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Wed, 01st June 2016

Anirudh Sethi Report

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Archives of “stress” Tag

SGX NIFTY -Below 8585….Sharp Intraday PANIC Not Ruled out.

SGX--1008

Traders can do themselves a huge favor by regularly engaging in stress reduction efforts. Some of these include regular exercise, good sleep habits, proper nutrition, leading a balanced life with interests outside of trading, stable personal relationships, meditation, biofeedback, and others.

The main idea is to DO SOMETHING (the more the better) to inoculate oneself from extreme stress responses. Reading about it here and elsewhere is a fine start, but the results your looking for won’t come until you actually do something, and commit to it.Physical exercise is an excellent stress reliever. Getting the right amount of good quality sleep is another. Also good social support and having healthy relationships with others.Alcohol may seem to treat the symptoms of stress, but if over used it can have a negative impact on us biologically and psychologically.

Last Close : 8599

All Eyes on 8585  level.Decisive Break and stays below will take to 8549——————8537 level.

Yes ,Now If Breaks 8537 & sustains for 15-20 minutes will create PANIC SELLING upto 8501 in hrs only.

Hurdle at 8666-8689.

14th Trading session -Watch For UNEXPECTED LEVEL.

Three Consecutive close above 8699+ Weekly close will take to 8880—-8939 level.

More Details to our Subscribers ,Updated at 19:02/09th August/Baroda/India

Three Steps In Overcoming Trading Fears

1)  Slow Down – That fight or flight response speeds us up.  Under the influence of an adrenaline rush, our thoughts race, our bodies tense, and blood flows shift to the motor areas of our brains.  When we sit still, breathe deeply and slowly, and focus our attention, we slow down the body’s fight or fight responses.  Cooling down when events heat up is a great way to stay mindful and planned.  The best way to cool panicky feelings is to keep the body in a chilled state incompatible with those feelings.

2) Treat Emotions As Information – Your emotions are either telling you about a genuine threat in the world or a perceived one.  The key is sorting those two out.  If you can stay mindful and use the emotion to trigger an analysis of the situation, you can either appropriately act on the threat or remind yourself that your reaction is more to the past than the present.  When you treat emotions as information, you go into information processing mode, not blind action mode.

3)  Rehearse To Perfection – Too often we step onto life’s stage without proper rehearsal.  Any situation that generates a threat response can be mentally rehearsed through vivid visualization.  If we can keep ourselves chilled when we imagine stressful situations and visualize ourselves acting constructively, we create new mind-body connections that eventually carry over to real life.  If you conquer a fear 20 times in vivid mental rehearsals, it’s much harder to overreact to the 21st situation that occurs in real life.

The 10 Signs You Might Have a Fear of Failure

The following are not official diagnostics but if you feel these criteria are very characteristic of you (‘very’ being an important distinguishing marker as we all feel these things to some extent), you might want to examine this issue further, either by doing more reading about it or talking to a mental health professional.

1. Failing makes you worry about what other people think about you.

2. Failing makes you worry about your ability to pursue the future you desire.

3. Failing makes you worry that people will lose interest in you.

4. Failing makes you worry about how smart or capable you are.

5. Failing makes you worry about disappointing people whose opinion you value.

6. You tend to tell people beforehand that you don’t expect to succeed in order to lower their expectations.

7. Once you fail at something you have trouble imagining what you could have done differently to succeed.

8. You often get last minute headaches, stomachaches, or other physical symptoms that prevent you from completing your preparation.

9. You often get distracted by tasks that prevent you from completing your preparation that in hindsight were not as urgent as they seemed at the time.

10. You tend to procrastinate and ‘run out of time’ to complete you preparation adequately 

Goals reduce your current happiness

When you’re working toward a goal, you are essentially saying, “I’m not good enough yet, but I will be when I reach my goal.”

The problem with this mindset is that you’re teaching yourself to always put happiness and success off until the next milestone is achieved. “Once I reach my goal, then I’ll be happy. Once I achieve my goal, then I’ll be successful.”

SOLUTION: Commit to a process, not a goal.

Market volatility and cortisol levels in traders

The notion that humans are Homo economicus, rational economic decision makers, has taken some serious hits ever since people bought more than 1.5 million Pet Rocks in the 1970s. Research in behavioral economics shows that we are typically more generous in economic games than logic would predict, that we will pay to spitefully punish freeloaders and that we tend to make rapid emotional decisions—and then struggle to rationalize them. A new study adds to this theme by showing how a class of stress hormones can distort decision-making in a setting resembling the stock market.

In a splashy, much-discussed paper published in 2008 in the Proceedings of the National Academy of Science, John Coates and Joe Herbert of Cambridge University examined the levels of various hormones in male floor traders at the London stock market over the course of eight days of work. They wanted to see if hormone patterns correlated at all with how the market was doing and/or with the trader’s own market performance. (Dr. Coates, it is worth adding, had spent his errant youth working as a trader atGoldman Sachs and Deutsche Bank, before being born again as a neuroscientist.)

