How to Combat Trader’s Burnout: Ultimate Tips
Currency trading is more than pips, charts and market trends. While these are important, it is the psychology that will make or break a successful trader. The challenge many traders face is trader’s burnout. Let’s take a closer look at what it is about, and how you can not only survive but thrive through the burnout.
Understanding the Burnout
Even if you’ve never heard the term before, it pretty much speaks for itself. You might notice that you don’t feel like you have burnt through your enthusiasm. You might not feel like trading anymore – even though you loved it a while ago. You are getting too upset by even the smallest losses while winning trades don’t give you the buzz they used to. Does it mean that you should quit trading forever? And if not, what should you do?
Don’t Quit, Just Take it Easier
Don’t call it quits! Even if you’re not a professional trader who spends 24/7 looking at the monitors and charts, you can get tired. Most probably, you’ve had too much of trading recently, and you just need to dial down on it. You may have gotten tired of following your open positions on the mobile app. If you don’t rely on placing stop loss and take profit, and never take your eyes off your trades, it’s easy to get overwhelmed! Try opening fewer positions and always place Take Profit and Stop Loss, so you don’t have to check the app every 5 minutes.
Don’t Feel Guilty For Taking a Break
You can even take a whole day off from trading, and it’s okay! Some traders reserve Mondays for rest, as this is the day when the trends are just setting in, and, unless there’s a major event, such as an election happening over the weekend, Mondays aren’t too volatile. Choose what is right for you, but the key is to make sure that your break does not exceed one trading day. Otherwise, it’ll be harder to get back in the game – think of going back to your regular workout schedule after a few week’s break from the gym.
Tweak Your Trading Style
Shake up your trading style! If you’re used to scalping (opening and closing positions as soon as you get the smallest profit), see how it would feel to hold your open trades longer. And vice versa – if you’re all about exercising your patience and holding your trades for days, try to scalp. You’ll be surprised how great it can feel to have the profit fast, even if it’s small!
Research New Instruments
Get out of your comfort zone and research currency pairs you’ve never traded before! If you’re used to trading majors, google up a few exotics, what they depend on and how they behave. You could start by researching a currency of your next vacation destination, for example! Make it fun! Alternatively, take another look at commodity currencies. Those instruments may never become your favorite trading pairs, but you’ll learn something new and will gain a new perspective, which is truly priceless for a trader.
As they say, work hard, play hard! And – reward yourself. For example, when you win the weekly prize on the Leaderboard, you may be tempted to keep the $100 prize in your account to increase your Trading Power. But keep in mind that the Leaderboard prizes are withdrawable! So sometimes the best thing you can do with withdraw your prize and have fun spending it! Be it some shopping or taking friends out for dinner over the weekend, reward yourself, so you can reap the rewards of your trading and start the new week happy. Good luck!
Risk warning: there is a high level of risk involved with trading forex, commodities, indices and other contract-for-differences. Past performance is not a reliable indicator of future results. You must be aware of the risks associated with trading directly or indirectly on margin. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please seek independent advice if the risks involved seem unclear to you and refer to our full risk disclaimer.
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