Performance anxiety is one of the most common symptoms of financial trading, especially during prolonged market slumps or after bad trades. That’s why there’s an entire field devoted to helping individuals develop their trading psychology, which refers to the emotions and mental state that dictate success or failure in the financial markets.[1] While discipline and risk management can go a long way in alleviating performance anxiety and improving trading psychology, simple relaxation is often the best remedy.
Relaxation is important in all aspects of life, but is especially critical in the global financial markets, which operate 24 hours a day, five days a week. Relaxation can help you disengage from the markets, keep emotional swings in check and help you develop a healthy relationship with trading. Below are five techniques traders can use to reduce their stress after a long day in the market.
Take a hot bath or shower
Nothing says relaxation like taking a long, hot bath or shower, preferably before bedtime. Immersing yourself in warm water can not only relieve tension and soothe aches and pains, it can increase your oxytocin levels and reduce stress. If you’re feeling under the weather this winter season, a hot shower can serve as a natural decongestant, helping you to relieve cold symptoms.[2]
Exercise
While exercise is a form of physical stress, it contributes to overall health and wellbeing, which are critical to helping you relax. Most of us don’t exercise as much as we need to, especially when we’re fixated on making money trading the markets. Lifting weights, running and swimming are all great exercises that can elevate your heartrate, your metabolism and your spirits. These exercises, as well as many others, have been verified in clinical trials to reduce anxiety and depression. Making physical exercise part of your daily routine can help you reduce stress in remarkable ways.[3]
Embrace Nature
Have you noticed that many relaxation techniques involve leaving your home? What better way to leave the trading screen behind for a while than by heading for the great outdoors. Heading to the mountainside, beach, lake or just soaking in the sunshine can help you shake the cobwebs away. Whether it’s heading out onto the water, going for a hike or even gardening, you’ll be glad you took some time to breathe in the fresh air.
Get a pet
Believe it or not, studies clearly show that people with companion animals such as dogs and cats have lower blood pressure and an overall more relaxed demeanor.[4] Pets can bring a great deal of joy and comfort to one’s life, provided you have enough time to properly attend to your furry friend. If you don’t have time to take care of a dog or cat, consider a small fish tank. Believe it or not, owning an aquarium can significantly reduce one’s stress levels. This phenomenon is called aquarium therapy, which is believed to have many positive effects on overall health.[5]
Take time to think
If you really want to be like Warren Buffett, who is widely considered to be the greatest investor of all time, you should consider devoting enough time during the day to thinking and reflection. According to Mr. Buffett, 80% of his working day is spent reading and thinking. While we don’t recommend that you eliminate all electronics from your office like the Oracle of Omaha, you should devote enough time during the day to silent contemplation. This will help you develop sounder perspective and remain calm in trading and in business. Your thoughts should be centered on your progress as a trader and what other steps you can take to improve your success.[6] This sort of reflection will give you a better appreciation of where you are and where you’re headed, providing a calming sense of relief that everything is going to be OK. If you really want to relax, working on your mental game is extremely important.
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[1] Investopedia. Trading Psychology.
[2] Heather Dale (May 21, 2015). “Hot or Cold? The Benefits of Both Kinds of Showers.” Pop Sugar.
[3] Harvard Men’s Health Watch. “Exercising to relax.” Harvard Health Publications.
[4] Dina Spector (August 15, 2013). “10 Scientifically-Proven ways To Relax.” Business Insider.
[5] Nina Shadi (October 30, 2013). “The Benefits of Aquarium Therapy.” Within an Open Heart.
[6] Katie Newton (November 6, 2014). “Take Five: How Top Business And Trading Pros Relax.” Little Fish FX.
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