Short term - knowledge library 1.0 (This thread is READ ONLY.... No unauthorised Posts), page-3

Trading Stress - And how to deal with it

Topic for discussion this week is Stock related STRESS ...

1. Types of Stress
2. Causes of Stress
3. How to deal with the Stress.
4. How not to deal with it.


Poster: Jeans_Sammy
Link: http://hotcopper.com.au/threads/stt-weekend-lounge-4-6th-sept-2015.2588796/#post-15939709

Causes of the stress:
1. Being lazy and not educating oneself for trading/investing or any other business oneself interested in.
Lack of knowledge will only bring stress.
Trying to swim on back of someone else - well most likely one will be drowned & will be put in great stress for a long long time.
2. Lack of sleep
3. Being very emotional : Not cutting the losses/taking profit of the table. HOPE is the biggest enemy for trader/investor.
4. Trading/investing without strategies/master plan and not preparing trading diary (with good/bad lesson learnt) , which could be proven as the BEST TRADING/INVESTING BOOK for oneself.
5. Not knowing how to balance life.
The most important skill one must be trained for : Yes Difficult but possible to manage once you know who you are, what's your purpose being employee, trader or investors. What's your necessity and what could be put as hobby or long term goal etc.
(I got 2 little kids, one on the way expecting next month, my wife becoming demanding taking the opportunity, working full time & one of the busiest time for my projects in past 8 years, though I still manage to trade, invest short-medium term and also trade/invest on behalf of my ex-boss ). Either I make or lose money by trading/investing, the only thing keeping me going is my skill to balance the life. Weekdays for the work and trading/investment whereas weekend for myself, family and friends. Never let them get mixed and never show your frustration on family/friends if you lose money otherwise, you will become a real looser in personal life. As a poster mentioned here, we only live one and make a most out of it. For that you do not necessarily need lot of money (except for basics needs).

Cure :
When you realize money is not the primary source of happiness

Poster: Oscar09
Link: http://hotcopper.com.au/posts/15939800/single

My theory is that exercise and activity is the secret ! For me, it's getting out and riding for a couple of hours,
or getting out to an oval and running the dog or having a kick of the footy or a surf in summer. It resets your whole body, in the same way that we
know that rebooting a computer refreshes the communication pathways. You must reboot every second or third day, and like the long distance runner found,
the hardest part is putting on your runners

Poster: Malaga
Link: http://hotcopper.com.au/posts/15938983/single

Free, stress is a good topic. I believe stress is one of the biggest contributors to sickness around.
Stress too much and the natural defences weaken. Weird bit is I know people with $1mil in bank and they worry so it is not just lack of money. Whatever, people need to develop their own way of dealing with stress. Worst thing is to keep it in or stress family members. I have always worked in dangerous occupations and thrill seeker sports. After nearly killing yourself on weekends losing money is nothing. I think too many traders become obsessed with the market and cannot switch off. Take a walk, spend some money, all the money in the world means nothing if your health is stuffed



Poster: Minoil
Link: http://hotcopper.com.au/posts/15938979/single

All those points are good, and worth remembering ....
funnily enough, losses dont stress me too much, usually because of your point(6)....i can justify a drop in SP due to me not getting the entry right, or its an opportunity to get more, as i am punting for an event that has yet to happen. I have learned recently, that when you cut a loser off, its over, forgotten.
My stress comes from stocks that are rising, usually quite quickly........being out of work, getting some income from a trade clouds my judgement....always have been hopeless with selling strategy...........Particularly stressful are the ones that run hard and become an accidental day trade.....i see some grocery money, so, i take it off the table, and, usually miss the big gains.
Day trading was stressful, so, i dont do it !....it happens by accident, and, when my stocks hit the DT thread,its my signal to get off......Stress also comes along on days like today, when not much happens....a screen full of orders, and they are "so close,yet so far"............Get outside and go for a mountain bike ride up a steep hill........sitting there trying to force a trade is no good



Poster: Gladiator2
Link: http://hotcopper.com.au/posts/15938978/single

Ah stress. I used to be a bit stressed head. Similar to SL I put a lot of stress on myself to succeed so I can support my family. Then realised the time I spent at home I was thinking about work, trading properties etc instead of living in the moment and enjoy the time with my wife and kids.

So I made a concious decision a few months back to forget about money and just appreciate life. To do this I will either watch a movie, read a book or something about a subject that puts life into perspective. Reading a book now about a man who lost his wife to cancer and had 3 girls to raise on his own. Anything that gets the tear ducts going

We only live once and I have never heard of a person on their death bed ever mentioning money


Poster: SectorLead
Link: http://hotcopper.com.au/posts/15938875/single
Stress, I have a continual level from being in business, but it's mostly pressure on myself to deliver and be successful.

I hardly drink a drop during the week, so Friday night I look forward to winding down with a drink.
No faster way to chillax for me...and get ready for the weekend with kids.

Last week, I had a good red, but the damn thing gave me a shocker brain freeze in morning. Something about the tannins in red, and they don't all do it.

I also brew with a few friends, and even made a coffee infused porter recently, which is nice in colder weather...as a starter.

Today, after that red, a clean NZ sov blanc....
so for me alcohol is best, but I rarely can drink more than a bottle.....gettin old.

I don't take any drugs or medication for stress. That would be pretty chronic.

I have always slept like a log, so lucky in that respect. 8 hrs every night...so agree good sleep habits and a good bed are helpful. As well as blackout blinds which we have.


