Scrolling through Twitter, Instagram and other social media platforms kind of makes you feel like trading can be a walk in the park. Perhaps it seems as if you can easily roll out of bed and click a few buttons. Well, you can. You may not do well as a professional trader, but it is pretty easy to click a few buttons and place a buy or sell order at almost any time of the day.
However, what does it take to be a consistently profitable trader? What does it take to not fall into the bottom with 90%+ of people who attempt trading and fail at it? Answer: A resilient, flexible, healthy, and strong mindset.
I remember when I first started trading back in 2014. The thought of leaving an open position overnight used to wreak havoc on my sleep due to anxiety over what might be the result when I woke up in the morning. I also recall when I first lost $800 in a crude oil trade that I placed on my phone while in a trading class. I just “knew” that my teacher could never have a loss and I placed a trade without understanding ANYTHING about it. The feeling of dread in my stomach was so strong, I had to leave the class to take a few deep breaths to calm down.
What I am getting at is, trading is a mental sport in many ways. The cognitive demand can be very high, day in and out. Taking losses and working through fears while engaging the market can slowly wear down the mind and body. Many people may not admit (on social media) that they might feel depressed because their trading losses have gotten out of control. Or they feel like their self-esteem is battered down after a string of losses. Before you get to the stage of trading like a true professional who 100% accepts the risk and can receive market information without taking it personally/feeling like you can control the outcome of your trade — you most likely will spend years having losses, watching others "make it” and feeling like you are in a hole you cannot get out of.
There are several tools that I use to help nourish my mind to give it the strength to navigate the ups and downs of my trading journey, the resilience to come back from draw-downs, and the flexibility needed to adapt to various trading conditions. Here are the tools that I use, along with the benefits I have received from them:
PROPER SLEEP: if you sleep like garbage, it will show up in your decision-making skills. https://www.columbiapsychiatry.org/news/how-sleep-deprivation-affects-your-mental-health
Meditation: helps minimize anxiety by coming back to the present moment (instead of ‘worrying’ about the past or future). Also, has helped me slow down and listen to subtle body signals that can inform me that I may not be in a peak state for trading. Free App (I don’t get paid to advertise this, but I have been using them for years): Insight Timer.
Water: when I am dehydrated, I feel foggy and also get headaches.
Lions Mane Mushroom Supplement: known to enhance brain function and health, offers mood and stress support, and boosts immune system. I shop on www.realmushrooms.com.
Sun: I take breaks between my trades to stand in the sun in my backyard. It is a natural anti-depressant. Even if it’s a cloudy day, the fresh air can help you reset before re-engaging the market.
Exercise/Walks: Find a way to let the trading day GO. I use strength training and walks in nature to help me release all residual feelings about my trading day/performance. Otherwise, it can feel like a burden that accumulates day by day and can lead to physical ailments, sleep challenges, and general unhappiness.
Socialize/Hobbies: If trading is your ENTIRE reason for existence and it’s all you do ALL day, then there is a high chance that your mental health could be suffering (addiction to trading can also be a challenge for some people). We all need to feel connected to people and our feeling of fulfillment can come when we have a purpose. Trading is a TOOL. Having a balance with other passions, people, etc, can help your trading performance more than you think.
Therapy: Some of our childhood traumas and ingrained beliefs WILL manifest in how we trade. Sometimes help is needed to dig deeper in order to re-wire subconscious beliefs and patterns that we cannot seem to figure out on our own.
This list certainly doesn’t contain everything that can be beneficial to help promote mental health. Everyone’s journey is different. However, if you are seeing that showing up at the charts is causing levels of severe mental anguish and even physical ailments (stomach aches, headaches, over-sweating, exhaustion) then it might be time to consider using some tools to give yourself the best chance of showing up and maintaining a peak state, in addition to being more receptive to having trading/market lessons stick through your development.
