0
0
A trader's Guide to Stress and Coping
Tue, Jun 17 2008, 07:42 GMT
by Forex Journal's Collaborators
This article is taken from the Forex Journal (June 2008 issue).
The author, Brett N. Steenbarger, Ph.D. is Associate Clinical Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY and author of The Psychology of Trading (Wiley, 2003). As Director of Trader Development for Kingstree Trading, LLC in Chicago, he has mentored numerous professional traders and coordinated a training program for traders.
- Brett N. Steenbarger helps us understand the stresses faced by traders, their coping styles, and how these affect emotional well-being and trading success
A trader of the Australian currency market is long versus the dollar, expecting that economic weakness in the U.S. will hold down American interest rates and reward the holding of higher yielding currencies. Suddenly the U.S. government reports a much higher than anticipated inflation number. Short-term yields skyrocket, as traders anticipate monetary tightening by the Federal Reserve. Immediately the dollar rallies versus other major currencies, and the trader’s position goes into the red. His heart rate increases, as does his rate of respiration and muscle tension. Thoughts race through his mind: Should I take my losses? Should I stick with my longer-term outlook? The market is gyrating up and down, lurching dozens of pips in a matter of seconds. The trader curses his decision to enter the position in advance of the inflation report. Reluctantly, he takes his losses, wondering if he is selling at the worst possible price.
_______________
Other Article in this Issue:
The Far Out Financial Chemistry Kit
Published on Tue, Jun 17 2008, 08:19 GMT
DPR International Pte Ltd
| One Raffles Place, OUB Centre #18-01, Singapore 048616
http://www.forexjournal.com/ | editor@forexjournal.com
Legal disclaimer and risk disclosure
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the authors and the publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. In commodity trading, as in stock, and mutual fund trading, there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade and your ability to bear the financial risk of losing your entire investment. It should not be assured that the methods, techniques, or indicators presented in this magazine will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in this magazine are for educational purposes only. This is not a solicitation for any order to buy and sell. The information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed as to accuracy of completeness, and is subject to change without notice. The risk of using any trading method rests with the user.Related reports
Timely Advice from a Pro Trader by The Forex Journal
Thu, Jul 2 2009, 12:24 GMT
Using swing breakouts in forex trading by The Forex Journal
Thu, Jul 2 2009, 11:00 GMT
Fundamental Forex Foundations - Institute for Supply Management (ISM) Services (Non-Manufacturing) by FXstreet.com Independent Analyst Team
Wed, Jul 1 2009, 08:00 GMT
The new NFA regulation - Facing the New NFA Regulation by FXstreet.com
Tue, Jun 30 2009, 16:07 GMT
Lessons from the Pros - Forex - Short Term Forex Trading Tips And Tricks by Online Trading Academy
Tue, Jun 30 2009, 11:24 GMT
Related content
FX Path » Forex Risk Management with Technical Analysis
Thu, Jul 2 2009, 07:22 GMT
1st on Forex » Chart Patterns at the Right Edge - Techincal Analysis Explained - But 1st …
Tue, Jun 16 2009, 08:08 GMT
Trading for a living » TrendLines work, don’t they? (2)
Fri, Jun 5 2009, 11:09 GMT
Forexology » Managing the Wolfe Wave
Thu, May 21 2009, 07:12 GMT
Trading for a living » Textbook topping pattern in Cable this morning!
Fri, May 15 2009, 11:11 GMT
Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.