TraderIn the world of trading, it can be easy to go through a lot of stress and develop certain psychological problems along the way. One of the most common of such problems that traders have to deal with would be performance anxiety. Performance anxiety is not just a problem affecting traders but can also affect athletes and actors. Performance anxiety usually happens when a trader becomes more aware of the performance, especially the outcome, in such a way that it begins to interfere with the actual act of performing.

Performance anxiety can easily lend itself into the any trading day. It usually affects traders at a time when they either have to go through high degrees of risk or aiming to do better than their previous performance. The skill of how a trader performs can sometimes work automatically especially through experience. But there are times that can make a trader become more aware and scrutinize every action being done in trying to focus the eventual outcome of the performance. This results in the trader trying to have a conscious control over an activity that has been previously honed to automatic mode. What happens is that there is a disruption to the actual performance.

A prime example of performance anxiety can be likened to a basketball player on the free throw line about to make crucial free throws that can win the game. Becoming aware of the very importance of making the free throws, the player may aim at the ring but does not deliver the shot in his natural stroke. For traders, it can happen when one overthinks a trade and it doesn’t set up exactly as planned.

There are many things that can cause performance anxiety in trading. A series of poor trades that creates a losing streak in the mind of a trader can be one. Another can be experiencing situations that a trader did not expect to happen. Being pressured to impress everyone as well as a series of other pressures may affect the mindset of a trader that may lead to performance anxiety. These circumstances can cause certain disruptions to a traders state of mind that can sometimes be exhibited by a change in moods.

Traders should be aware that a number of trading problems can be a direct effect of performance anxiety. Instead of trading performance flowing naturally as usual, certain disruptions in thinking due to increased risk or pressure can allow a trader to perform poorly. Performance anxiety does not just happen when experiencing market losses. Some traders may suffer from performance anxiety even when enjoying market success.

In the same way, perfectionism can lead traders to experience performance anxiety. Traders depend on their achievements to determine their success. Sometimes, this can lead traders to set goals that may be difficult to reach. Trying to achieve such lofty goals can add some tension on the trader that may affect actual trading performance and may bring on performance anxiety.