One of their key findings concerned cortisol (aka hydrocortisone, part of a class of adrenal steroid hormones known as glucocorticoids). Stress spurs cortisol secretions. If you’re stressed like a normal mammal, running from a predator, cortisol helps to save your life. But chronic psychological stress—a human specialty—elevates long-term cortisol levels, which increases the risks of stress-related diseases.

Unavoidable Disappointment

If you’re trading for emotional satisfaction, you’re bound to have lots of problems and continue to struggle, for two reasons. First, often that what feels good is often the wrong thing to do. Second, the game of trading, and it is a game in many respects, involves being disappointed fairly often.

Even for profitable traders a certain number of trades will lose money, and even the winners don’t always work perfectly or match your exact expectations.

As a trader, it’s impossible to avoid disappointment, not every trade is going to work. You get stopped out and then see the trade go on to work without you, or you hesitate and miss the move, or you exit early to book profits and watch the move continue without you.  When you think about it, trading involves a lot of disappointment. I cannot think of any other job that involves disappointment on such a regular basis. Even the most successful traders experience this. No way to escape it.

When you experience a lot of disappointment you’re going to experience a high degree of stress. And when stress overwhelms you…and by the way, stress can masquerade as performance anxiety or pressure to succeed, the emotional part of your brain will run right over the logical analytical part of your brain.  You’ll know when that happens because that’s when your rules go out the window or you veer from your plan and you take a revenge trade or an impulse trade or you freeze up and hesitate.

How bear markets affect our decision making

READ THIS NOWAs of this Friday, the S&P 500 has gone 980 days without a 10% decline, according to Birinyi Associates, the fifth-longest such stretch on record. This past week’s nervousness, set off by the insurgency in Iraq and the surprise defeat of U.S. Rep. Eric Cantor, is thus the perfect pretext for investors to think about what they will do when the market takes a serious beating.

For, sooner or later, it surely will—and those investors who have honestly prepared for it will stand the best chance of surviving unscathed. In a downturn, you won’t be the same investor that you are now—unless you rely on rules and procedures, rather than willpower alone, to regulate your behavior.

New research shows that the kind of stress brought on by a collapsing stock market fundamentally changes how people make financial decisions.

4 Steps to Changing Your Bad Trading Habits

1. Understand the benefit of change. First, ask yourself if you need to change. Then, ask yourself what you need to change. Identify your current habits and ponder the benefits of changing them. Perhaps while trading you are feeling negative emotions such as stress, anxiety, temptation, or frustration. And ultimately, these emotions cause you to make poor, impulsive and self-destructive decisions. Write down what would happen if you were no longer feeling such negative emotions. That is, what would happen if you were able to remain calm and clear-headed while trading?

2. Dissect the proposed change and benefits. Find as many holes in the prospective change as you can. Don’t just convince yourself that things will become better if you change. Make sure the grass actually is greener on the other side of the fence. Be clear about what you want to change and how you will go about it. Write down the benefits that will take place if you do indeed change.

3. Recognize the situation that triggers your self-destructive action. Write down those all-too-familiar conditions, or circumstances, that lend themselves to activating negativity within you (e.g., all the things done, or said, that push your buttons). Also, write down how you are going to consciously recognize them during the day as they happen. Now, next to each item, write down what systems and processes you will implement to avoid letting that situation become emotional. Read More 

A Psychological Checklist for Traders

Here is a checklist that might be useful for self-evaluation:

1) Have you experienced one or more recent large losses in markets that shook you emotionally?

2) Have you experienced a recent painful loss in your personal life that has left you feeling more vulnerable in your finances and/or your personal sense of security?

3) Have you experienced a recent threat to personal safety that shook you emotionally, such as a violent attack or a serious accident?

4) Do you find yourself emotionally “overreacting” to what should be normal trading stresses and losses? Are you experiencing significant anxiety, frustration, anger, or depressed feelings when trades don’t work out?

5) Do you find yourself “overreacting” in your trading behaviors during what should be times of normal stress? Are you freezing up and not acting on your ideas or impulsively lurching into trades after losing periods in markets?

6) Do you look back on your trading and feel confusion, shame, or puzzlement over actions that you took that run completely contrary to your plans for the day?

7) Have you tried to reduce your emotional and/or behavioral reactivity to markets, only to see the same destructive patterns return during times of stress? Read More 

1+11 Reasons Why Traders Fail

  1. They have inadequate capitalization.
  2. They are using someone else’s system.
  3. They lack knowledge of the system’s performance.
  4. They are unable to sit through flat periods or drawdowns.
  5. They are unable to handle stress.
  6. They lack commitment.
  7. They experience drawdowns that are greater than their hypothetical testing.
  8. They override the system’s signals.
  9. Their ego prevails.
  10. Their system is overoptimized; they make additional rules to take out losing trades.
  11. They lack parameters for spike performance in markets.
  12. They lack diversification between systems and/or markets.