Have you been checking prices regularly and constantly to the point of losing sleep? Do you check your portfolio every minute and every second of the day? These are just some of the symptoms of stress and anxiety when trading according to an article by Ryan Herron.
I myself had to go through these when I started trading. The driving factor was mainly due to two main reasons (1) the fear of losing your capital and (2) the the lack of confidence in trading.
Over the years I practice these 4 ways to avoid stress and anxiety:
1. Schedule and Market Selection
When I started trading, I used to just stare on my screen to watch candlesticks go up and down 24/7 (well almost). It took so much of my time that I neglected I still have life outside trading. The more I do this the more I get so anxious about my positions and the more stress I get especially when I can't see green candles.
Time Management is the key here but the key thing to consider is Market Selection.
When is the right time to trade?
For me personally, I found 3 Markets that I am interested in - US, Euro and the Asian Market. Now these markets have specific time slots (based on my observations), so I schedule my trading times accordingly. This now gives me a smarter way of time management, I can now schedule time for doing fundamentals while I'm not trading, do chores, do life etc.
The best thing is I know what time I have to check for my trade positions...certainly not every time!
2. Develop a Trading System and Self-Confidence
You fear what you don't know
As with all investments, there are risks in crypto-trading (even higher) and unless you are trading only for fun, you cannot afford to lose your capital. You may find yourself questioning about your trades: "Did I make a good call?" "Is it going to hit my target?" "What to buy now?" "When do I sell?"
Now, these questions aren't helping you at all and the more you ask them the more you lose self-confidence in trading and the more stressed out and the more anxious you become. So, how then can we go about it ?
Identify your strengths and weaknesses then build up your trading strategy. There are a lot out there but only choose one that you are most comfortable with and the one you are most knowledgeable. Start making the calls on your own and as much as possible avoid relying on other's trading calls (They could just be promoting a coin for all we know). I outline some of my strategies here but my main tool is the Bollinger Band and the trend lines for my Technical Analysis. I have also a few list (up to 3) sources of information to aide my fundamental analysis.
3. Eat Well and Stay Healthy
Your body is your greatest asset!
As cliche as it may be, it stands true if you want a successful trading career. A sharper mind makes sharp trade calls. Your overall health affects your state of mind. Therefore, this goes without saying that your success depends on how you take care of your body. Here are some recommended activities to keep yourself in a good shape:
- Exercise regularly
- Do sports
- Take good rests daily
- Get a massage
Don't make a decision when you are hungry
When you do a trade call, make sure you are in a sound state and not thinking about food! Saying this, make sure also that you choose the right foods you eat. I take a good bite on a dark chocolate every now and then - it's a food for your brain. You might want to consider these superfoods as well => https://draxe.com/15-brain-foods-to-boost-focus-and-memory/
4. Reward Yourself
You just made a good call on a tough day! why not give yourself a pat on the back? It doesn't have to be a grand reward or a black mustang or a fancy cruise trip (but hey why not ?) ... start from small rewards and tell yourself you are better and will even be better next time ..take the time off and enjoy!
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