Psychological Stress is a Response to Threat

By | August 18, 2011

Psychological stress occurs in response to threats. Any two market participants interpret the events differently as they are performing with different mindsets which have different levels of stress.

Recently a research was conducted on 60 effective traders and their trading styles and were observed. Each one had different approach towards trading. The researchers have measured their stress levels in trading process. The person who was less effected by stress was found to be performing well and the person more effected by stress more was performing worse.

The successful traders were doing their trades by diverting their risks. They never depended fully on one option, they were choosing various options for reducing the trade risk. Successive traders analyze the trade market regularly, most of the traders used this analysis to guide their decision making.

The traders accept the losses, they feel these are part of the business. Traders have their own strategies for trading the day if market performs bad. The successful traders follow their own plans and strategies. The successful traders always control their emotion in trading process.

Finally, it is to be accepted that the person who controls the emotions and stress in trading process has good feedback in the market.