Financial Stress May Hit Your Brain and Wallet

Discussion in 'Psychology' started by startraitor, Aug 30, 2013.

  1. I guess everybody is different.
    When trading, I seem to decrease my IQ after spikes in p&l
  2. We are all different but I think it is safe to say that it is a normal reaction that when someone is in financial distress everything else follows. However, our differences come in when it comes to handling the situation. At the end of the day it will be dependent on how we handle the situation.
  3. Pipflow


    Well i would like to say that it is always best for the traders to invest the money which they can afford to lose, so that it does not have drastic effect on their brain or wallet.
  4. Of course trading stress would bleed into other facets of life. It is natural, especially if it is your only source of income.

    That's why portfolio diversification is so important. Set up an emergency fund, retirement fund, pad some savings in the bank so that short term draw-downs are less likely to affect your life.

    Trading full-time means just as much stress management as it does money management. One day way to deal with it is to make sure your quality of life will be the same when trading is down versus up. As long as it all evens out in the end.
  5. I'm getting the same thing as well unfortunately.