Six Ways To Deal With Stock Market Stress

Six Ways To Deal With Stock Market Stress

Everyone knows that no good ever comes of stress. As an investor, it is crucial to keep your balance while you trade since youíre in the grind all week long (the working week that is), and you must be on top of your game. So how do you deal with stress?

 

stress picture

The important thing is to remain cool and disciplined with your stock trading. Stock market worry can be due to your over involvement in your everyday routine or the dynamic changes in the market, rather than keeping the bigger picture in mind.

Here are six tried and tested ways to deal with stock market stress:

  • Utilize stop loss orders: These are a bit like insurance, basically, they are stock orders headachewhich will sell your position automatically once a preset price is hit at any instant of the trading day. They get rid of the ìshould I sell or should I hold?î dilemma of investment, replacing it with a focused strategy. You can also have a strong profit vs. loss ratio by
  • using them.
  • Donít keep glancing at your streamer every few seconds: The every changing outlook of the market can lead to some temporary stress. Many stock traders have their real time streamers relaying live quotes from various stocks throughout the day – if youíre one of them, and feel that you arenít in the right mental place, it is better to shut off the streamer for some hours (or even the whole day) and turn it on again later.
  • Get away from all the hassle: When nothing else seems to work, and you feel that you simply cannot regain your composure to get back into the stock market game, it is time to take a break. This is your mind telling you to ditch all the stress for a change of scenery where you can recharge yourself physically and spiritually, so you return ready for action!
  • Refresh your portfolio balance just once daily: Are your stocks suffering from rapid decline? Rather than refreshing your portfolio every few seconds to witness fresh losses, hold until the market closes to view your portfolio balance. Your stop loss orders will keep your losses to a minimum anyways so you donít have to take the added stress of looking at them constantly.
  • Plan an investment strategy: If you donít have a sound investment strategy, it is as if you are running blind! Always trade according to a defined plan. Each buy and sell should be calculated and pre-determined rather than on the fly – this will go a long way towards eliminating your stress. In fact, a well thought out strategy for investment can make all the difference between a stress free workday and one that is filled with it.
  • Keep your cool in tight situations: Be patient, be deliberate, and act after thinking it through. Possibly the most effective way to curb stress is to take it head on, albeit with a cool head. This holds for everything, be it a tough call with an unknown earnings report about to appear, or discovering your portfolio has gone down by quite a margin.
  • Here’s one more for good measure:

Now get back to earning like a wall street broker.

How One Encounter Changed My Life

Very few people know it but becoming a trader and stockbroker was not really my initial career choice, and I don’t think it pleased my parents at first. I knew from an early age that I did not want to go to college and had told my parents about this. They were at first very disappointed but then they thought I would find myself a decent blue collar career and maybe go to college later in life.

My high school career counselor had recommended that apply for a welding apprentice program with one of the local unions. It sounded great: 4 years of on the job training with very little classroom and exam work and a decent wage when I was finished. There was even the prospect of specialized training that would lead to a high paying welding diver career with upwards of $150,000 annual income.

For a 16-year-old kid that was an amazing prospect, but fortunately I had one encounter while on a train to NYC. I ended up sitting next to a guy in a very fancy suit and a cell phone and laptop. Bear in mind this was the early 90s where such technology meant that you were pretty important and wealthy.

So, I plain out asked him what he did and how he got into it. It turned out he was a commodities broker at the Chicago Mercantile Exchange and he was traveling to NY for a conference by train because he hated flying.

He didn’t tell me how much he earned, only that 6 figure bonuses were pretty common. 6 figures was as much as I could hope to earn as a welder, so I was immediately hooked on the idea and wanted find out more. I hounded this poor man for about an hour and with all credit to him he entertained my questions and took the time to explain what it was all about.

That set in stone my career choice and when I finished high school and went and applied to probably every single stock and commodity broker on and around Wall Street asking for intern jobs. I eventually got an intern position as an assistant on a prop-trading desk and I was addicted. From the first day I did not want to leave the office and I was always one of the last people to leave, hounding anyone with questions who would have a minute to talk.

This quickly gave me a reputation and within 6 months I was given a small account and I started my 18 months of training. It was a very intense time where I worked 80 hours a week and spent all weekend researching investments. This was easy for me as I after paying rent and eating I simply had no money to do anything else.

All that changed gradually and by the time I was 28 I had gotten my first 6 figure bonus check. The rush that came over me that day was immense, as I imagined what it would have been like to work a dangerous welding job for an entire year just to earn what I was given as a bonus payment.

The moral of this story is that sometimes you just have to go with your heart and that college is not the solution for riches as it is made out to be.