Managing Trader Stress

By | March 20, 2013 2:53 pm

One of the top three things that will determine the success of a trader is the trader’s psychology, the weakest part of any trading plan is the trader and stress can knock a trader out of trading faster than anything else. You have to trade like it is a business. Realize that it is highly probable that half of your trades will be losers the money will be made by the half that are winners being bigger than the half that are losers.

You can not control the market you can only control what you do, your entries, exits, position sizing, and method. Practicing discipline and self control at all times keeps you out of very stressful situations. The key to trading success is not fun and excitement, it is about making what you do as sterile and boring as possible and steadily make money with good trades that have the odds in your favor. This is a business not an amusement park ride, trade accordingly.


  • Only trade a position size you are comfortable with. — If you are having a winning streak do not increase your trade size seeing your winners, just stick with normal trade size. In case losing trade never ever think of averaging your looses, its a Big Blunder traders commit.
  • Trade on your trading system not on your intuition.
  • Have a trading plan before you get into the trade Always take a trade if you have a trading plan, Never be impulsive that is first take the trade and make a plan. If you have no plan no trade should be taken.
  • Believe in your ability to follow your trading plan.
  • Know yourself as a trader and only take your kind of trades. — Knowing ones psychology  is the most important part of trading, You should know how you react to winners and how you take looser. Preparing yourself for such scenario will keep you at peace.
  • Do not listen to any unsolicited advice, Blue channels about the trade you are in follow your own plan.
  • Sit out markets that you are uncomfortable trading due to volatility or other looming risks.
  • Keep your ego out of your trading run it like a business.
  • Only trade when the odds are believed to be in your favor.– Always remember if trade is not giving a good Risk Reward ratio just aviod it, Protection of capital is the most important job of trader.
  • Do not blame yourself for losses if you followed all your rules.
  • Focus on what you are doing and realize you can’t control what the market does.
  • Don’t do anything stupid in your trading. Practice discipline and self control at all times.



4 thoughts on “Managing Trader Stress

  1. Dinesh

    Dear Sir,

    Very Useful advice for traders. It is the real secret of successful traders.

    Thanks a lot.


    Dinesh Kumar


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