you're reading...

Markets are really stressful?

I have recently seen many people talking about stress in markets and how it sometimes shapes our life. I don’t agree. Lets start by focusing not in the meaning of stress but when it occurs. I know little or nothing about psychology. From what I have read, stress, in its simple form, occurs when we expect something and the external environment doesn’t match our expectation. It is a self-defence mechanism that our brain has to deny information that goes against our expectations. It only happens when we have expectations on the market. And if we didn’t have any expectations? Or if we traded amounts that we don’t mind losing? For me this is where the problem lies. Major traders deal with money that they are not willing to lose, and therefore trade with fear. This is what causes stress. When we trade without fear to lose based in statistics, we know in advance that patterns occurs %. It becomes acceptable to lose 3 or 4 times in a row. We have the edge in our side and, in long term, we will survive and profit. Of course this is not  always so simple, but this is how traders should think.

Other point that it comes to my mind is that the fact that sometimes we must rely on ourselves and other time we must change our opinion and recognise a mistake. The difficult thing seems to be knowing when to change our opinion! In my case, as I have changed my perspective about trading and started to trust more in myself, I became more profitable. There is no unique solution for everyone. Maybe to other person it is more important to listen the market and be flexible. I believe that there is a different solution to each person. The most important thing is to know ourselves.

Frederico Menezes



No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: