Forex Trading Psychology
Reasons that Sole Traders are Negatively Impacted All-Round
February 17, 2021 | 8:37 am | The 5%ers' Blog > Forex Trading Psychology
February 17, 2021 | 8:37 am
The 5%ers' Blog > Forex Trading Psychology
Trading Alone is Negatively Impacted
One of the most challenging aspects of trading is – loneliness. Unlike other careers where people always surround you, many professional traders who move from an office to working at home, end up hibernating in that office. It becomes easy to shut out the world even without realizing it. Humans are social creatures, and the ill-effects of isolation are well documented. Mentally, trading alone can be incredibly damaging. So, what can you do to lessen the impact and decrease your loneliness while trading?
A Certain Level of Loneliness is Natural
Since the internet revolution, everyone has access to online trading. The internet is an incredible means to connect virtually, but, unfortunately, it doesn’t end up linking us emotionally. More recently, traders who previously commuted to offices and spent their days surrounded by co-workers are relegating themselves to a space in their homes.
It’s very typical to hear of a trader passing several days or weeks without making physical contact with another person. High volumes of trading alone at home can lead to the loss of key qualities. These qualities can develop when working in an organization with colleagues.
Potential skills that may be missed
- Guidelines from a more experienced colleague – You may leave much behind during the switch from office to working from home. The apparent change is having no coworkers and mentors to lean on for advice and education.
- Support and assistance during hard times – This ranges from a losing sequence to emotional issues, an abundance or lack of confidence all of the potential personal problems that a person faces in life. Whilst not apart of an organization, the burden to resolve problems shifts almost entirely onto you.
- Critical criticism – Missing out on learning from another viewpoint about your performance. It will become difficult to recover from tough situations and challenge your analysis. Unable to be as decisive about which may be the right move or path to take.
- More efficient learning process – In an organization, it’s possible to split research amongst colleagues. A pool of people brings a variety of opinions to discuss, more angles for resolutions, and it cuts the workload of backtesting, researching, and concluding the process.
- Social structure or network – Humans generally are meant to work or remain in a tribe of a society. It’s in our nature to share, be challenged, and observe others around us. Home office trading cuts off this social aspect and leaves many traders needing to fulfill the void elsewhere.
There is Hope
While it is mentally challenging, reduce loneliness by engaging in these simple practices:
- Join a trading community – Groups with like-minded people in similar situations. It can be a challenge to reach out but remember that most people are feeling the same way. Connect with traders and begin communicating, via Skype, Telegram, Discord, etc.
- Post your trading log publicly including your analysis and thoughts – Once you put yourself and your work out there, people will begin to show up around you. Good trading ideas will be validated while not so good ones will be challenged and will push you to question, rework, and refine your methods precisely. Your strategy and plan will improve when surrounded by the opinion and skills of others.
- Find a mentor – Every professional should have someone to receive guidance. To be the best, you should learn from the best. Listen to their experiences and use them to build and nurture your own experiences.
- Be a teacher – Your tiny or substantial part of what you already know is valuable to someone else. Take from your mentor but give back by guiding others. Teaching is a way to learn, as you’re committed to explaining yourself in greater detail. You will be amazed at how giving others information can contribute to your understanding and skill.
Trading Alone Bottom Line
Solitary trading is unnecessary. There is no need for anyone to have to feel the emptiness of trading alone. Disrupting the natural effects of isolation will serve your goals more efficiently and effectively. It will enable you to always be on top of things, with a brighter and more detailed understanding.
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