Don't Stress, Crypto Trader: Tips to Handle Trading Pressure
Checking the market and your crypto portfolio day and night? Many crypto traders are familiar with this situation. One moment prices are up and the next they plummet. The uncertainty can easily make you addicted to charts and stress you out.
You may not notice it but stress may impact your daily life. So, how to trade with less stress?
Academic research and surveys prove the point.
A survey by Harvard and Webster Universities reveals that 32% of traders reported “very high” or “extremely high” stress levels. Another study by the National Library of Medicine states that cryptocurrency traders have a lower quality of life, increased stress, and poorer sleep compared to their non-trading peers.
Common causes for crypto trading stress include:
On one hand, you can make transactions anytime you want; on the other hand, an always-open market may keep you alert all the time. Though you can set up crypto trading bots and automate some processes without the need to monitor the market yourself, you’d probably check the prices often out of curiosity or concern.
Isn’t this exaggerated?
We all experience stress from time to time.
Many medical studies, like this one, mention these points as the body's reaction to unusual situations, referring to it as the fight-or-flight response - a survival mechanism for humans and other mammals.
Short-term stress usually doesn’t have serious impacts. However, when stress occurs repeatedly over a long period, you may need to reconsider your lifestyle and approach to various events.
Chronic stress may cause sleep problems, headaches, increased depression, weight gain, lack of concentration, memory impairment, irritability, and social isolation.
As a result, you may feel exhausted, which can reduce your motivation and make trading less enjoyable. As the American Psychological Association states:
All these things can make you forget about sleep, eating healthy, and taking proper care of yourself. Plus, when you see relatable memes on community groups, you know you’re not alone.
Sometimes, the extreme stress may seem to be a natural part of crypto trading.
But there’s a better way.
The chances that you’ll be able to make the right decisions are higher when you’re more relaxed. While it would be a lie to say that trading with zero stress is possible, with some tips, you can surely reduce the pressure.
But getting a good rest is not only about hours.
Did it happen to you that you felt more dizzy after a longer time in bed? The reason is a disorder in your sleep patterns. To feel rested, you also need to have a proper sleep cycle, which involves going to bed and waking up at the same hours.
Sleep disorders can cause daytime sleepiness, fatigue, mood swings, poor functionality, and health problems.
Therefore, being productive at the expense of sleep is a myth. You’ll make better trading decisions when you’re well-rested. So, relax - you can’t do it all or predict the market correctly all the time, anyway.
Try to avoid impulsive decisions, and when something goes wrong, adopt a philosophical approach. There will always be missed opportunities and bad days. Even the most successful traders make mistakes, and each failure provides valuable insights into your experience.
If you zoom out even further, reflect on whether the trading decision significantly impacts your life. Regardless of the situation, you can likely turn things around.
Sometimes, you may feel confused and depressed without realizing why. In this situation, you are more likely to take bigger risks and let your emotions take the lead. Ask yourself if you have eaten and if your diet is healthy.
Also, pay attention to whether you have a habit of drinking coffee on an empty stomach and how much caffeine you consume.
More than 1,000 mg of daily caffeine intake may cause nervousness, jitteriness, insomnia, and a rapid heart rate. If you mainly snack and drink caffeine frequently, consider how these habits might affect your trading performance and overall well-being.
Whether you prefer a quick walk, a run, or hitting the gym, finding an activity you enjoy is a great way to feel calmer and happier. This can lead to better sleep and a more positive attitude when trading.Being physically active doesn’t have to be daunting. Start with small changes, like replacing coffee breaks with a quick workout or stretch, or taking the stairs instead of the elevator.
Keep in mind that the crypto market has its ups and downs, so think twice before placing your order. Only invest what you can afford to lose. Having some basic risk management strategies can help keep trading a bit less stressful. A simple way to do this is to set a budget and try to stick to it.
Take care and don’t forget to take the time to recharge.
Factoring In the Causes of Crypto Trading Stress
Overall, trading can be a hell of a stressful job. Traders make money based on making the right shots and constantly taking risks. This alone may be enough to cause anxiety and panic.
Academic research and surveys prove the point.
A survey by Harvard and Webster Universities reveals that 32% of traders reported “very high” or “extremely high” stress levels. Another study by the National Library of Medicine states that cryptocurrency traders have a lower quality of life, increased stress, and poorer sleep compared to their non-trading peers.
Common causes for crypto trading stress include:
- The Tension of Making a Profit
- The Pressure of Social Media and Peer Trading
- The Variety of Cryptos and Trading Strategies to Choose From
- 24/7 Open Market That Always Keeps You Alert
On one hand, you can make transactions anytime you want; on the other hand, an always-open market may keep you alert all the time. Though you can set up crypto trading bots and automate some processes without the need to monitor the market yourself, you’d probably check the prices often out of curiosity or concern.
