Hello @birsha. In my opinion, there is no better environment in which to bring out our anxious tendencies than trading. Why? Because monetary loss and being wrong are both common triggers. When combined they can be quite potent.
Being self-aware is the first step towards finding the path forward. You clearly have that one under control so kudos to you. To add to what Kay has shared above, I would suggest the following:
1. Know your data well. There is power and strength in knowledge. Anxiety stems from not knowing. Journaling removes the guesswork from trading so that you can make decisions around risk from a place of confidence.
2. Become well acquainted with MAE (read Kay’s stack on it) and MFE. If I had to choose only two numerical metrics to track as a trader it would be these two.
3. Get the reps in by placing trades. There is no better way to condition the mind and body than the execution of a task.
4. Increase your risk slowly. Move your risk up in 10% increments, for example, rather than by 50% or in multiples. If you are presently placing trades with $100 risk, for example, your next level up should be $110, rather than $150 or $200. Gradual exposure to increasing levels of risk gives your mind the opportunity to normalize each level.
In short, with MAE, you're looking at how far a winner moves against you before it turns into a winner (i.e. you're looking at how optimal your stops are). With MFE, you're looking at how much you've left on the table by selling too early or late.
Trading small when you lack confidence is a very sensible thing to be doing - good on you.
As to the anxiety itself, it comes back to identifying root cause. Is it a lack of confidence in your setup? Are you concerned about situational awareness?
I've often found (or seen) that a lack of confidence comes down to not having done enough work. The more prepared you are, the more confidence you have, and very likely the less anxiety you'll suffer.
I'm not a naturally confident person. But as a trader, the more I studied - particularly my own numbers - the more my confidence grew, and it also enabled me to size up (because I gained the confidence to tighten my stops).
So, yes, I can't recommend journaling - and journal analysis - enough.
Thanks. I think being anxious is my natural biological state, that is biologically set in my body. I have done lots of prep, i will try journaling. Thanks 🙏
Honestly, journaling changed my trajectory as a trader. Glad to hear you'll try it!
On anxiety, maybe it'll help you to hear that I'm really not naturally self-confident. Even as a writer, which is what I'm (currently) best at, I always question whether what I'm doing is good enough. What helps me is (1) getting positive feedback from readers and (2) being able to see that what I'm writing today is streaks ahead of what I published even just a few months ago. That means that no matter my current ability, it's improving. I'm better today than I was yesterday, last month, or last year, and feel that by continuing to practise and listen to the feedback I'm getting, I'll continue to get better.
Hello @birsha. In my opinion, there is no better environment in which to bring out our anxious tendencies than trading. Why? Because monetary loss and being wrong are both common triggers. When combined they can be quite potent.
Being self-aware is the first step towards finding the path forward. You clearly have that one under control so kudos to you. To add to what Kay has shared above, I would suggest the following:
1. Know your data well. There is power and strength in knowledge. Anxiety stems from not knowing. Journaling removes the guesswork from trading so that you can make decisions around risk from a place of confidence.
2. Become well acquainted with MAE (read Kay’s stack on it) and MFE. If I had to choose only two numerical metrics to track as a trader it would be these two.
3. Get the reps in by placing trades. There is no better way to condition the mind and body than the execution of a task.
4. Increase your risk slowly. Move your risk up in 10% increments, for example, rather than by 50% or in multiples. If you are presently placing trades with $100 risk, for example, your next level up should be $110, rather than $150 or $200. Gradual exposure to increasing levels of risk gives your mind the opportunity to normalize each level.
Super thanks 🙏, btw i dont know what is MAE and MFE, i will look it up ❤️
Couldn’t find MAE and Mfe anywhere, is there a link? Thanks in advance
I've written about MAE here: https://tradingresourcehub.substack.com/i/133749431/mae
MAE = maximum adverse excursion
MFE = maximum favourable excursion
In short, with MAE, you're looking at how far a winner moves against you before it turns into a winner (i.e. you're looking at how optimal your stops are). With MFE, you're looking at how much you've left on the table by selling too early or late.
Thank you
I have anxiety when committing more. I only play with small dollars. I need to follow this advice
Trading small when you lack confidence is a very sensible thing to be doing - good on you.
As to the anxiety itself, it comes back to identifying root cause. Is it a lack of confidence in your setup? Are you concerned about situational awareness?
I've often found (or seen) that a lack of confidence comes down to not having done enough work. The more prepared you are, the more confidence you have, and very likely the less anxiety you'll suffer.
I'm not a naturally confident person. But as a trader, the more I studied - particularly my own numbers - the more my confidence grew, and it also enabled me to size up (because I gained the confidence to tighten my stops).
So, yes, I can't recommend journaling - and journal analysis - enough.
Hope that's helpful to hear!
Thanks. I think being anxious is my natural biological state, that is biologically set in my body. I have done lots of prep, i will try journaling. Thanks 🙏
Honestly, journaling changed my trajectory as a trader. Glad to hear you'll try it!
On anxiety, maybe it'll help you to hear that I'm really not naturally self-confident. Even as a writer, which is what I'm (currently) best at, I always question whether what I'm doing is good enough. What helps me is (1) getting positive feedback from readers and (2) being able to see that what I'm writing today is streaks ahead of what I published even just a few months ago. That means that no matter my current ability, it's improving. I'm better today than I was yesterday, last month, or last year, and feel that by continuing to practise and listen to the feedback I'm getting, I'll continue to get better.
Again, I hope that's helpful to hear.
Thanks again