Best ways to increase resilience when forex trading29 April, 2018 by Paula Rodriguez in Forex Lifestyle
To increase resilience as a forex trader, get to know the best ways to cope and learn from challenging trading scenarios. For a successful trading career, it is important to experience different struggles and master how to overcome them. Because of this, being more resilient can boost progress while encouraging a proactive mental outlook despite difficult situations. With a resilient mindset, traders can rise above adversities and positively bounce back.
What is psychological resilience?
Being psychologically resilient means managing a healthy mindset that is able to overcome losses, move forward and learn from stressful scenarios. It is the ability to accept and thrive from obstacles instead of feeling discouraged or threatened. According to Positive Psychology, resilience is influenced by personal characteristics and life experience used when confronted with a challenge. Also viewed as a skill, traders can approach resilience more systematically when overcoming difficult trading situations.
Psychological resilience can be developed through time, effort and action. When faced with difficulties, traders who are resilient can take better control of both behaviour, mindset and outcome. With a growth-oriented and positive state of mind, traders can learn from every experience and increase resilience for a successful trading career.Build a growth-driven trading career and increase resilience especially during challenges. Click To Tweet
Top 10 ways resilience improves overall trading
Create a trading character that is resilient and adaptable especially during times of difficulty. In an ever changing forex market, traders need to be equipped with the best traits to overcome stressful conditions. With a more resilient state of mind, you can take on challenges and make use of each one as a valuable learning experience.
Here are the best benefits from increasing resilience when trading forex:
- Greatly strengthens personal development for overall trading character
- Allows traders to see that losses or setbacks are vital parts of the trading journey
- Builds strong mental outlook that is driven by growth and problem solving
- Encourages traders to see every challenge as an opportunity to optimize instead of a threat
- Increases sense of purpose and motivation
- Develops a more open-minded way of learning or perception
- Improves systems and performance based on findings from losses
- Allows traders to build more self-confidence for better mental health
- Promotes self-discovery during high-pressure or difficult trading scenarios
- Inspires traders to learn from experience that is greatly beneficial for both personal and professional progress
Things you can do to become more resilient
Resilience describes the capacity to accept losses, face the consequences and move forward. In a volatile market, forex traders need to be more resilient in times of uncertainty or difficulty. With the risky nature of the job, increasing resilience could be one of the best strategies to reach trading goals and achieve strong mental wellbeing. Here are the best practices you can try to boost growth and increase resilience in your trading career:
Nurture your coping skills
To boost resilience, traders need to work on coping skills and promote self-efficacy. Developing coping skills is key to becoming a resilient trader. Oftentimes, forex traders may feel anxious or disappointed with the current outcome of trades. Because of this, it is essential to find ways to nurture coping skills and thrive from demanding trades. Traders need to improve skills like problem-solving, flexibility, decision making and stress management.
Manage personal development
“Despite any mishaps, the idea of looking back and reviewing trading failure can actually encourage more success. Instead of avoiding past inefficiencies, traders can greatly benefit from facing the failure and learning from them.” – Personal Development for Trading Success
In Dr. Gill Windle’s research, resilience embodies personal characteristics that can either empower or hinder an individual during adversities. A personal development plan is a great tool to efficiently build better trading character. It encourages a more systematic way to enhance abilities and develop mental health while increasing resilience.
In many studies and social observations, having a network of support plays an important role in resilience. Without a form of support during hardship, research shows that it will be more difficult to increase resilience and solve problems. When facing obstacles, traders can get guidance from a mentor or fellow traders. This can help build a sense of comradery that can inspire determination and boost perseverance.
Do not put too much pressure
Putting too much pressure on yourself can greatly decrease drive and resilience to learn from losses. Oftentimes, the pressure to succeed in forex trading can be a distracting and crippling state of mind. This way of thinking can usually hinder traders from staying positive especially during setbacks.
Like in any endeavour, it may seem harmless to always strive for success. But in the long run, putting too much pressure can lead to unmanageable emotions and unrealistic expectations. Because of this, it is vital for traders to focus efforts towards a realistic outlook and steady growth in both performance and profit levels. When you lessen the pressure, you can easily manage emotions and energy towards optimization during stressful situations.After a challenging trade, stay resilient and focus on the improvements needed. Click To Tweet
Be comfortable with the unknown
Forex trading revolves around analysis and probabilities. With changeable market conditions, being resilient also means being aware that some trading scenarios cannot be precisely predicted. If you have a personality that is not comfortable with uncertainty, here are top ways to start becoming comfortable with constant market movement:
- Before trading real capital, always test your strategy and become comfortable with trading through a demo account.
- Research on the experiences of successful traders to gain a sense of awareness of what to expect and the struggles that come with it.
- Along with quality forex education, also make use of the different tools your strategy needs to manage uncertain market conditions.
Track your expertise level
Constantly tracking your expertise level can help traders become more attentive of capabilities as well as limitations. Being aware of your current skill level in trading can prevent you from getting too disappointed or excessively worried especially during challenges. When you know that you need to improve on a skill, you can enhance abilities and build more resilience. In the long run, this practice will prepare traders to face losses and efficiently prepare for the next trade.
Manage frustration and anxiety
It is important to realize that being resilient does not mean that you cannot be frustrated or stressed. Even the most disciplined traders may get overwhelmed from time to time. Despite this, the best way to build resilience in a high-stress situation is to learn how to manage emotions. Whether this is in the middle of a trade or after, managing any frustration or anxiety is one of the best ways to achieve resilience.
The Trading Edge shares that mindfulness helps strengthen emotional management. Whether this is fearfulness during large losses or happiness during large gains, being mindful towards your emotions when trading can lead to better psychological resilience.
Prepare, practice and plan
To avoid negativity or disappointment, forex traders should make a habit out of planning and preparation for a trade. Activities like practicing through a demo account or reviewing through a trading journal can be constructive especially when building an action plan from any recent letdown.
When going through difficult trades or generated losses, forex traders tend to find fault in the market or other sources that led to decisions made. Because of this, it is important to be realistic about trading expectations and market conditions. To increase resilience, traders need to have a good sense of awareness and knowledge of the volatile market conditions.
Find personal fulfillment
Finding personal fulfillment can increase resilience away from the trading desk. Despite being an analytical type of work, forex trading also relies on psychological resilience for success. When experiencing obstacles, finding contentment after a trading session can provide great relief. Personal pursuits, gratitude and self-fulfillment can inspire a more meaningful sense of state that can increase resilience on more personal level.
After a day of difficult trades, what do you do to de-stress and cope? Do you become less patient? How do you spend your time after losses? Where do you find self-fulfillment and inspiration?How do you cope after setbacks? Learn how to increase resilience and succeed in trading. Click To Tweet
Increase resilience to increase growth for trading
There are many ways to become a more resilient trader. Though these methods may seem simple to achieve, building a habit out of resilience needs discipline and mental strength. While practicing the different methods to increase resilience, the most important tool to optimize is your mindset. Even though forex trading deals with performance and data analysis, psychology plays a big role during the entire process. With the help of resilience, forex traders can face adversities with an open mind and the drive for progress.
Resilience is an ongoing effort that will take patience, discipline and self-confidence. Like any skill, you will need to commit and stay focused on improvements. To increase resilience, forex traders should practice how to cope and learn the Logic Behind Reevaluating Trading Failure.