When the US Market Dow Jones Industrial falls 700 points in a single day, what would you feel, what would you do? Everything just comes down crashing on your shoulders, you just bought all in the previous day and now your stocks are plunging 20% down. Stock market stress has just overwhelmed you. Stock market stress is part of being a trader/investor. There are ways to reduce stock market stress, and I will be discussing some simple ways to reduce it.

In two years of stock market trading, the most stressful experience was when I held unto a stock for a month with just a hunch that something was brewing with it back then. The stock went ahead to again more than 100% in several weeks. But the emotional stress had taken a toll as I had sleepless nights and restlessness. I rather have a good night’s sleep than to undergo this situation ever again. I want to share with you my 8 simple ways of reducing stock market stress.

8 Simple Ways to Reduce Stock Market Stress

Do not watch Bloomberg, CNN, CNBC, or any stock news channel for a lengthy time. All the news will disrupt your rythm. Remember that the stock market is all about demand and supply, simply put. You do not need to listen to all those reporters, who themselves, I bet, are not even investors or traders. Being informed is good but being too paranoid with news data is not needed.

Do listen only to yourself. There will be a lot of rumors in the grapevine regarding inside information on certain stocks. Take these with a grain of salt. In fact, treat these as humor only. You are the only one who controls your investments so you should do your own homework. You will be responsible for all the sound decisions you make so you have prepare yourself very well and not follow rumors floating.

Get enough sleep every night. Sleeping 6 – 8 hours a night would give you a big advantage on how you respond and react to market changes during the day compared to sleeping less than 5 hours a day. Having a good night’s rest allows you to be fresh and gives you a sharp mind to face not only the market challenges but everyday life as well.

Have a plan. Have an investment methodology that caters to your emotional, spiritual and risk appetite. Develop a methodology that works for you. Investing and trading according to your working methodically will help you generate wealth and minimize your losses, thus reducing prolonged stress. Many people get stuck with bad stocks because they are confident with themselves, do not let this happen to you.

Eat healthy foods. Trading makes use a lot of mental energy and puts stress on your body. Keep your body well balanced with what you eat. I always eat fresh fruits everyday usually apple, orange, or kiwi. Try not to make a habit of eating junk foods and replace it with healthy alternatives like fruits or oat crackers. Why not even make your favorite fresh fruit juice/shake while the market is open, it gives you a break from the mental concentration and allows your brain to soothe itself.

Surround yourself with optimistic individuals. Being with people who are stressed and/or negative vibes would just give you more stress to deal with. Instead, talk to your trader/investor friends who are optimistic and give sound advice where you can even learn with.

Learn to accept your losses. No trader can win all the time in the stock market. If you can maximize your profits and minimize greatly your losses then you will find yourself generating wealth in no time. One of the hardest to learn and one of the biggest stress inducing aspect are the losses from the stock market. Set on your methodology an acceptable loss percentage rate and follow it. I set mine at 5%. Whenever I already lost 5% in a stock that I bought, I immediately accept the loss and sell it. Protecting capital should be the priority. In the stock market, you should accept humility in what you do as the price is king and you are just following it.

Do not jump the gun. Stop, think, then act. Three simple things you should remember to avoid stock market stress in the first place. Before you do anything, stop what your instinct and emotions are telling you. Think about the situation on the possible risks and rewards you are entering into. Then act upon your best judgment what you have to do in order to minimize loss and maximize gain.