Stay Calm

​Charles is on edge. He isn't extremely uptight but he isn't completely calm either. He is just a little fidgety and it's getting to him. He is having a little trouble concentrating. He's reading charts incorrectly and he is having trouble outlining a trading plan. He can't figure out where to place his stops, where to enter or where to exit. Can you relate to Charles' plight? There are times when you just can't calm down. Your physiology is elevated and you are restless and on edge. It's natural and understandable, though. When your money is on the line and you are fighting for your livelihood, you can't help but feel a little uneasy. There's a lot you can do to calm down in the midst of a storm of chaos.

Sometimes we get flustered and upset without our conscious awareness. It seems to have come out of the blue. There was probably something that started it, however. Maybe we remembered a set of past losing trades earlier in the day, or saw a media report on a stock we traded last year and lost. However, it happens, we end up on edge. How it happens may not matter in the end. All you know is that your physiology is elevated and you are ready to overreact to even a minor setback. What do you do at this point? You don't have to mull over the reasons why you are agitated. You can take decisive action to calm down.

Your mind and body are closely linked. When your body is energized, you look at your physiology and try to interpret it. Sometimes you feel hyped up, and rather than interpret your physiology as excitement, you may label it as fear, uncertainty and anxiety. The way you think about dictates how you feel about your physiology. If you feel fearful, it is because you are looking at your physiology and thinking that something bad is going to happen and you are not sure what you will do. To change your physiology, you have to change your thinking. When you are worked up, you can use it to your advantage. Rather than feel in a state of panic, you can reinterpret your high agitated energy level as excitement and start feeling enthusiastic about what you might want to do next as a trader. It may also be useful to cultivate a carefree attitude. You might think, "It doesn't matter what happens. I'm going to just do my best and pat myself on the back for whatever I accomplish.

It's easy to get a little uptight while trading, but it's all a matter of perspective. If you feel on edge, tell yourself encouraging thoughts to turn things around. By cultivating a winning attitude, you can feel calm during the storm and take home huge profits.