Trading is not a job with a fixed salary; it depends on your abilities. This profession is tough but not horrible. All traders are not lucky enough to fulfill their dreams. They want to earn profit but need to be more successful. Some common mistakes that every trader commits are, averaging up and down of position, not doing much research, overtrading, take decisions based on others’ opinions. These create a remarkable blunder and make traders depressed. Many people can ask a question like:
Can trading make you depressed?
Yes, trading makes you depressed when your hard work doesn’t pay off. When trading washes away all your money, you can not meet your daily lifestyle and your day-to-day living expenses. Your debt increase day by day. You may lose your concentration and spoil all of your energy.
Fluctuation in the market can trigger many mental health issues like anxiety, pressure, and stress.
In trading, 90% of traders lose money, but over time, they understand the tricks and use it in their field. Every successful trader needs to get out of this critical condition. This helping hand may lead them to fix their mistakes.
Let’s see what conditions and mistakes make a trader depressed.
Why are Many Traders Depressed and Frustrated
‘’I am losing money’’
‘’I am losing time after time’’
‘’Today is another day of losing’’
‘’My account never makes money’’
‘Everything I do is bad’’
‘’My equity curves look awful’’
You must have heard these sentences repeatedly for the last six months. All these represent the sad and stressed feelings of traders who try to survive in these difficult situations but cannot control them.
These conditions create a stressed generation of traders. Yes, Trading makes them stressed and tight. They try, but every time new crises make their effort under pressure. The tension of unproductive trade leaves them alone.
How Dangerous Is Trading for Your Health
Stress is a necessary evil for traders. Stress clings to the trader when he starts and its levels go ups and down during the fluctuation of the market. Stress is always a life companion but not a good one.
When chronic stress becomes a part of life, it becomes extremely dangerous for sedentary traders. Traders mostly sit passively while their brains are active. The volatile market gives him a jerk and makes him depressed. Here we discuss briefly how much the brain is affected by stress.
1. Stress Makes the Brain Inactive and Dull
Stress wipes out all our energy and vigor in life. A depressed person could not work easily and gets exhausted soon. If the market crash due to some crises, trader lose their heart.
2. Stress Decreases the Memory
Stress shrinks the size of the hippocampus. This part of the brain is related to memory forming. Man’s cortisol level is also high due to stress which reduces attention span, learning, and concentration. All these things are necessary for a successful trader.
3. Stress Leads you to Bad Decisions
Recent studies show that stress is a significant cause of 90% of wrong decisions. During stress, our heartbeat is faster and it signals to the prefrontal part of the brain. This part of the brain is directly related to the thought-processing and decision-making process. It temporarily destroys the ability of thinking and shifts the brain toward emotional and habitual instinct. It takes him away from realistic consideration, which is why all bad decisions were made at that time.
4. Reduce immunity
Prolonged stress lowers our immune system. Due to weak immune systems, we can easily fall victim to diseases. Heart disease and high blood pressure is also often caused by stress. Avoid stress if you want a long and healthy life.
Can Computer Screen, Mouse, and Key Board Stress You
Most traders sit and work for many many hours. Initially, their health is not affected at all. But with time, their mental and physical health is seriously influenced. Computer tools like mouse touch screen and keyboard seem too innocent but excessive use of these causes many syndromes, like Carpal Tunnel Syndrom, Tenosynovitis, Trigger finger Syndrome, etc.
Constant use of a combination of mouse and keyboard results in postural stress. Prolonged sitting posture on an office chair with one neck and back has resulted in serious kind of back injury, and neck and shoulder muscle cramping.
When The Stock Market Got You Down
The world had changed from 11 September. Earth has seen many changes during these 24 years. From the war on terrorism to corona pandemic every market faces so many ups and down. The last few years are shaking the stock market. Traders are also down with the crash of the market. In 2022 high inflation, Ukraine War, and increases interest rates also contribute to the stock market’s downfall.
Yes, all these factors have distress effects on traders’ physical and mental health. Depression, anxiety, and other mental health issues increase manyfold in this decade.
Day Trading Anxiety Reasons [15 causes of dismay]
Depression is a type of mood disorder. This mental condition appears when a person feels deeply sad, and hopeless. Man loses energy. Day traders face this risk. This feeling becomes more intense if he lost all of his hard earn money in trading. Here we hope to uncover some main reasons that fall a trader into the pit of anxiety.
- Unrealistic goals.
- Success threat.
- Comparison with other occupations
- Lack of self-confidence(self-doubt).
- Impulsive and trading addiction.
- Find no edge.
- Fear that trade might be lost before taking it.
- Imposter syndrome.
- Incapability to focus because of the burden.
- Breaking your limitations.
- Cannot control risk management.
- Not cutting losers and using hope for a come-back.
- Traders are mostly impatient when start trading. This is a big hurdle to the desired success.
- Uneasy atmosphere of office or workplace.
- Lack of exercise and entertainment due to overwork.
All these remarks are collected from different traders on social media that indicate that trading creates stress and fear of loss. But it would help if you never disappointed because every bad day is followed by good days.
Trading can be a very exciting and exhilarating experience, but it can also be dangerous and lead to a sense of euphoria or over-exposure. If you are not careful, trading can quickly become addictive and lead to a cycle of depression and despair. Hopefully, here after explored 15 reasons why trading can lead to a feeling of despair and depression. We hope that by reading and sharing this information, you will be able to avoid these negative consequences and enjoy the trading process to the fullest.