, you might be too worn out, anxious all the time, or plain miserable. You could make trading mistakes that have long-lasting effects if you trade with a mindset that is less than ideal. Sometimes all you need to do is observe the markets to ascertain what is happening and the state they are in. To keep ahead of the pack, you might also want to read up on new trading strategies at other times.

learning sharks stock market institute
Source: Indianmarketview

Other times, instead of focusing on making money right now, you need to pay close attention to learning new techniques and developing new talents. Many people perceive their typical blue- or white-collar occupations considerably differently than seasoned, aggressive traders do. Being able to intuitively sense the markets and recognise when to push themselves and when to back off and wait for better times is a necessary talent for this creative career.

 

Many people find it difficult to tolerate spending time that doesn’t immediately result in an immediate benefit. The majority of people are accustomed to receiving hourly, weekly, or monthly pay. But you have to approach things differently when you’re in the trading business. You cannot concentrate on earning a consistent income. Think about what would happen if you rigidly believed you needed to earn Rs 2000 per day in profit. It’s possible that you would work for a good eight hours most days without making a profit.

 

You might start to question how you’d accomplish your goals in the final 30 minutes of the session if you operate under the idea that achieving the RS 2000 target is very essential for every single day. As a result, you might feel pressured to finish the session on time, no matter what. You can take low probability setups or trade erratically when under duress. You might incur significant losses as a result, which you would have to make up the next day. You can experience a loss of Rs 2000 rather than a gain of Rs 2000. That day, it would have been best for you to stay out of it.

 

You must use your imagination and free thought when working in the trading industry. While researching the markets after-hours, you can push yourself to the maximum, but during trading hours, you need to maintain composure and be receptive to your gut instinct. You must adapt to the state of the market while using your skills to make money. Those gains can be very large at times. You won’t produce anything else at other times. But everything is OK. What happens on any individual day is not important; what counts is your overall profitability. Don’t be irritated or dissatisfied if you have days when things don’t seem to be going your way.

 

 

They Say it Couldn’t be Done

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

For six months, Jim has been trading. He had Rs 5,000 to start, but now he just has Rs 1,500. He’s beginning to worry, now. He’s angry and frustrated. I believe it is difficult to trade and make a life, he says to his friend Jason. I’ve put in six months of labour, but I’ve lost money. I haven’t earned anything. I don’t think it’s possible to trade profitably.

 

Any of this familiar to you? Jim is suffering from a condition that many beginning traders experience. He had high expectations for quick success, but trading has more drawbacks than he anticipated and cannot handle. He’s frustrated because success has eluded him. Profitable trading is challenging, in fact. The general consensus among professionals is that less than 20% of people who attempt trading will have long-term success.

learning sharks stock market institute
Source: Investor's business daily

You need to be upbeat if you want to be a good trader. You must firmly believe that if you work hard enough, success will eventually come to you. That does not imply that you should adopt a pessimistic outlook. That doesn’t mean you should try to downplay how challenging and demanding trading is or that you should be frightened to tackle such issues. Instead, you must be willing to accept and meet the obstacles. You must recognise them and take decisive action to address them. It’s challenging to accomplish this.

 

The more your financial resources, the more likely it is that you can find long-term success. In order to learn how to trade and obtain the experience you need to perfect your trading skills, you must also put in a lot of time in the beginning. You won’t be able to accomplish your objectives by pretending that you don’t need to fulfil these requirements. You won’t be able to give up easy. You must possess the ability to persevere in the face of unfathomable challenges. And you must not give a damn what people think. You must respond, “Maybe it can’t be done, but I’m going to do anything I can to see whether I’m one of the few who can,” if they claim it’s impossible.

Don’t Forget to Take a Break

Psychology and Risk Management

What to expect
Risks
• Position sizing
• illusion of control
• Accepting critisism
• Paralyzed by fear
• Loss is a feedback, not a failure
• The flexible trader
• Focusing on the positive
• Short straddle
• The dynamics of greed
• The herd mentality
• Notes

Reality is arbitrary. In the same way that there are various mental or emotional states, there are several states of reality. For instance, the outlook for the future can be dim after a string of failures. On the other hand, you might feel joyful and even omnipotent following a string of significant victories. Which then is the real reality? Answering this question is challenging. It can be useful to think about different realities, some of which are more suited to optimal trading than others.

 

Making money is a necessary reality. Your account will lose all of its value if you don’t make enough profitable trades. Even though this is a truth of trading, pressuring yourself to make a transaction after a winning deal can really cause you to pass out from stress. It is advisable to forget about this truth while trading the markets. The more you can avoid concentrating on your past performance and keep your attention on your present experience, the better. The better you trade, the more carefree you get.

learning sharks stock market institute
Source: Wall street journal

But you must mentally distance yourself from everything if you want to switch to a peak performance attitude. You must allow your thoughts to unwind. Slowing down your thinking is necessary. You must occasionally step away from the trading industry’s competitive environment. Everyone has their own strategy. Some people meditate. Others exercise in the gym until they have exhausted all of their pent-up energy and are completely relaxed. Additionally, a lot of folks get massages to unwind physically. The secret is to force your mind to switch to a different world by shaking it.

 

Here’s a technique that can really jolt your head in the right way. You can spend two minutes submerging your body in warm water (hot but not boiling, ideally at a professionally run spa), after which you can plunge into a pool of cold water. All your thoughts are focused on adjusting to the heat when you submerge your body in a hot pool of water. It hurts a little, so you have to keep your focus to keep from springing out. It helps you concentrate on it. Actually, all you can think about is how you’re going to deal with the immense heat around your body. You soon start to feel meditative.

 

You’re at ease and a little disoriented. Repeat the procedure several times to achieve complete relaxation. You’ll be in a brand-new world. Adapting to this new reality can be a revitalising experience psychologically.

 

You’ll view things objectively. You’ll realise that your trading endeavours and the high standards you strive for are just one part of who you are. Having this insight might be comforting after a hard trading day. You’ll keep in mind that despite the pandemonium, there are alternative realities. But more significantly, you’ll feel at ease and reenergized to take on the strains and tensions of the markets.

 

Inherently stressful is trading. Even if we attempt to prevent it, when it comes to money, our ego is frequently on the line. It’s vital to mentally disconnect from everything. Whether it’s through meditation, physical activity, or a trip to a tropical island, it’s important to change your reality, get some rest, and recharge.