Trading commodities can be very stressful, especially for beginners. Confidence plays a big part in the stress factor when it comes to trading commodities. Experienced traders have confidence in their trading abilities and they know what works and what doesn't. They also know that there will be drawdown periods, but they will eventually recoup them if they stick with their plan.
Inexperienced traders often have brief periods of false confidence until the markets give them a wakeup call. Before long, they are left unsure of themselves and their ability in trading. This leaves the door open for excessive risk taking and the gambler instinct rears its ugly head. When you feel overly stressed and you feel it is just a gamble taking any particular commodity trade, it is time to take a break.
Day trading futures can be one of the most stressful trading techniques to venture into. It requires constant monitoring of prices and you have to make many split second decisions throughout the day. Day trading is almost a game of inches. Making one or two bad decisions in a day will likely result in a loss for the day. If you completely lose your head, your account could have a complete meltdown.
Staying calm, focused and confident are all a must for trading commodities and futures. I like to take a break from trading if I feel too stressed or if I feel overconfident. Most people have a life outside of trading commodities (I hope), which can cause a strain on your trading and you probably won't even realize it. Events like a wedding, divorce or and having a baby make it very difficult to stay focused on trading. Do yourself a favor and take a break. The markets and opportunities will always be there when you get back.
