Information overload can get the best of even the most diligent forex trader. Oftentimes, reading and analysing charts can cause forex traders to take in an incremental amount of data. Without any break or interruption, excess exposure to reports or news may eventually cause information overload. This may affect overall productivity, efficiency and forex trading performance.
About information overloadInformation overload is a state where an overwhelming collection of data results in the failure to interpret or take in any relevant information. It describes a feeling of stress or anxiety from exposure to high amount of information. With the wealth of knowledge available today, the different sources of data can trigger a feeling of tension and confusion. Information overload can initially seem like a slight concern amidst the other demands of forex trading. But on the contrary, information overload is a threat to all crucial activities of forex trade. With that inability to process the entirety of the information presented, this type of state can be costly and unhealthy.Based on cognitive overload studies, David Kirsh shares that the modern workplace is a complex knowledge environment. Information overload has much to do with tasks, interruptions and intense environments. With both online and offline tools, the amount of data comes from a variety of sources. Research shows that most managers find it difficult to make judgement calls when experiencing information fatigue. In forex trading, the difficulty of processing too much information puts capital and quality trades at risk. Here are the negative effects of information overload for a forex trader:
- Leads to inaction and a halt in thought processing
- Causes trouble in decision making
- May result in low productivity and wasted time
- Increases confusion or disorientation when trading
- Disturbs effectiveness and concentration during executions
- Risks overall mental and physical wellbeing
- Causes loss of focus when reading charts
The uncanny symptoms of information overloadForex trades tend to take in a large amount of information a day. Information overload can unknowingly occur after long hours in a forex trading state of mind. Although this can lead to focus and productivity, the processing of too much data can actually disrupt concentration. To avoid the unwanted effects of information overload, get to know the uncanny symptoms of information overload:
- Feeling indecisive. Information fatigue happens when your brain takes in more than it can process. When you have charts, strategies or new ideas in mind, it is possible to bounce from one decision to another. If you’ve gathered information from a forum and from the news, for example, any conflicting ideas can cause indecisiveness.
- Overworking. Studies show that information overload can also cause the “hurry sickness” and overworking. It is the feeling of being in a constant mind frame of worry and urgency. When taking in a lot of data from forex trading, the mind can tend to rush and overwork in order to keep up. This results in thinking too fast and the need for immediate results.
- Sudden high anxiety. With the financial risks involved, it is normal to feel anxious while forex trading. When there is information overload, forex trader’s anxiety levels can easily increase and cause an abrupt loss of concentration. Be mindful when this anxiety becomes frequent or feels out of the ordinary.
- Multitasking is becoming more difficult. Over the years, studies have concluded that multitasking disrupts the brain from focusing. When you begin to experience information fatigue, processing new data becomes more difficult. According to Stanford's neuroscientist Russ Poldrack, learning while multitasking prevents additional information from being stored in the right part of the brain.
- Drop in comprehension skills. When there is more information than you can handle, you may not be able fully take in what you are reading. The influx of data can block your mind from truly understanding an idea. Comprehension skills are needed not only when reading text but also analysing charts and numbers. Make sure to be cautious with this symptom.
- Mental exhaustion. Mental fatigue is a clear symptom of information overload. If the brain tries to process a large quantity of new information over a short period of time, it uses extra energy. In forex trading, the large amount of data involved can occasionally cause mental exhaustion. Don’t forget that being mentally burnt out can also result in physical stress.
- Lack of deep sleep nights. Another symptom of information overload is the lack of feeling well rested from sleep. In a fast forex trading market, forex traders can feel a sensory overload that disrupts sleep. Because of the high amount of activity and exchange of news, forex trading can lead to trouble sleeping. If you find yourself beginning to experience insomnia, make sure to learn the Simple Solutions for Forex Trading Insomnia.
Best ways to outsmart information overload when forex trading
Start with high value tasksBefore going through your to-do list, prioritize those high value tasks that bring you closer to your forex trading goals. Information fatigue eventually lessens competence and causes attention loss. When you spread out your vital tasks for the day, you are risking full comprehension of forex trading information. It is important to begin work with trading activities that require complete focus. Set aside easier tasks and work on the more difficult or high value priorities. By doing this, you can process the more important information and ensure quality performance throughout the day.
Diligence when taking breaksInitiating a productive day of forex trading is a beneficial mindset to adapt. But aside from this, it is also essential to pause for breaks to improve effectiveness. Efficiency also has plenty to do with giving the brain a chance to take intervals when processing information. In the long run, taking in so much information is not necessarily a good thing. While devoting time for work is great, time is also well spent when you take a short rest. Whether you take a quick nap or listen to music, having 15-minute breaks can benefit productivity and concentration.
Conduct data detoxOnce in a while, clearing your head is the best strategy to fight information overload. Here are simple steps to take and ways you can give yourself data-detox:
- Get to know the things that are bothering you on a frequent basis
- Create a list of what is on your mind
- See which items on your list you should do, delegate or drop
- Find stress-free solutions to move forward
- Do this often to avoid interruptions and improve focus