Trading Psychology – Undo The Frustrations In Your Trading


Every trader can experience the feeling of frustration. Trading psychology helps traders to manage their frustrations in trading. Frustration means that the traders do not like what the market offers them. When things go wrong, people tend to become frustrated. But it is important how we react to frustrating things that can be crucial for a trader.

How to get Frustrated Trading

Accept every loss and personalize it. Be sure that the fast market action against your position was made by “them” on purpose, in order you stop and to shake you out. And the trader starts thinking why this always happens to him.

Make trades outside of your trading plan. When the market starts moving, enter even if it is not a planned action. Try new trading ideas. Always try new indicators.

Hold onto preconceptions. Come into the trading day with the understanding of how the market will trade. Hold onto the preconception, for example, that the market will go rally. Make sure that you buy every new low as the market is falling. And besides, it is recommended to ignore the market action (and your increasing losses).

This can be overstated, but not very much. I want to say that our mind makes us always feel frustration. We are captured in a continuing cycle where we are blaming, criticizing and shifting from one thing to another, but in the end we only harm ourselves.

How to get rid of the frustration

Here are some ideas about options that we have in response to events instead of feeling frustration concerning them:

Convert obstacles to learning opportunities. Accept responsibilities for losses. If you are responsible, you can change the situation. Also, ask questions. For instance, “What can I learn from this situation”, “How can my trading become improved?”. Regard losses as simple events and nothing more. Then learn something new from every event that will benefit your trading further.

Develop your trading plan. Spend some time and put some effort into making a plan. Award yourself for the work that you have done. Set a personal goal to stop responding to accidental market moves and begin responding to the market according to the setups and principles mentioned in your plan. When the market starts moving, do not jump right away. But when the market shows you an opportunity that is compatible with your plan, you take the trade.

Also take the alternatives into consideration. You might regard the market as ready to rally. It is great. Also foresee the alternatives. What would you do if the market starts falling? What price levels would be banned? Now you are ready for however the market might trade.