Don't Let the Holiday Season Stress You Out: Stay Calm and Relaxed

During the holiday season, our personal obligations can be a little overwhelming. There may be parties to attend or you may have to find the time to buy presents for family and friends. Can this added stress impact your trading? It can, if you are not careful. It is vital to stay calm and relaxed while you get a read on the markets and execute trades. Successful traders have learned how to make trades in a carefree, relaxed, and focused manner. They don't put unnecessary pressure on themselves, stress themselves out, and then crack under the added stresses and strains. This is a little harder to do during the holiday season, however.

During the holiday season, our mental energy may be taxed to the limit. And when that happens, you may find it difficult to stay focused on the markets. It may be hard to concentrate. Your mind may wander, easily distracted by issues of the holiday season: "What is the weather going to be like when we need to drive to my parents house for dinner? I hope the weather isn't too bad. How busy is the mall? I don't want to stand in long lines again; I should have done my holiday shopping earlier." When you are distracted by stressful events outside the markets, even the slightest sign of a trading setback can make you feel uneasy. You may be more easily prone to frustration and anger. Continuing to trade under these conditions can lead to impulsive decisions. Implementing a trading plan, for example, requires a carefree, focused mindset. But if your limited psychological energy is depleted from all the stress you are experiencing, you will have little psychological energy left to devote to monitoring your trades.

If the holiday season is getting to you, it may be useful to rest. You might want to take a four-day weekend, or take the rest of the month off. But if you have to trade during the rest of the week or month, make sure you take frequent breaks to deal with pent-up background stress. Take small breaks; go for a walk and work off some of the tension that is building up. Since this time of year is stressful, it's also useful to take preventative measures to ensure that you aren't overly consumed with stress. Make sure you get plenty of sleep, avoid drinking caffeine, and exercise regularly. These steps will ensure that you have the mental stamina you need to survive through the holiday season. This time of year can be tough on your psyche, but if you take decisive steps to reduce some of the stress, you'll feel better and enjoy the season rather than feeling stressed out.

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