Saturday, March 13, 2010

Challenges in Pulling the Trigger on Trades: Overcoming Performance Anxiety

Here's a worthwhile feature from the Trader Interviews site in which Tim Bourquin interviewed three trading psychologists--myself, Doug Hirschhorn, and Gary Dayton--on the topic of how to overcome difficulties in pulling the trigger on trades. Thanks to Tim for the opportunity to participate.

As a rule, inhibition is a function of performance anxiety: concerns about the outcome of performance interferes with the act of performing. This is common in public speaking, test taking, and athletics. Focusing too much on how things will turn out makes it difficult to immerse yourself in the act of getting there.

The key to overcoming performance pressure is to remain process focused. By keeping attention on the process of performing, you can let outcomes take care of themselves. Wanting to make money is an excellent motivation; *needing* to make money is an excellent saboteur of performance.

Below are some posts that address the challenges of performance anxiety:

* Performance Anxiety as the Most Common Emotional Problem Traders Face

* Techniques for Overcoming Performance Anxiety

* How Secondary Anxiety Impacts Trading