Demand pressure and performance anxiety
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Thread: Demand pressure and performance anxiety

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    Demand pressure and performance anxiety

    Hi everybody!

    Today I want to talk a bit about two dangerous states of mind that traders face with: Demand pressure and Performance anxiety.

    While performance anxiety occurs after winnings streaks, demand pressure pushes trader to make trades, because he needs to make money (demand pressure is fear not to make profits, performance anxiety is fear not to keep them).

    For every trader those issues are different, but for most of them performance anxiety is more destructive.

    Why?

    If you haven't made profits yet, it's easier to cut your bad trades, because you are more critical about your ability to predict and to make "killing trades". If you had "flat" period in your PNL, or try to recover yourself from losses - odds that you will be more modest in your expectations are higher.

    And it helps to improve your performance! You start filtering bad trades and finally accept couple of good trades that move your equity curve forward. In some cases, you may feel that now you are trading "in sync" with the market, and you are inside a winning streak.

    But after that, you understand, that it's hard to keep that state of mind, and you start experiencing "performance anxiety".

    It's an emotional state and it makes you increase your risk to eliminate that discomfortable feeling, making more proftis (proving yourself that you are good trader and have nothing to worry about that much)

    Guess what happens?

    You multiply your anxiety by your increased leverage, and finally you may find yourself paralized - you are so emotionally connected with your trades, that can't cut bad ones, stop thinkng about them and go search for new ones. Also, odds that you will start do some revenge trading are also high.

    You understand that you should reduce your risk, but then you will have to face your anxiety which is uncomfortable and hard to live with.


    So, universal rule - DON"T INCREASE YOUR LEVERAGE when you feel performance anxiety.
    Embrace that feeling, try to live with it not to get rid of it. Maybe in some time you will find that you are more connected with roots of that feeling and will be prepared to reduce that anxiety.



    What about demand pressure?


    It is also emotional, and I would say - it's about expectations, we think that your goal is "to make X dollars a month". If you think this way, you would more than likely be pushed to make trades - and I would bet that those trades will be "bad ones".

    That's why it's so important to have process goals instead of performance goals.
    Don't think about money or any financial targets.

    Your goal is to be the best trader you can be, to trade in your best way, to improve every day. Other goals, especially financial, will keep you away from consistency.

    So, HAVE PROCESS GOAL INSTEAD OF PERFORMANCE GOAL

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    Last edited by Value trader; 12-30-2014 at 11:18 AM.

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    There is a lot of pressure very rolling in the forex market and especially in the case reflection prices significantly upon or in the case of News powerful and be in the reverse direction commands that trades them and this happens with me a lot and the pressure high on the nerves in case of loss and the best stay away from the market on that day

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    Quote Originally Posted by amrmorasamir View Post
    There is a lot of pressure very rolling in the forex market and especially in the case reflection prices significantly upon or in the case of News powerful and be in the reverse direction commands that trades them and this happens with me a lot and the pressure high on the nerves in case of loss and the best stay away from the market on that day
    i think we can avoid a big pressure on each our trade on forex trading if we always trading with a good money management and discipline with our strategy and use take profit and stop loss,example if we trading with use volume 1% from our capital and we also discipline with our strategy and use stop loss and take profit so we will can relaxed on each our trade and avoid a big pressure on our trade.

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    However, if the stress gets too great it can actually reduce performance. ... Uncontrolled stress can easily become frustrating given the right high-pressure .

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    Another great thread by roboforex. This informative threads help us a lot to strengthen our trading skills. Many traders trade under the demand pressure because they are in need of money and hence trade even when they not find any appropriate opportunity in the market. These kind of trading have a negative effect on our earnings.

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    Quote Originally Posted by cahyoadi View Post
    i think we can avoid a big pressure on each our trade on forex trading if we always trading with a good money management and discipline with our strategy and use take profit and stop loss,example if we trading with use volume 1% from our capital and we also discipline with our strategy and use stop loss and take profit so we will can relaxed on each our trade and avoid a big pressure on our trade.
    Indeed, if we have to reduce the proportion of risk in Forex will avoid stress too much but Risk 1% is considered very small and not just profit and also need a large capital and be more than $ 1,000, but I think that risks of 5% is considered more appropriate and the percentage of profit will be good

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    We're better not to use the leverage that big when we had performance anxiety, because leverage is used to calculate the profit and loss multiples us when trading forex. While the demand pressures in our control when we are able to control our emotions and anxiety. So we always advisable to have a calm mind, not too worried, because anxiety does not make our trading ability is enhanced.

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    Quote Originally Posted by martyn View Post
    We're better not to use the leverage that big when we had performance anxiety, because leverage is used to calculate the profit and loss multiples us when trading forex. While the demand pressures in our control when we are able to control our emotions and anxiety. So we always advisable to have a calm mind, not too worried, because anxiety does not make our trading ability is enhanced.

    We should avoid trading when we are mentally sad. We should avoid trading with a high leverage unless we are prepared to lose our capital. We should risk in Forex only that much which we can afford to lose. Staking more in trading will make us filled with anxiety and worry.

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    Quote Originally Posted by PROPENSITY100 View Post
    We should avoid trading when we are mentally sad. We should avoid trading with a high leverage unless we are prepared to lose our capital. We should risk in Forex only that much which we can afford to lose. Staking more in trading will make us filled with anxiety and worry.
    Yes forex is a business that require a very alert mind and full attention. We should not trade if we are not in a mental state to make good decisions or there is any type of stress or tireness. The more we invested the more we shall remain uncomfortable until our trade is decided by the market so it is good idea to invest what we can easily afford to lose.

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    Demand pressure and performance anxiety are really two harmful factor of a Forex trade . But removing these or keep our self away from these is not easy .We should try to avoid because anxiety will kills our confidence because with this we feel that we will be a pessimistic trader . It cause optimistic attitude in doing of Forex trade. So that we may quit Forex trading though the fault is ours .We should trade when we are okay and trade withe the amount of risk which is affordable for us . Loss more in trading will make us filled with anxiety and worry.

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