If you were drawn into the world of trading due to promises of quick money and little work involved, you’re likely in the midst of a harsh reality check.
Here’s the deal: struggling with stocks comes with the territory of trading for anyone who’s just getting started. After all, if it were so easy to profit from stocks, everyone would be a millionaire from the word “go,” right?
That said, frustrations and feelings of burnout can put a damper on your trading career and overall mood. The keys to avoiding and ultimately preventing burnout vary from trader to trader; however, we’ve outlined three tips for anyone looking to stay the course and turn their trading experience into a net positive.
Reevaluate Your Goals and Expectations
Perhaps the most prudent action any new trader can take is to think about why they got started with trading in the first place. What did you expect to learn? Likewise, what did you expect to earn?
Maintaining realistic expectations is crucial toward avoiding burnout: if you go into trading thinking you’re going to become a millionaire overnight, you’re going to be sorely disappointed. As noted by trading guru Tim Sykes in his beginner’s guide to penny stocks, huge profits are possible when you pace yourself and strategize. Your goals and expectations shouldn’t be to become a millionaire by tomorrow, but to score small victories from your portfolio over time to build a foundation of success.
Don’t Be Afraid to Walk Away
Whether we’re talking about specific stocks or the act of trading itself, it’s only natural to get plagued with a sort of “fear of missing out” when it comes to trading. As is the case with any potentially stressful project or undertaking, you can’t operate optimally without a clear head. Sometimes taking a break is the right thing to do for the sake of your long-term goals.
Caught up on with a trade? Sick of staring at the screen? Walk away. Seriously. The dangers of pushing through a mental block are not worth the risk of throwing away your trading career for good.
After all, there will always be other trades and opportunities out there for you to capitalize on. Failing to walk away is one of the worst mistakes new traders make but happens so often that it’s staggering.
Find Better Ways to Decompress
Another crucial component of avoiding burnout is figuring out legitimate ways to reduce stress and tension when those rough patches do arise. Ask yourself: how are you spending your time outside of the world of trading? You should consider common activities to relieve stress such as working out, reading or enjoying a creative hobby rather than drinking or vegging out in front of the television
Remember: trading shouldn’t be the only activity that takes up your free time. If you find yourself getting flustered or otherwise unable to focus, take your mind off of trading for a bit. You may be shocked at how reinvigorated you ultimately feel as a result of doing so.
While trading can certainly be personally engaging and financially rewarding, it can also be a major source of stress. Rather than allow yourself to be overwhelmed, stick to these three tips to keep focused on the big picture of becoming a better trader.