The Calm Before The Storm
Jack didn't sleep soundly, tossing and turning all night. He dreads facing the trading day ahead. He is half asleep, and cannot stop worrying about his positions. "What will the markets do today? How will traders react to the rate hikes? I can't lose any more money." Before Jack even woke up, he was at a disadvantage. He was already frustrated before making his first trade. When trading the markets, it's easy to feel overwhelmed by it all, but on the other hand, it's essential to trade with the proper calm, logical mindset. You cannot be on edge and ready to act impulsively. Instead, you must calmly and rationally evaluate your options and make a firm decision. How can you calm down? One possible way is to briefly enter a meditative state of mind, and take a break before having to face the storm of chaotic market events.
When you are frustrated, your thoughts are racing. Frustration usually has an important, adaptive function: it sets your body in motion to lash out physically when in physical danger. It is part of the fight-or-flee response. It may be useful to react to physical danger impulsively, but it is not helpful when trying to calmly and rationally trade the markets. When you feel anger, anxiety, or frustration, it is necessary to calm down. When you are agitated, you are likely to react impulsively in response to even a minor setback. Not getting a proper fill or a sudden selling spree might set you off. You may do something that you will regret later.
Calming your mind down before the trading day can help. Some people prefer exercise to release pent up energy, but others may prefer a form of meditation. There are many ways to meditate, but here is a way that may work for you. Find a quiet place to lie down. Next, concentrate on your breathing. As you breathe, think soothing thoughts. "Calm down. It will be all right today. I'll just try my best and accept what I can do." Allow yourself to be human. You don't need to be perfect and if you remind yourself of this fact, you will calm down. Some people prefer quiet music while trying to calm down. Others prefer complete silence. But the main goal is to concentrate on calming down, and to do whatever works best for you. Soon, your thoughts will start to become peaceful. For a moment, you will relax and your thoughts will slow down.
Don't be disappointed if your feelings of relaxation are only temporary. When you are extremely worried about the markets, you may find that your thoughts can be easily shifted from soothing thoughts to worries about the markets. This is natural. The point of the meditative exercise is not to completely eliminate worries and frustrations, but to find temporary relief from the stresses and strains that may consume you at the start of the trading day. By taking a break, you will feel rested. The brief rest will help you build up the emotional and mental energy you need to tackle upcoming challenges with grace. The markets can be frustrating to trade.
The markets go their own way and may not live up to your expectations. It can be frustrating, but rather than let it get to you, it's vital to take time out before the trading day to calm down, meditate, and relax.
When you are frustrated, your thoughts are racing. Frustration usually has an important, adaptive function: it sets your body in motion to lash out physically when in physical danger. It is part of the fight-or-flee response. It may be useful to react to physical danger impulsively, but it is not helpful when trying to calmly and rationally trade the markets. When you feel anger, anxiety, or frustration, it is necessary to calm down. When you are agitated, you are likely to react impulsively in response to even a minor setback. Not getting a proper fill or a sudden selling spree might set you off. You may do something that you will regret later.
Calming your mind down before the trading day can help. Some people prefer exercise to release pent up energy, but others may prefer a form of meditation. There are many ways to meditate, but here is a way that may work for you. Find a quiet place to lie down. Next, concentrate on your breathing. As you breathe, think soothing thoughts. "Calm down. It will be all right today. I'll just try my best and accept what I can do." Allow yourself to be human. You don't need to be perfect and if you remind yourself of this fact, you will calm down. Some people prefer quiet music while trying to calm down. Others prefer complete silence. But the main goal is to concentrate on calming down, and to do whatever works best for you. Soon, your thoughts will start to become peaceful. For a moment, you will relax and your thoughts will slow down.
Don't be disappointed if your feelings of relaxation are only temporary. When you are extremely worried about the markets, you may find that your thoughts can be easily shifted from soothing thoughts to worries about the markets. This is natural. The point of the meditative exercise is not to completely eliminate worries and frustrations, but to find temporary relief from the stresses and strains that may consume you at the start of the trading day. By taking a break, you will feel rested. The brief rest will help you build up the emotional and mental energy you need to tackle upcoming challenges with grace. The markets can be frustrating to trade.
The markets go their own way and may not live up to your expectations. It can be frustrating, but rather than let it get to you, it's vital to take time out before the trading day to calm down, meditate, and relax.
posted by nomadhunter at 6:02 PM
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