Imagine having to present in a crowd of people as part of your personal job interview. You really want this job and you prepare yourself to get this presentation run flawless.
But then you start to have this panic attack, you know you know your stuff and you keep telling yourself you’ll get this right. But as you were presenting you notice some of the audiences weren’t paying attention to you at all.
You start to think if you are being sufficient in engaging them. As they seem to be losing some interesting and that fear gauged you that you’ll lose this job. As you try to improvise something attention grabbing and original, but your panic attack gets in a way. Thus, performance anxiety steps in the game as your presentation suffers a lot out of it.
So what is performance Anxiety?
A performance anxiety occurs anytime when our thinking when performing interferes with the way you act. It’s like you get mentally blocked if we worry too much. Thus results in forgetting the material we studied.
This is highly the common problem among traders. The most common are proprietary trading firms and hedge funds. Performance anxiety strikes when a trader is doing really well and tries to take an even greater risk by trading larger positions.
Anxiety takes a lot of toll among traders, that they fell into slumps and become to worrisome about losing that at the end they fail to take in good trades. A trader may feel a lot of pressure in making profit that they prefer to cut winning trades short and block ideas to reach its potential.
Anxiety and panic attacks just don’t come from situation. They also manifest from our perceptions of those situation. If you convince yourself you are a hot candidate for this job and that you have a lot of job options. Thus, your way of thinking will reverse from less pressurize situation.
Traders engage themselves with their own anxiety. Instead they view a loss as a normal thing. They see it as something as a huge threat to their livelihood and self-perception. Whenever a trader makes a huge amount of money, they feel absolutely good about themselves. But when losing days falls upon them they become so consume with this lost. Instead they’d trade for profit; they trade so they won’t lose any more money.
Some traders try to see the negative into positive, not realizing that this is also one common mistake. They get so highly motivated with their positive expectations and reaffirmation on making money that they fail to realize that this impacts their performance as well- not able to fully identify negative to positive performance. We have to determine as well reality.
How to overcome Performance Anxiety?
One of the most helpful tool we can use to overcome performance anxiety is to carefully track all your worst trading days and make conscious effort in learning from those experience. This will help in turning your losing to an opportunity for self-coaching and not just by expecting failure. Alternately, you can use your lost to trigger any market review. Like are your other stocks in that sector selling off? Or is the broad market dropping? If the market is not behaving the way it normally does then take this as a loud sign or message. Take a clearer indication where to target your ideas the way you wanted. Thus, you will learn where that areas you need to improve.