It might be new to your ears but there is an existing condition, especially in the field of writing where writers are having a hard time to think of what topic to write or even while writing, they find it difficult to proceed with their words. This condition is known as “Writer’s Block.” The author loses the capability to complete his or her work or even produce another one. Moreover, there is also an almost similar condition that happens to traders.
In this article, you will be able to learn a slowdown condition that happens to traders of all ages and skills. This condition is termed as “Trader’s Block” – since the description is somewhat similar to that of writers, wherein a trader finds it difficult to come up with a new trade setup and it might be frustrating.
What does it mean by Trader’s Block?
This condition usually happens after a huge win or loss. Traders affected by this condition may find themselves having a hard time realizing a new trade due to fear that he or she might not be able to repeat success. On the other note, there are also traders who experience the opposite – they fear that loss may be replicated at once should they decide to make a move.
See also: How to conquer your investment fear
What are the symptoms when a trader has been struck by Trader’s Block?
Generally, the main symptom is that traders are always looking for the perfect trade (perfect entry, perfect timing, and perfect pricing). However, a perfect trade does not really happen in real life. Therefore, traders experiencing this condition feel somewhat incapacitated to make a move and unable to make progress from your last circumstance. They might come to a point where charts and a bunch of information presented to them does not really make sense.
A trader can also feel like he is processing too much information and that leads him to the inability of putting things in order and formulate a good investment strategy. This results to traders literally freezing on the decision-making process since there is an excess of emotions that go against trading coming into play and then crowding one’s reasoning and judgment.
What can you do to cope with Trader’s Block?
More often than not, it is hard for traders to realize or accept on their own that they are experiencing trader’s block. Once they do, they tend to make an effort to get themselves out of such condition. However, the more they insist, the more it harms them. It then can result to forcing of trades and then finding themselves getting buried in the quicksand.
Experts advise that instead of forcing your way out of the condition, what they advise is that the trader must stay calm and cool. Once you feel that you are already relaxed, you have to review the fundamentals of trading and how to better apply it with the kind of trading system you have. Refreshing yourself with the basics and the philosophy behind the art of trading, you will then be reminded of the important signs to consider for your entry and exit strategies, including the risk tolerance and management you have set for yourself.
Look at concrete and solid data and stop listening to your emotions. Disregard your personal feelings and fears as it can worsen the situation and your condition even more.
It can be hard going back to your usual self. However, it is better to try renewing your focus for you to be able to overcome trader’s block. Once you finally succeeded in getting a hold for yourself, you can go back to your usual trading persona or even become better at it.
Read also: 6 Steps to Dealing with Losing Trades
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