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?
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 which 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.