Advice into Cash Part 5 - External and Internal Pressure
Pressure, pressure, pressure, pressure… it is pretty inescapable. As a result, it is well documented that stress levels in everyday life have been on the rise for many years. Whether the pressure comes from home life, work life, or our own heads it exists and can be seriously stressful to deal with. At times, the relaxed care free life that some of us dream of (including myself) can seem a million miles away.
Let me define the two distinct types of pressure:
External Pressure – These are all the pressures put on you by other people or agencies.
Internal Pressure – These are all the pressure you create yourself in your head.
How do they effect our trading?
Pressure can have a few effects both positive and negative
Some people thrive under pressure and produce their best results
Some people focus more when under pressures
Some people crack under pressure and make awful decisions
Some find it hard to relax and do not focus properly due to over-thinking
How do you perform under pressure?
This is the key, if you thrive under pressure then you may not need to change your situation. It may suit you as a trader to have as much pressure as you can handle, so that you can go ahead and trade in the zone.
However, if pressure has a negative effect on your trading then you need to find some ways to decrease it, so that your performance is not compromised.
Lets go through some specific examples of pressure people may face when trading and how to de-escalate it as much as possible.
External Pressure examples:
Skills to pay the bills – I need to make money to pay the bills! I have a set target each month and must hit it or I am finished. Solutions:
Keep your job until you are consistently making enough money to earn a living every month for at least six months
If you lost your job and this is your solution then sign up for any benefits you are entitled to and look to get another job while you learn
Family pressure – Usually to earn money or to make trading pay quick or quit it. Solutions:
Rushing the process of learning to trade doesn’t work, you have to take your time
Keeping your job is again a possible solution
Use a spare room to trade away from any distractions
Internal Pressure examples (a.k.a the battle with your head):
Some thoughts that may be effecting your performance -
‘I must make X per month as that is my target figure!’
‘I must make the main income for the family’
‘I have to be pro now as I hate my job’
How do we get around these thoughts and feelings if they are having a negative effect on our trading?
Just try to think to yourself, there is no real rush, no real pressure and I can still earn and learn. If you remind yourself of this during the hard times, you will hopefully be able to fight off all of the negative thoughts.
The nature of trading is that it is a profession that will always bring with it an element of uncertainty. You will not get the same wage every month, pure and simple. If you like a monthly pay packet then keep your job and trade on the side. Relieving pressure from yourself is not simple but it is possible. If you believe in what you are doing and you have a passion for it then you should feel you can follow your dreams, don’t feel bad about wanting to. Remember to enjoy trading, that is why we do it at the end of the day, our passion for sport and betting got us here.
If you need any help with this, just ask! That’s what our Facebook page is for!