Handling the Stresses of Trading

The Model of (Bad) Stress is Five-fold:
Stressor: The real situation
Perception/Thoughts: Your initial reaction as you perceive the situation
Feelings/Emotions: Your psychological response to your perception
Physiological Reactions: Your body’s response to your emotional state
Health Consequences: Energy consumption

1. Stressors are manifold in trading:
You just got whacked
You’re distracted by other traders who have lost it.
Your significant other is less than supportive.
You’re trading with scared money.
2. Your Perceptions
“I can’t afford to lose any more money!”
“My wife is going to kill me!”
“It’s over for my trading career!”
3. Your Emotional Response
Frustration
Rage
Anger
Fear
4. How your body responds to the EmotionIncreased perspiration
Increased heart rate
Increased blood pressure
Increased muscle tension
Bracing – Jaw clenching, shoulder tightening
5. Your Health
Heart Attack
Stroke
Asthma Attacks
You name it – Headaches, Loss of Appetite, etc.