1. Trade on a higher time frame. There is noise in market prices. The lower the time frame, the more noise there is. Noise to me is similar to uncertainty. More uncertainty leads to more stress. Perhaps you should consider trading on a higher time frame where there is less price noise; less noise, less uncertainty, less stress.

2. Use stop-loss orders and limit orders. One mistake traders make is that they don’t minimize their losses. By using stop loss and limit orders, you will reduce the stress of taking big losses and making trading decisions in real time.

3. Have predetermined exit points and ACT on them. A trader must not only know what the profit target is BEFORE the trade is placed, but he must ACT on it when prices get there.

4. Have predetermined entry points and ACT on them. A trader must not only know what the entry price is BEFORE the trade is made, but must also ACT when prices get there.

5. Are you a discretionary trader or a systems trader? My opinion is that discretionary traders have to handle more stress in the trading markets. This is because they have to make a decision. Making decisions in real time trading creates a certain amount of stress. System traders, however, usually do not have to make an entry or exit decision. It has already been programmed into the system.

6. The size of your position in the next trade will also create stress. How is the decision made on what size to trade? Understanding volatility and having a way to quantify it will allow you to adjust position sizes accordingly. For example, if market volatility has increased, it may be reasonable to reduce position sizes and vice versa.

7. Do not exchange press releases. I change the emini market SP500. This market is considered more volatile relative to other markets. However, when news is released, the market will react. You may think that the market will react in a certain way, and you may be right, but the problem is that the market can overreact to the news. This can lead to losses because your stops will be affected; right before you’re right. It is very difficult and stressful to exchange news.

8. Are you trading too much? Studies have shown that more trading does not necessarily lead to more profit. It usually leads to more risks and losses. In how many markets does it operate? Perhaps you are trading too many markets and creating unnecessary stress. Sometimes it is better to specialize than to generalize. Reducing the number of markets you are trading will certainly reduce the amount of stress you are experiencing. Perhaps an analysis of your trades will reveal that you are more profitable in one market than another.

9. Similar to how many markets you trade, how many securities do you trade? Are you seeing too many actions? Do you have too many positions at once? Reconsider these ideas.

10. Do you have a disciplined money management plan or money management system that you are using? If not, how are you determining position sizes? Perhaps using a disciplined money management system will lessen the stress that comes from position size uncertainty.

11. Have you done your homework? Are you trading with a proven and historically proven system? If so, then it’s easier to trade the odds and handle losses when they occur.

12. Eat well, sleep well and exercise. Stress comes from a variety of sources and can be reduced by eating well, sleeping well, and exercising. Perhaps meditation can be helpful.

13. Take a deep look at yourself and notice if you have any dependencies or problems. Drugs and alcohol can affect your stress levels. Perhaps you have some internal situations or areas of your life that need attention. These need to be resolved. Seek help if you need it.

Thanks for reading this. I hope that helps. Do not hesitate to contact me.

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