Tuesday, May 13

Manage Your Stress to Manage Your Trades

Raju couldn’t believe what was happening. Actually, the trade began on a positive note, as per his analysis.
He had seen what he thought was a price pattern; an ascending triangle, which looked to hit the top of the resistance line several times and the bottom trend line was about to touch. He heard herself say, “This is about to break up.”
He entered long believing that this continuation pattern was “definitely” on its way up so as usual he would keep a mental stop and that a mechanical stop wasn’t necessary. After order got executed, the price action did venture upward for a while, Raju was more confident in her decision and was patting the back for taking the right trade.
But, then the price action hit a supply zone that had not been identified or anticipated and it began to drop. In fact, the plummet of the price happened so fast that He felt herself become quite confused as to what to do. He began to panic as the tick dropped straight down leaving his stomach in knots along with feeling fragmented, frustrated and frazzled. Furthermore, his heart began to race,felt tension throughout his body. He tried to manage the trade by determining where to put in a stop order to liquidate the position, but He found himself frozen with the fear of losing so much money; but additionally He also loathed the thought of staying in as He was gripped by another fear of being really stupid. his brain was caught in a deluge of stress related brain/body chemicals that distorted his judgment and distracted his thinking.
Stress is a natural part of living; but when you are caught in a highly stressful situation your brain begins to release a number of neurotransmitters, hormones, peptides and other che

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