Emini Trading Systems – Here are 13 ways to reduce the stress of day trading

  1. Trade on a higher timeframe. Market prices are noisy. The lower the time frame, the more noise. Noise is like uncertainty to me. More uncertainty leads to more stress. You may want to consider trading on a higher timeframe where there is less price noise; less noise, less uncertainty, less stress.

  2. Use stop loss and limit orders. One mistake traders make is not minimizing their losses. By using stop-loss and limit orders, you will reduce the stress of taking large losses and making real-time trading decisions.

  3. Have predefined exit points and ACT on them. Not only must a trader know what the profit target is BEFORE placing a trade, they must ACT on it when prices are reached.

  4. Have predefined entry points and ACT on them. Not only must a trader know what the entry price is BEFORE the trade is made, they must ACT on it once prices are reached.

  5. Are you a discretionary trader or a system trader? I believe that discretionary traders should withstand more stress in trading markets. This is because they have to make a decision. Making real-time trading decisions creates a certain amount of stress. However, system traders usually do not need to make an entry or exit decision. It is already programmed into the system.

  6. The size of your position in the next trade will also create stress. How do you decide on trade size? Understanding volatility and having a way to quantify it will allow you to adjust your position size accordingly. For example, if market volatility has increased, it may be wise to reduce your position size, and vice versa.

  7. Don’t trade news releases. I trade SP500 emini market. This market is considered more volatile compared to other markets. However, when the news comes out, the market will react. You might think that the market will react a certain way, and you might be right, but the problem is that the market can overreact to news. This can lead to losses because your stops will be hit; just before you are right. Trading news is very difficult and stressful.

  8. Do you renegotiate? Studies have shown that increased trade does not necessarily lead to higher profits. This usually results in higher risk and losses. How many markets do you trade? You may be trading too many markets and creating unnecessary stress. Sometimes it is better to specialize than to generalize. Reducing the number of markets you trade will definitely reduce the amount of stress you feel. Perhaps an analysis of your trades will show that you are more profitable in one market than another.

  9. Like how many markets do you trade, how many securities do you trade? Are you watching too many stocks? Do you have too many positions at once? Review these ideas.

  10. Do you have a disciplined money management plan or money management system that you use? If not, how do you determine position size? Perhaps using a disciplined money management system will reduce the stress that comes with position size uncertainty.

  11. Did you do your homework? Are you trading a proven and historically proven system? If so, it is easier to trade probabilities and easier to deal with losses when they occur.

  12. Eat well, sleep well and exercise. Stress comes from many sources and can be reduced by eating right, sleeping well, and exercising. Maybe meditation can be helpful.

  13. Take a deep look at yourself and see if you have any addictions or problems. Drugs and alcohol can affect stress levels. Perhaps you have some internal situations or areas of your life that need attention. It needs to be worked out. Ask for help if you need it.

Thank you for reading this. I hope this helps. Feel free to contact me.

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