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Thread: Demand pressure and performance anxiety

  1. #1
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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 10:18 AM.

  2. #121
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    Quote Originally Posted by Quid View Post
    In confusing situation some people will directly cut the loss,but there are some people who hold the position longer for some reasones,in my opinion people should not cut the loss before knowing market volatility at that time,when low volatility is appearing we should have time to think before taking action.
    For easier in making analysis, especially for newbie, so you could set stop loss and it will close automatically. It's no need to cut loss manually if your psychology is not quite good. Trading in low or high volatility, it's depending on trader's style to gain profit better in which condition. High volatile market would be easier to gain profit but it will be higher risk to face loss too. The pressure will be higher in volatile market.

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  3. #122
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    Quote Originally Posted by Quid View Post
    In confusing situation some people will directly cut the loss,but there are some people who hold the position longer for some reasones,in my opinion people should not cut the loss before knowing market volatility at that time,when low volatility is appearing we should have time to think before taking action.
    We should always trade with a good stop loss. Trading without a stop loss is very dangerous. Many traders trade by taking high risk to multiply their capital in a short time. These kind of trading have a negative effect on our earnings and reputation in the society. Money and risk management is very important.

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  4. #123
    Trader Hukam's Avatar
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    According to me if any trader will take much pressure in mind at the time of trading that it will not work in a good way for him we should always feel tension free in forex and should concentrate on well learning also along with positive thinking also play an important role in our trading its just all about our experience in forex which make us a good trader here.

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  5. #124
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    Quote Originally Posted by Hukam View Post
    According to me if any trader will take much pressure in mind at the time of trading that it will not work in a good way for him we should always feel tension free in forex and should concentrate on well learning also along with positive thinking also play an important role in our trading its just all about our experience in forex which make us a good trader here.
    The market pressure may occur because we are too much to risk in a trade and I believe in this trade when we have a bit of a low risk and hence the pressure will be reduced and this will be better when we have trade with better emotional control in our trade and to that we must learn in this trade to get a better trade in risk management for safer

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  6. #125
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    There is a lot of pressure very shifting in forex dealing and especially in the scenario reflection expenses significantly upon or in the scenario of Details impressive and be in the other path guidelines that offers them and this happens with me a lot and the pressure excellent on the stress in scenario of decrease and the best keep away from the market on that day

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  7. #126
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    Both performance anxiety and demand pressure can be crucial for a trader. But if a trader has performance anxiety but he knows to control them then i think that won't be much harmful to him. It's because when he will be afraid to held his performance,then he won't open aggressive trade and think and analyse deeply before opening any new trade. That can help him to be saved from wrong decisions. But i admit that remaining away from these can help a trader to be more successful and make efficient trading.

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  8. #127
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    I would like to express my heartiest gratitude for submitting such an authentic thread. I failed to collect my moral courage to put my comments on it rather than giving thumbs up!
    Your suggestion is very appropriated. Actually I am trying to become a good trader at this moment without giving importance to earn huge profit.

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  9. #128
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    Demand pressure in a classical company in my opinion is important for getting good performance or result in his work. In this case, demand and result, are two items are related one each other. But this Principe will not run in the forex trading. If your fell not well in your mind, i advise you, do not take any decision to open any position, because it will make you lose your money, even all of your fund you deposited before.

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  10. #129
    Trader lawners1791's Avatar
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    be a pioneer that is to work with the good technicals of the preference to gain goals of the development of the good system. that the work comes from the good manage to met with the customs of the profile. to earn according to the better decision with the startegics to work withthe risks and the request.

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  11. #130
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    My assessment all-overs will annihilate ourselves as boring account with feel that we will be a bleak trader, while we charge accept to accept assured and an optimistic attitude in accomplishing of forex trade. do not let worried, all-overs , afraid , not assured , cynicism and anguish boss our minds because it can accomplish us added pressured our brainy in forex barter and alike can accomplish us abdicate this business .

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