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How To Reduce Trading Anxiety And Fear While Trading


Trading is very stressful no doubt because it’s uncertain and risky. One day you make money and another day you lose. But still you cannot take your hands off trading as you get tied to this habit. There is ego clash, wins, defeats all this leads to anxiety and stress.

You can use these techniques that can lower stress levels and make you less anxious in your decision making.

Why do traders get anxious while trading?

Because they are uncertain about the results so they are worried, nervous and uncertain about the outcome resulting in stress.

So why people are willing to accept this stress?

Because it’s a trade-off for the freedom they can get from their job and the chances of scalability of income is there if successful.

If you want to become a successful trader you must overcome your anxiety or at least reduce it to a large extend. If you want to become a good trader you must get rid of trading anxiety, this will improve your trading decisions. This will make your trading less stressful and more enjoyable.

Here are five things you can do to reduce anxiety:

1. Try to trade less volatile stocks or Index like Nifty

If you trade extremely volatile stock your trade may hit stop loss pretty fast. This may lead to stress. However if you trade less volatile stocks then chances of winning is more as you have enough time to book profits or take some step before the stop loss is hit.

Big returns in short period of time is not possible so trade less volatile stocks and make an exit with small profit. With volatile stocks you will panic and take a loss.

You will need some expertise to trade volatile stocks.

2. Reduce Your Position Sizes

When you start it is advisable to reduce your lot size. In 10 lots just 1 point MTM will show 750 loss in Nifty (as per lot size of 75), and you may start to panic. Agreed a 20 point profit in a day will be great – but to get that you may have to cross a 10 point loss that is 7500 – that’s just too much to bear and you may exit.

If you are a technical trader you will get confused between seeing the MTM (Mark to Margin) loss or profits of too many lots. and watching the signals.

The MTM loss will create anxiety which may force you to exit the trade without reaching its goal.

Focusing primarily on making and losing money makes anyone fearful and greedy. You should hide your unrealized PNL when you trade to reduce trade anxiety and minimize emotions.

3. Have A Proper and Well Optimized Trading System

Though I do not believe in back testing a technical analyst has back tested my strategies and found them to be good.
https://www.theoptioncourse.com/back-testing-dilip-shaw-course-strategies-by-technical-analyst/

This is his email:

Hi Dilip,
As promised, here is the testimonial.
I am a full time trader since last 4 years. I took your course 7 months back and was really impressed. I had read lot of books before that but your strategy 2 rang the bell in my head.
I backtested 2 years of 15 minutes data of Nifty (Amibroker) and kept on playing with some parameters. I noticed that when VIX > 17 and Nifty premium received ( from Strategy 1) > 0.004 of Nifty current value, results were superb.
In last 7 months, I took 8 trades and all were profitable. The best thing about this strategy is it is scale-able. Right now I am doing it on 14 lots.
Once again thanks for sharing your knowledge.
Please don’t share my name
Regards,
Name Withheld

Though a back tested strategy is not front tested at least it gives you confidence to trade. If you can back test a strategy and found it to be good it will reduce your anxiety and you will be able to trade well. You will not unnecessary panic and take a bad trade.

This makes entering and exiting positions a lot easier. You always know what you will be doing, and therefore have a lot less anxiety and stress in your trading. When you have defined rules, you will not change your trading pattern. Without defined trading rules you are just gambling.

4. Move From Smaller Time Frames to Longer Time Frames

There is no reason to stick to intraday trading if you are not good at it. I have worked with many students and found that some are very busy in their job yet want to do intraday trading. If intraday trading is not realistic it’s better to trade longer time frames where you get enough time to book profits.

A mind free of clutters is very important to trade. You cannot do job with one hand and trade with another. If you do you will fail in both. I was caught red handed trading in office and was immediately sacked by my boss the same day. Do not let that happen to you.

If intraday trading is not for you better change your trading style and trade positional trades.

My Nifty and Bank Nifty course strategies has all positional trades. Course fees.

5. Pre-define Your Stops Which Includes Loss and Profits

If you pre-define your profit target and your stop loss you are better off psychologically. This will reduce anxiety. If you do not know how much you want to make or lose in the trade then your anxiety will increase. Pre-defining it keeps your emotions in control.

Peace your stop loss and target in the system once your trade is live. And then it’s better not to look at the trades and let the system take control.

Please like & share my blog with your friends:

Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.

My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:

What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses

You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.

This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.

What You Get?

Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.

You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.

Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).

Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.

The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

Technical knowledge is NOT required. No need to monitor trades every second.

In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.

Since trades are properly hedged there is no stress in trading my strategies.

I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.

11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

Read the details of the course here.

If you want to enroll for the course you can do so here.

P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.

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If you have any question you can contact me.

You can read about me here and my trading mistakes here.

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Dilip Shaw, Founder

Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.

Do Not Let Trading Take Over Your Time And Life
How To Improve Consistency In Your Trading

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 2 comments… add one }
  • Siddharth Pandey June 10, 2019, 12:44 pm

    Sir i have incurred lot of losses in the past 1 year.I trade in options only.Would like to know about your course.Can I make weekly profits if I trade in nifty weekly ootions.Plz help me with this

    • Dilip Shaw June 14, 2019, 1:21 pm

      Please send me a WhatsApp message or call me on 9051143004.

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