3 Powerful Trading Psychology Strategies and Ways to Follow Them: IQ Option
Statistics say traders and financial analysts rank among the most stressful jobs, alongside surgeons and firefighters. For them, looking after their mental well-being is just as important as mastering technical analysis and strategy.
Let’s delve into the most challenging psychological factors in traders’ work and discuss effective techniques for combating them.
What impact trading has on your mind
The main factors that make traders anxious are uncertainty, the risk involved, and the fear of losing money. All this stress can make traders freak out and often bail out of good trades too early, which means they make less money. Then they stress even more, and it just keeps going in a circle.
Below, we cover three most impactful stress factors and suggest time-proven solutions that helped many traders.
1. Don’t let your feelings mess with your trading
It’s easy to get freaked out after a bunch of losses or feel almighty after a winning streak. But letting your emotions take over can mess up your trading plan and result in frustrating mistakes.
Here’s how to deal with those emotions:
- Check yourself before you wreck yourself. Instead of looking back and asking, “What was I thinking?” in regret, pause and think about how you’re feeling right now. Ask yourself:
a) What emotions am I feeling? (Angry, scared, greedy?)
b) How does my body feel? (Tense shoulders, shaky legs, light-headed?)
c) How are my emotions affecting my decisions?
Take a breath, give yourself a quick massage, or do some exercises to calm down before jumping back into trading.
- Know thyself. If you’re the emotional type, accept it and come up with a coping strategy. Maybe don’t trade when you’re in a bad mood or super hyped up.
Believe it or not, just acknowledging your emotions can take away some of their power. It’s like looking at yourself from the outside and asking, “Is this trader acting cool or losing it? Is he finding solutions or making more problems?”
How can the IQ Option platform help you cope with emotions
Use technical analysis tools — they’re emotionless! Always double-check your moves with indicator signals.
Don’t forget about Stop Loss and Take Profit — they’ll keep you from losing too much or getting too greedy. If your FOMO doesn’t allow you to settle with a Stop Loss, try a dynamic SL: the Trailing Stop.
2. Own your focus
When you’re in the trade room, you have to watch how prices move, check what indicators are saying, keep an eye on what other traders do, etc. It’s a full-on concentration game.
But let’s be real, with all the fast-paced social media content, it’s tough to concentrate for more than a minute. But focus is like a muscle — it needs exercise. Without becoming a master of your focus, you won’t be able to succeed in any area of life.
Here’s what the psychologists say:
- Ditch the distractions. Put away your phone, find a quiet spot, and make a deal with your family to leave you in peace for a few hours.
- Set the timer for 21 minutes. That’s how long it takes for your brain to really get into a task. During those 21 minutes, promise yourself you’re all about trading — nothing else. After that, you’ll start thinking faster and become more creative. Seriously, you’ll be like, “Am I really this smart?” Yes you are, and the longer you can stick to one thing, the smarter you get.
How does the IQ Option platform help traders stay focused
The IQ Option platform is designed to highlight the important stuff and keep distractions out of sight. Plus, you can tweak how it looks to suit you. Some folks set a dark theme for better immersion, while others make the lines of the key indicators bolder and more visible.
3. Master work-life harmony
According to ResearchGate, long hours at work is the #2 biggest stressor after chasing profit goals. But the aim isn’t to cut down on work hours; it’s about making those hours count.
So, how do you do that? Simple: get a life.
Don’t let the stock market rule your brain 24/7. Take more breaks and relax in healthy ways:
- Get active: sports help release stress and pump up those feel-good endorphins.
- Socialize: spend time chatting with real people, not just online.
- Change your surroundings or switch up what you’re doing. Some folks find doing “dumb” tasks during breaks — like mopping the floor or playing with pets — helps clear their head.
- Breathe and meditate: certain types of meditation, like transcendental meditation, can work wonders in calming your mind and boosting creativity, even in just a few minutes.
- Seek joy: do things that make you happy, even if it’s just small stuff. After all, we’re making money for the feels, not just the cash.
How does the IQ Option platform help balance work and life
Price alerts are your best friend. No need to stare at charts for hours; set up your alerts, and the platform will ping you when something important happens.
And if you’ve got a case of FOMO, IQ Option has a mobile app, so you can step outside without worrying about missing a market move — you can handle your trades on the go.
Conclusion
Trading comes with its fair share of stress, with long hours and constant pressure to perform. By acknowledging and managing emotions, maintaining focus, and finding a balance between work and life, traders can navigate the challenges of the market more effectively. Utilizing tools and features provided by platforms like IQ Option can further support traders in managing emotions, staying focused, and finding joy in the process.
