Continuing with burnout trading will have a fatal impact on the trader's psychological condition if left unchecked. Therefore, what are some effective ways to overcome it?

Trading may seem like an ordinary activity to the layman. Many assume forex trading is simply sitting in front of a computer screen, reading news, placing a few positions on a chart, and profits automatically flow in.

For traders, trading activity is not that simple. When they open a trading platform, they are overcome with anxiety and worry. At that moment, all traders will immediately face high-pressure situations that can cause stress.

When you feel extremely tired, stressed, and pressured while trading, the psychological condition is known as "trading burnout." trading burnout can be triggered by many factors, ranging from overtrading, extreme market conditions, unrealistic expectations, and loss experiences.

Typically, trading burnout occurs over a long period and gradually. Taking a bath triggers mental exhaustion like a faucet that keeps filling it. When it becomes too full, the water will overflow.

trading burnout

 

7 Tips for Overcoming Forex Trading Burnout

Burnout is essentially a term used to describe mental exhaustion in various conditions. Burnout sometimes affects not only mental or psychological aspects but also physical ones. Many people experience physical changes such as dull complexion, acne, hair loss, obesity, and other physical changes due to burnout.

In forex trading, you can also experience burnout. Usually, a trader experiencing burnout will show three signs. First, feeling mentally exhausted and oscillating between hope and disappointment. Second, feeling powerless, out of control, and lacking the motivation to trade. Third, losing confidence and feeling like everything done is in vain.

Feelings such as sadness, disappointment, confusion, stress, or even depression are indications that you are starting to experience trading burnout. Well, if you have experienced these indications, here are some tips to alleviate the burnout you are experiencing. The key is to understand the secret of trading psychology.

 

Pay Attention to the Signs

Trading burnout can strike at any time without warning. However, you can always sense its presence by asking yourself the following questions:

  • Do you feel hesitant when trading?
  • Do you often experience migraines, muscle pain, insomnia, and frequent illness?
  • Do you feel unmotivated to trade or feel stuck and helpless?
  • Do you begin to question why you should care about the trading plan you created?
  • Do you often close losing positions?
  • Do you start eating more, smoking, or drinking?
  • Are your emotions easily triggered, even for trivial reasons?

How many "yes" and "no" answers exist to the above questions? If there are more "yes" answers, there is a possibility that you are experiencing burnout. All of these questions are deeply related to your trading psychology.

 

Remember Your First Trading Moment

Do you still remember your first trading moment? Do you remember how it felt to understand technical and fundamental analysis? How was your first trading result, a big success or a failure?

Sometimes, recalling such trading moments can help you relax more. Moments when you feel "this is my path in life" will help you relive the excitement of that time. Use the excitement and enthusiasm you felt during your first trading moment to stay grounded in the present.

This way, you will be calmer and focused only on positive things. In addition, the stress you feel from trading burnout will gradually fade away.

 

Find a Trading Partner

Trading is usually done alone. However, having a partner who understands and supports you doesn't hurt. Having a trading partner will make you feel more relaxed. You can share all your thoughts and feelings with someone who truly understands. Your partner can provide feedback, advice, criticism, entertainment, and support.

Having someone who knows exactly how you are doing will help you avoid trading burnout. Your partner may also help you identify various trading mistakes and help you fix them.

 

Take a Vacation

Everyone has their way of releasing stress. Some people go to the mall, eat delicious food, go out of town, to the beach, climb a mountain, or do nothing all day. Some people also drive around "according to their feelings" to relieve stress. You must know what activities can make you feel "refreshed" again.

Regularly engaging in healing activities is highly recommended to prevent burnout. This way, you can avoid trading burnout before it even starts; or overcome it if you are already experiencing it.

 

Stay Calm

Engaging in other enjoyable activities is important, no matter how passionate you are about forex trading. Taking a break from the trading screen won't make you go bankrupt. If you constantly stare at the trading screen without taking a break, you're more susceptible to experiencing trading burnout.

Especially when you face losses or extreme market volatility, you may feel more stressed than usual. Instead of forcing yourself to continue trading and worsening the situation, step away from the market and take a short breather. Staying calm and taking a break can help you clear your mind and make it easier to refocus the next day. Otherwise, it might trigger an endowment effect on you.

 

Seek Help

When things get out of control, seek help immediately. You can ask for help from others. Don't bear the burden alone. You can meet with your parents, siblings, friends, or partner, or even seek help from medical professionals such as psychologists or psychiatrists.

Share the anxieties and worries you experience so that others can understand how to help you. Asking for help from others does not mean showing that you are weak. Therefore, don't be ashamed to seek help if you need it. While this might not seem huge, it plays a huge part in your trading psychology.

 

Take Control

One of the main causes of trading burnout is losing control over a situation. This can be a common issue for traders due to the dynamic nature of the forex market. Signs that you are losing control of a certain trading situation include constantly feeling bored.

Suppose you experience this while trading. Try to regain control by setting simpler goals for yourself. This is often triggered by failing to achieve specific goals, such as not being able to gather enough profit to use as starting capital or not reaching a target.

To avoid becoming more stressed, take action immediately to fix the situation. Manage your time wisely, update your trading journal, and develop a trading plan for a much better system for your next trades.

 

Conclusion

trading burnout can occur when the accumulation of triggering factors reaches a tipping point. If you suddenly experience several of the above signs, you may be experiencing trading burnout. Trading burnout is normal because forex trading is always full of risks. Traders are vulnerable to stress due to excessive pressure, unexpected market movements, or bad trading habits. It is important to take breaks and refresh to minimize the effects of trading burnout.

 

Controling emotion is crucial to ensure you don't experience trading burnout. To do that, you should train your trading psychology. You can read the ten best books to improve your trading psychology.