Psychological Endurance

What is psychological endurance?

Psychological endurance refers to the ability of an individual to maintain mental resilience and cope with stress and adversity over a sustained period of time. It is the capacity to persist and maintain focus and motivation even in the face of challenging circumstances, setbacks, or obstacles.

Psychological endurance can involve several components, such as emotional stability, mental toughness, grit, and determination. It involves developing a positive mindset that allows an individual to remain focused on their goals and stay motivated, even when faced with setbacks or failures.

Psychological endurance is important in many areas of life, such as sports, academics, and work. People who possess high levels of psychological endurance are better able to deal with stress and pressure, and are more likely to achieve their goals in the long run.

Some of the strategies that can help build psychological endurance include developing a growth mindset, setting realistic goals, practicing mindfulness and meditation, and building a strong support network of family and friends. Additionally, engaging in regular physical exercise, eating a healthy diet, and getting adequate sleep can also help improve overall mental and emotional resilience.

How long could you endure the pain? In terms of trading, psychological endurance is the great differentiator. That is a question that many market participants ask themselves on a daily basis. Unfortunately, that question imposes a deeper fact – that the participant does not have a strict systematic trading process in place – they are “winging it.”

Trading successfully is not about understand technicals or fundaments – that’s the easy part. Successfully trading the markets day in and day out, boils down to one thing – your psychology. Understanding yourself and more importantly understanding how other market participants think under certain circumstances.

Why do you think when a decent sized selloff gets underway, it cascades very quickly and usually goes far deeper than expected? One word – emotions.

Most traders allow their emotions to overcome their market intelligence. They see their PnL turn red and get deeper and deeper in the hole as time progresses.

Why do you think that is?

Simply put, there is a lack of understanding how the market truly operates.

Market makers and Institutional traders know how emotional most traders are when faced with market stress. They are highly predictable, therefore easily manipulated.

Those that move price, take advantage of this reality, and chop up the market before real moves get underway.

Having market “endurance,” is basically understanding what is truly happening. How long can you mentally withstand the “storm”?

Ask yourself this, how many times have you taken back-to-back-to-back stops, gotten mentally exhausted, reached your daily max loss, and THEN saw the stock do exactly what you had planned for it to do? Probably more times than you would like to admit. We’ve all been there.

This is where psychological endurance comes into play. A trader needs to psychologically understand what is happening. If you find yourself “in the storm”, you have two choices – get out and wait or ride it out.

Personally, getting out is far easier and much less stressful. Take the small L, then sit back and wait. Wait for the “dust to settle”, then get back in if/once price begins printing what you’d plan for it to do; after most other market participants have been chopped to pieces.

Key is to take a step back, whether you are “in the storm” or not. Take a step back and understand what is happening. Understand that the players moving the market are pushing the mental limits of market participants. Understand that the “storm” will end. Understand that once the “storm” ends, then most likely the real move will begin. Of course, there are not certainties in trading, only probabilities. But by understanding that your psychological stability is getting tested, will put probabilities far on your side. And that is all we can ask for as traders – putting probabilities far in our favor.

About The Street Trading

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Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at www.thestreettrading.com

We look forward to joining you on your trading journey!