Is Online Trading Exhausting? Yes, But There's a Solution

Online trading, as novices quickly learn, is not a game. It's not an easy opportunity to make money. It's certainly not a walk in the park. Obviously, some brokers or alleged trainers have an easy time proposing online trading in these terms, but this incorrect positioning (bordering on fraud) is to the detriment of novice traders. Therefore, if you're starting to trade online or plan to pursue a career in this direction, internalize this truth as soon as possible: online trading is a demanding activity from many points of view and should be approached as such. In this article, we tackle the topic from different angles, explaining why online trading is tiring and proposing some solutions to make it less challenging, with a view to increasing performance (first and foremost psychophysical) and, therefore, profits.

Why trading is tiring

Trading is tiring from many perspectives: mental, physical, and emotional. The reason it's mentally exhausting is obvious. It's primarily a cerebral activity, if not an intellectual one. You need to study, analyze, and decide. All actions that put a strain on the mind, and to a greater extent than any "desk job." If you're a typical employee and feel mentally tired, regardless of the work you do, know that a trader has it much worse than you. Online trading is also physically exhausting. This is less intuitive. Why should an intellectual activity affect the body? After all, you remain still in front of the screen. Well, that's a hasty conclusion. First of all, because mind and body are interdependent, and in a sense, those who get mentally tired eventually experience a certain physical exhaustion. Secondly, it's a matter of concentration and time spent. An average trader who wants to seize all the opportunities of the day finds himself having to stay focused almost to the limit of his abilities for several hours. This eventually wears you out, and a lot. Finally, online trading is emotionally draining. This is an aspect that is also emerging for the masses but has not yet gained its due space. The trader is a man, regardless of his level of competence. As such, he has to deal with his psychological sphere, which during trading activity, especially some phases, is completely disrupted. It's a real problem that requires careful management, with a degree of attention similar to, if not greater than, that paid to technical issues. Online trading is mentally, physically, and emotionally tiring. But... Why? What are the characteristics of the market that make investing activity so tiring? Here are some of them. The market is complex. Trading, even in its early stages, has always been complicated. Imagine today, when it's frequented by hundreds of thousands, if not millions, of people and organizations. This has led to a complication of the dynamics that necessarily have to be managed. The market is only partly rational. This is a truth also internalized by the collective imagination. Phenomena such as the famous "panic in the markets" are now part of common sense. As much as journalistic narratives exaggerate certain events, the reality is just that: investors often act out of fear, and when they do it "all together," the consequences are there for all to see. Competition is very high. Online trading is frequented by such a variety and quantity of investors that competition is difficult to manage. Among retail, banking, and institutional traders, there's never a shortage of challenges. The risk is that small fish get devoured by big fish... Or even just medium-sized fish. The market is asymmetric. This is a direct consequence. Traders don't all start from the same conditions. This is obvious when considering the economic side. It's a bit less obvious when considering the issue of information. Without delving into the field of Insider Trading, some "big" investors have a much broader and deeper view than the small retail trader. Therefore, they play with many more weapons, net of the (sometimes) colossal economic disparities.

The most tiring trading styles

Online trading is tiring; this is now established. However, not all traders "suffer" in the same way. While a certain dose of stress (mental, physical, emotional) spares no one, some categories of investors are forced to bear a much heavier load. Below we list trading styles and approaches from least tiring to most tiring. Long-term trading. It's simply the style that, regardless of the directional approach, involves holding positions for weeks or even months. It's usually preceded by careful analysis, which can take a long time, followed by opening the position and closing it according to expected terms. The degree of stress is still high but mitigated by the dilation of operations. Swing trading. This approach is similar to the previous one, with one important difference: the time horizon is determined by the trend. Therefore, the constraints are greater, hence a greater stress load. Day Trading. This approach is already very tiring from all points of view. You start to "suffer" a lot. Also because everything is condensed into a few hours: analysis, signal gathering, decisions, opening, and closing. Generally, only those who already have some experience should approach Day Trading. Not so much for a technical issue, which still plays a fundamental role, but for a question of psychological stamina. Scalping. It's the most tiring approach of all. This term refers to the trading style that consists of the frenetic opening and closing of positions. The horizon is counted in minutes, very often in tens of seconds. It aims to exploit even the slightest volatility and thus produce small but numerous gains. It's stressful to the extreme for one simple reason: the decision-making space is minimal. In short, scalpers trade under extreme pressure. Therefore, it is not recommended for those who do not have a long experience behind them.

How to solve the problem of fatigue

A clarification: by "solving the problem," we do not mean the elimination of the "fatigue" element or stress, if you will. Unfortunately, given the structure and dynamics of online trading, this is not possible. Rather, it means wisely managing the fatigue load so that it does not excessively affect the results. Here are some easily actionable tips.

Recharge

The issue is very simple. Getting tired is okay; man is made to endure. Serious problems arise when you approach burnout or reach it. There, the dangers, both for health and results, become very large. So, adopt this simple advice: every now and then, unplug. Sure, some find it difficult to suspend activity. It happens especially to addicts, but also to those who simply, by doing the math, realize how much they could lose without trading. However, you should consider breaks as an investment: at first, you will certainly miss opportunities, but you will gain in effectiveness and, therefore, in results once you resume activity.

Recalibrate rhythms

If you experience extreme fatigue, the problem may lie at the root. That is, it's possible that you have chosen an approach that does not suit your character, your way of working. Even in this case, the solution, at least in theory, is at hand: change your horizon. If you are a Day Trader, you could switch to Swing, for example. This still involves a significant initial effort. After all, it's about changing your approach and, therefore, your strategy. Even in this case, however, the results in the medium term can be seen. The advice is to try it if you feel the load of stress you have to endure as unnatural.

Carve out time for yourself

This is advice that no one ever gives. Also because, at least in theory, it has little to do with trading. The best way to manage pressure, stress, and trading fatigue is to confine the analysis and investment activity within a well-defined space. The dynamic is the same as any other activity that requires commitment, be it professional, educational, or sports-related. Stress is also mental and emotional, so recharge daily by doing what you like, cultivating hobbies, spending time with people who make you feel good. It may seem like trivial advice, perhaps sappy, but it's one of the few ways to avoid crashing, to avoid ending up in a state of burnout.

Lead a healthy lifestyle

This is also advice that doesn't explicitly concern trading. If the previous one had to do with the social sphere and the relationship with oneself, this one has to do with the body. As we have seen, stress is also physical. So, take care of your body. It doesn't mean going to the gym regularly (if you do, even better). It means, very simply, eating well and sleeping well. Especially sleep is important. There are numerous studies that correlate the quality of rest with productivity; after all, it's a fact that can also be experienced in everyday life. Obviously, trading is no exception.

Consider automated trading.

With this advice, we radically change the paradigm. Also because it's an indication that closely concerns trading, even in its most technical elements. There is an approach that allows you to drastically reduce the mental, psychological, and emotional load. This approach consists of automated trading. Doing automated trading means relying on software capable of partially replacing humans in trading activity. The "human" contribution, let's be clear, remains essential. It's simply reduced to the bare minimum and focused on a phase that is always important but characterized by a minimal emotional and psychological load. That is, the programming of the trader. The trader programs the entry conditions, the exit conditions, and other options. After that, he lets the software manage the operations. Let's be clear, it's not a simple approach; you need to study and train, but the results it allows you to achieve are significant. Automated trading also has risks. These focus on the choice of software, which is of fundamental importance. Among the best on the market is EvoForex, take a look at it here. Therefore, stress and fatigue in online trading represent a big problem, but it can be mitigated with these simple tips. Obviously, they are not mutually exclusive, so consider them all.