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8 Ways to Reduce Stock
Market Stress
=Do not
watch Bloomberg, CNN, CNBC, or any stock news channel for a lengthy time. All
the news will disrupt your rythm. Remember that the stock market is all about
demand and supply, simply put. You do not need to listen to all those reporters,
who themselves, I bet, are not even investors or traders. Being informed is good
but being too paranoid with news data is not needed.
=Do
listen only to yourself. There will be a lot of rumors in the grapevine
regarding inside information on certain stocks. Take these with a grain of salt.
In fact, treat these as humor only. You are the only one who controls your
investments so you should do your own homework. You will be responsible for all
the sound decisions you make so you have prepare yourself very well and not
follow rumors floating.
=Get
enough sleep every night. Sleeping 6 - 8 hours a night would give you a big
advantage on how you respond and react to market changes during the day compared
to sleeping less than 5 hours a day. Having a good night's rest allows you to be
fresh and gives you a sharp mind to face not only the market challenges but
everyday life as well.
=Have a
plan. Have an investment methodology that caters to your emotional, spiritual
and risk appetite. Develop a methodology that works for you. Investing and
trading according to your working methodically will help you generate wealth and
minimize your losses, thus reducing prolonged stress. Many people get stuck with
bad stocks because they are confident with themselves, do not let this happen to
you.
=Eat
healthy foods. Trading makes use a lot of mental energy and puts stress on your
body. Keep your body well balanced with what you eat. I always eat fresh fruits
everyday usually apple, orange, or kiwi. Try not to make a habit of eating junk
foods and replace it with healthy alternatives like fruits or oat crackers. Why
not even make your favorite fresh fruit juice/shake while the market is open, it
gives you a break from the mental concentration and allows your brain to soothe
itself.
=Surround
yourself with optimistic individuals. Being with people who are stressed and/or
negative vibes would just give you more stress to deal with. Instead, talk to
your trader/investor friends who are optimistic and give sound advice where you
can even learn with.
=Learn to
accept your losses. No trader can win all the time in the stock market. If you
can maximize your profits and minimize greatly your losses then you will find
yourself generating wealth in no time. One of the hardest to learn and one of
the biggest stress inducing aspect are the losses from the stock market. Set on
your methodology an acceptable loss percentage rate and follow it. I set mine at
5%. Whenever I already lost 5% in a stock that I bought, I immediately accept
the loss and sell it. Protecting capital should be the priority. In the stock
market, you should accept humility in what you do as the price is king and you
are just following it.
=Do not
jump the gun. Stop, think, then act. Three simple things you should remember to
avoid stock market stress in the first place. Before you do anything, stop what
your instinct and emotions are telling you. Think about the situation on the
possible risks and rewards you are entering into. Then act upon your best
judgment what you have to do in order to minimize loss and maximize gain. |