Poster Valen1828
Link: http://hotcopper.com.au/posts/15938648/single

Stress . I over think a lot with the what ifs !

Causing me to stress a bit more . I do find listening to covers of music without vocals eases me to pull back and think better . Maybe its the tune in the background sounding different to the original sound with different instruments.

Got to love having a good humour thread on hotcopper also its one of my favourite visits .

I don't think I will be able ever get the feeling of watching a market sink to not cause me some angst that's for sure . I don't get angry anymore I just try sit back and think we have been through this before we know there be a bounce somewhere even if its short term .

This recent turmoil has me thinking about all the new market mechanisms that have been introduced . Trying to stay with the positive side and know that things will work out or if they don't there is something to learn.

There is no use striking out you have to remain calm share your thoughts and stay rational .
I do get side tracked easily and think its a natural mechanism to relieve pressure.
Even though we are stt you have think long term in a lot ways . Where you want be with skillsets . If your dreams can be reality !
Alcohol ? Yes I drink and don't think it causes me any harm with stress .


Poster: FullmoonFever

Link: http://hotcopper.com.au/posts/15939033/single

Driving Range for me....grab a big bucket of balls....clear the head of all stresses swimming around in it and commit focus to the swing, the ball contact, the corrections needed each time...mentally challenging but relaxing at the same time for me. Nice outdoors and provides a physical aspect as well hitting 70 - 100 balls with diff clubs....

As Jack Nicklaus once said - "Sometimes the biggest problem is in your head. You've got to believe you can play a shot instead of wondering where your next bad shot is coming from."

Kinda applies to stocks too for me....believe in your judgement.....believe in the trade....not think about if it will go bad....have another shot in the bag as a contingency



Poster: Kmac
Link: http://hotcopper.com.au/posts/15939603/single

Stress is such an individual thing, one man's stress is another man's motivation. If I don't feel a bit stressed prior to mkt open am not always ready for what could happen, and if I get a bit slack, I usually end up making bad decisions.

What does really stress me about trading is not so much my losses, but the reasons for those losses. Of course, we are all clever in hindsight, so will check to see if I erred because of my selection, or impulse trade or that market down or trade just not right at the time. (Owe that insight to Rande Howell who talks about losses being related to method, psychology or wrong side of probability). So I now don't beat myself up, but assess the error and move on. But the stress is, that I often repeat the same error - which is probably related to "overtrading". Won't bore with what that error is, but in order to deal with it I need a strategy for change and that's a personal endeavour. Can always improve my trading, even if I am older than 3500 and Martis.

Don't lose sleep over trading any more, just expect the worst (or anything) and be pleasantly surprised if that doesn't happen.


Poster: TraderGT
Link: http://hotcopper.com.au/posts/15940007/single

Well seems we are talking stress and sleep
If i go back 6-7 years ago my trading issues peaked.....
I was a pip trader on forex, commodities and indices
I will never go back.
Started off trading the ASX and aussie dollar and commodities during the day.
What started as finding more opportunities to make money which became an addiction......
Started with trading Europe markets and the euro in the evening so was still ok.
Then id wait till the DOW opened and trade that
Then id wait or wake up for the weekly OIL inventories report (at 2.30am!)
Pulling all nighters became a regular occurrence specially on a friday - never trade and drink! Lol.
Anyways it all became very stressful, tiring and effected my whole life
Just over 5 years ago i gave it away - best thing i ever did.
Trading specs on the ASX 10-4 - is comfortable for me

Main thing that gets me stressed sometimes is when i have too many trades going at once. I feel like im losing control watching them and that may lead to poor decisions......the use of stops helps avoid the stress of the big loss.

Anyways thats me and my story



Poster: Forrestfield
Link: http://hotcopper.com.au/posts/15940074/single

Stress.... you don't avoid it you are done.... how to avoid it is a multi dollar question though...
How do I manage it?
Diversification does help... however, following my strategy and trading rules is the biggest factor... for example, the recent market crash caused panicked however I sold few of holdings and bought the ones I like Better... or lets call them in a right sector... hence in my opinion following your own strategy does help along with portfolio management....
Other things are... spending time with family, having a mentor or a friend you can discuss your success and failure plus some exercise, some sleep and a lot of research... there are many other things but these are major factors...


Poster: DazedandConfused
Link: http://hotcopper.com.au/posts/15940163/single

I think there is a distinction to be made .... between pressure and stress.
Many years ago I was told by a friend that it is bus drivers who have the highest rate of heart attacks [don't know if that's still the case]. They have to keep to a timetable ... so all pressure and no sense of control .... equals stress.
In being in the market, I think it is similar .... it can be constant high pressure but it becomes stress if you lose the sense that you have some control.



Poster: OnefordaMoney
Link: http://hotcopper.com.au/posts/15943985/single

On Stress in trading.
Know why you are entering and exiting a trade, knowledge is power and power is control over your investments.
There is nothing wrong with clearing the decks and sitting out for a week.
Don't get emotionally attached to a stock or trade, this will cause you stress and lots of it.
Don't try to understand the market, it's is manipulated with unprecedented CB intervention.
Volatility is out of control, respect it.

Most of all if a losing trade or position is causing you stress do something about, understand why and let it go.

Always be well rested, no iPad or TV an hour before bed. Enjoy time with the family and always walk your dog daily.
A big deep breath and let it go. Sticking with quality stocks reduces my stress as if I get caught in a 30% swing against me I am still always happy to hold. A quality stock may be averaged down on if there is no real reason for a pull back, a sheet stock can't.