Is trading stocks stressful?

Trading stocks can be stressful, but you can make it less so in several ways. The first and perhaps most important, not only for your stress levels but also for your longevity as a trader, is to understand that price movements have no connection to you as anindividual. The market doesn’t know you, and you have no control over price movements. Trading is about dealing with uncertainty and you need to embrace the uncertainty to succeed. This understanding will serve you well, but only if you take responsibility for your trades, and always do your homework before placing them. Every single trade needs to be logical and there has to be a concrete reason you’re placing each trade. If you have a logical reason for placing a trade, and later the company announces a profit warning and the stock tanks, you have no reason to kick yourself. You placed the trade based on sound information. You have a loss, but it’s as the result of the inherent uncertainty in the market. You’ll find you get most stressed when you have a losing trade for no good reason. These are the trades you enter without doing thorough research;trades made on a gut feeling, or because someone else says it’s a good trade. As long as you have a plan and you’re trading your plan, you shouldn’t experience too much stress. Naturally, you’ll experience stress when you lose money, but if you’ve done your job as a trader you should be able to deal with that stress and move on to the next trade. If you begin consistently losing trades your stress level might rise but remember that losing streaks aren’t uncommon. If you are still researching and logically trading, you should soon get past any losing streak. If you can’t understand the uncertainties you will deal with as a trader, and you constantly feel immense stress when trading, maybe trading isn’t for you. Constant stress will take a toll on your health, and that’s not something you should gamble with. If the stress becomes too great, maybe you need to stop trading.