Ever heard the term ‘trader’s block’?
If not, there’s no doubt that you’ve heard the term writer’s block at some point in your life.
You know, the condition where an author loses their inspiration and therefore ability to produce any new work?
Writer’s blocks vary in intensity and whilst some last a few minutes or hours, there are some extreme cases out there where the writer is experiencing the writer’s block for YEARS.
And the truth is that it can happen to the best of writers out there, like J.K. Rowling. She was open about her struggle with the writer’s block when she was writing Harry Potter and the Chamber of Secrets. She said she was unable to write for over five weeks!
But it’s not just authors and writers that can suffer this. It can crawl up on anybody in different shapes and forms.
For example, you know the feeling when you’re trying to complete some work but your mind goes completely blank? That’s a form of writer’s block.
So how is this relevant to trading?
Well, just like writers, traders get these blocks too. They’re called Trader’s blocks.
Forex traders blocks normally occur after a significant win or a significant loss, and can be triggered by various reasons. To mention some, traders feel like they will never be able to replicate their last successful trade, or they fear another huge loss.
The truth is, when the trader’s block crawls up on you, you’ll feel paralysed, riddled with fear and unable to act. You’ll find yourself sitting there waiting for the perfect trade that doesn’t exist.
If this ever happens to you, it’s important you remember that you’re not alone and there’s lots of other traders out there going through the same thing.
Don’t automatically think the worst. Instead, take some time for yourself, relax and try not let it worry you too much.
Let’s go over some tips that will help you deal with the trader’s block when it comes.
Before we dive into the best ways of dealing with the block, let me quickly mention what NOT to do.
The single, most important thing that you should avoid if you’re dealing with the trader’s block is to force it.
Don’t place trades just for the sake of it, regardless of market condition or analysing the market.
Yes, technically it would mean you are trading again but really, you’d just be gambling.
This kind of behaviour will only cause more harm and lead you to more losses.
Now that we got the worst case scenario out the way, let’s talk solutions.
Seriously, just take a breather. It might be just what you need!
Switch the computer off and take some time for yourself. Do the things you like to do.
It doesn’t matter whether it is taking a relaxing bath, doing a puzzle, playing video games or just taking a nap.
You know what works best for you to clear your mind. The goal is to distract yourself!
Sometimes the best thing to do is to reset and restart.
Perhaps you need a new strategy? Or maybe your old strategy needs a refresh?
Whichever option it may be, sometimes re-doing and re-learning is the right way to go on about things.
Really, just take your time to review your strategy in its entirety.
And if you feel like you can make it better? Adjust it based on recent experience.
It will help you get your confidence back and remind you of things you have forgotten about.
Now that you’ve cleared your mind and went back to the basics, it’s time to look at the charts again.
Spend some time analysing the market and remember all the steps in your strategy.
Once you’re confident you see an opportunity, take it!
Push yourself to place that trade.
Even if it’s a small one!
It may be hard at first but eventually, these small steps will make big difference in the way you approach trading.
Once you get a routine going, you will be right back to your good ol’ self!