Crypto trader meme. Source: reddit.com
Stress Ain’t a Joke: How Trading Stress Can Impact Your Physical and Mental Health
After some time of intense crypto trading, you may find yourself burnt out. Stress hits you like a freight train. The anxiety of keeping up with market trends and balancing losses can impact both your body and mental health.
Isn’t this exaggerated?
We all experience stress from time to time.
That’s true; we all experience stress on some level, whether it’s at work, driving, public speaking, or managing personal relationships. But dealing with high stress daily is different.
At least a few of these things happen during stress:
- Your heart pounds
- Your muscles tense
- Your breath quickens
- You may feel a headache or chest pain
Short-term stress usually doesn’t have serious impacts. However, when stress occurs repeatedly over a long period, you may need to reconsider your lifestyle and approach to various events.
Chronic stress may cause sleep problems, headaches, increased depression, weight gain, lack of concentration, memory impairment, irritability, and social isolation.
As a result, you may feel exhausted, which can reduce your motivation and make trading less enjoyable. As the American Psychological Association states:
The longer the stress lasts, the worse it is for both your mind and body.
How to Cope With Trading Stress
When you really enjoy something you do, you may not even realize that it stresses you out. In a crypto trader’s life, monitoring the market, analyzing charts, creating strategies, and celebrating wins can be those exciting moments.
All these things can make you forget about sleep, eating healthy, and taking proper care of yourself. Plus, when you see relatable memes on community groups, you know you’re not alone.
Sometimes, the extreme stress may seem to be a natural part of crypto trading.
But there’s a better way.
The chances that you’ll be able to make the right decisions are higher when you’re more relaxed. While it would be a lie to say that trading with zero stress is possible, with some tips, you can surely reduce the pressure.
Rafiki meditating. Source: mekeameme.org
- Get Enough Sleep: You Can’t Control Everything
But getting a good rest is not only about hours.
Did it happen to you that you felt more dizzy after a longer time in bed? The reason is a disorder in your sleep patterns. To feel rested, you also need to have a proper sleep cycle, which involves going to bed and waking up at the same hours.
Sleep disorders can cause daytime sleepiness, fatigue, mood swings, poor functionality, and health problems.
Therefore, being productive at the expense of sleep is a myth. You’ll make better trading decisions when you’re well-rested. So, relax - you can’t do it all or predict the market correctly all the time, anyway.
- Zoom Out and Focus on the Long-Term View
Try to avoid impulsive decisions, and when something goes wrong, adopt a philosophical approach. There will always be missed opportunities and bad days. Even the most successful traders make mistakes, and each failure provides valuable insights into your experience.
If you zoom out even further, reflect on whether the trading decision significantly impacts your life. Regardless of the situation, you can likely turn things around.
- Avoid Empty Stomach and Caffeine Overuse
Sometimes, you may feel confused and depressed without realizing why. In this situation, you are more likely to take bigger risks and let your emotions take the lead. Ask yourself if you have eaten and if your diet is healthy.
Also, pay attention to whether you have a habit of drinking coffee on an empty stomach and how much caffeine you consume.
More than 1,000 mg of daily caffeine intake may cause nervousness, jitteriness, insomnia, and a rapid heart rate. If you mainly snack and drink caffeine frequently, consider how these habits might affect your trading performance and overall well-being.
- Find Your Way to Stay Physically Active
Whether you prefer a quick walk, a run, or hitting the gym, finding an activity you enjoy is a great way to feel calmer and happier. This can lead to better sleep and a more positive attitude when trading.Being physically active doesn’t have to be daunting. Start with small changes, like replacing coffee breaks with a quick workout or stretch, or taking the stairs instead of the elevator.
- Don’t Invest Too Much in Crypto or Anything Else
Keep in mind that the crypto market has its ups and downs, so think twice before placing your order. Only invest what you can afford to lose. Having some basic risk management strategies can help keep trading a bit less stressful. A simple way to do this is to set a budget and try to stick to it.
- Don’t Ignore What Your Body Tries to Tell You
Take care and don’t forget to take the time to recharge.
Related: 7 Crypto Trading Tips for Beginners
FAQ
- Why Crypto Trading Can Be Stressful?
- What Is a Crypto Trader’s Job?
- How Can Stress Impact Your Daily Life?
- How to Deal with Crypto Trading Stress?
Anahit Avetisyan
Author
Web3 writer and crypto HODLer with a keen interest in market trends and recent technologies.
