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Wednesday, March 25, 2009

Stress indicators

...cont'd from yesterday...

If you’re allergic to taking tests to prove that you’re stressed out, you can use other indicators to arrive at the conclusion that you are too stressed out to trade.

Scientific studies show that the following events are among some of the most stressful events in one’s life:

Divorce
Marriage
Birth of a child
Death of a family member
Selling your house
Buying your house
Moving from your old house (or office) into your new house (or office)
Quitting (or getting fired from) a job
Starting a new job
Getting sued
Suing someone else

Your frame of mind under those stressful situations likely will disable you from trading properly. You are likely to do things like failing to enter trades that turn out profitable, staying in losing trades past your budgeted stop loss, failing to protect accrued profits, etc.

If the above-mentioned life circumstances appear in your life, then taking a holiday from trading until they clear out of your life would be beneficial.

...cont'd tomorrow...

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Copyright 2008 Raymond T. Lee. All rights reserved.
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