What could be the reason behind this upsetting feeling that affects your trading decisions?

There are various factors that could always affect our trading decisions, and it is in our hands to be aware of them to help improve yourself as a trader. Besides, what if these are just modifiable factors that you can change? It would be a waste if you would just ignore them especially if you can also do something about it.

Often than not, we don’t realize that we have backed out on a potentially good trade due to being anxious. This then leads you to becoming frustrated and pushes you to invest when logically, you are not supposed to. The rush of emotions urges you to hurry and invest in a trade because you are scared of missing out.

These are just some of the many examples that traders do, or have experienced. But the thing is, there is no trader that has not experienced loss- may it be big or small. In fact, we know that these losses can always be a learning experience itself.

Now the question is, what could be the reasons as to why we feel anxious that then greatly affects how we think and decide as we trade?

We hear traders talk that the anxiousness comes from the market itself. The market’s volatile nature can evoke rapid emotional responses to a trader. But we surely can’t say that it affects every trader the same way especially since these are just external factors.

First, you would have to perceive the market as a threat for it to evoke a negative emotional response from you. If you perceive it as something that is a growing experience from you, and would work your way instead through the market no matter what, then even the volatile nature of the market wouldn’t bother you.

However, if you start your day, waking up and thinking to yourself that you must earn this amount of dollars per day, then you would definitely see the market as somewhat of a threat to you, resulting to this distress that affects your trading decisions.

Remember, the market is always changing.

How we perceive situations greatly affects how we respond to it as well. That is the reason why not all people respond to the same situation because we have different perceptions to the same situation.

So how can you adapt or change situations like this?

The answer is self-awareness. The reason is because you cannot really change what you are not well aware of in the first place. It is essential that you are conscious of how you respond to trading situations (especially poor ones) to exercise and shape your perception to be better, thereby, improving your performance as well.

When the market does not go how you wanted it to, you can think of it as an investment to your trading experience, thereby shifting your perceived threatsto opportunities.

When you are too focused on how the market should be, closing off yourself to the possibilities- even the bad ones, then that would result to you being distressed.

The down line is… It’s all in the mind-set.

However, if you start your day, waking up and thinking to yourself that you must earn this amount of dollars per day, then you would definitely see the market as somewhat of a threat to you, resulting to this distress that affects your trading decisions.

Remember, the market is always changing.

How we perceive situations greatly affects how we respond to it as well. That is the reason why not all people respond to the same situation because we have different perceptions to the same situation.

So how can you adapt or change situations like this?

The answer is self-awareness. The reason is because you cannot really change what you are not well aware of in the first place. It is essential that you are conscious of how you respond to trading situations (especially poor ones) to exercise and shape your perception to be better, thereby, improving your performance as well.

When the market does not go how you wanted it to, you can think of it as an investment to your trading experience, thereby shifting your perceived threatsto opportunities.

The down line is… It’s all in the mind-set.

About the Author Brian Chai

Brian Chai is an author, investor, trader and entrepreneur. Since his early education days, Brian has always had a keen interest in the finance field. He started out his career as a financial advisor and later went on to work for one of the top investment banks in the world. Capitalizing on his finance and trading knowledge, Brian went on to be a successful trader and investor in the financial market where he achieved massive portfolio gains. Wanting to share his expertise and passion in trading and investing, Brian left his banking job and went on to be a full time trader and his mission is to help people grow their wealth and live their dream life.

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