The stress on everyone is at an all time high. Managing your trading mind during the pandemic is difficult. It is easy to focus on the pain and think of all the things that “could” go wrong. It is easy to make up disastrous stories about the future. People in these kinds of stressful situations tend to talk themselves into doing things, that seem perfectly logical now but are completely foolish to any rationally thinking person. Take a few minutes to get some ideas on how to manage your mind.
The human mind has evolved to seek out potential danger and then focus in on it. When it does this, when it turns its focus onto a danger two things can happen.
First is the mind shuts down your awareness of anything that is not the danger. Second it magnifies the perceived danger and puts you into survival mode. So what might be beneficial to you in the long-term is completely ignored for the purpose of relieving the fear or stress you are experiencing in the current moment.
We do not want to trade from the mindset of fear and scarcity. Doing so will prompt you to relieve short term stress, at the expensive of your longer-term success.
The calm, opportunistic rationally thinking trader on the other side of your trade really wants you to trade with your mind focused on fear and scarcity. He wants you to make foolish, in the moment decisions and provide him with a longer-term opportunity that he can take advantage of.
The most useful skill we can develop as a trader is the ability to monitor our own mindset. Then practice techniques to change our mindset in a way that will allow us to discover opportunities and immediately take advantage of them.
Get details in this episode of the Trading Performance Podcast, Managing Your Trading Mind During The Pandemic.