Stress is the human body’s response system to threat! That’s right, you are a human and when you are threatened mentally you will be stressed which is the opposite of what you want in trading. Remember, at any given point in your day and in your life, you are either stressed or not stressed (carefree). Yes, keep it simple and keep it binary. If you recognize you are stressed while trading, take a break or drink a glass of water. I know this is easier said than done because you think by sitting at the computer longer the market will move the way you had hoped and believe me it will (sarcasm). So just sit as long as you can without stopping out and see what happens.
The ideal trader’s mind is carefree meaning they lack intuition, lack animal instincts, lack emotions, basically they lack being human. By not being human in trading, you will not succumb to stress. You are not to think about the results, predict the outcome, hope for the next move. Just don’t even think, be carefree and follow your rules. The only rule to follow in trading is to stop out. If you can master this simple rule then you are a master trader.
So, what do you need to do to be mitigate stress in trading? Managing risk through position sizing. That means only buy the number of shares that even if the stock crashes to $0 you will not be stressed. It is as simple as that. However, you are greedy bastard and you want to make $1M dollars next week so you throw your whole account into the low float ticker running on chatroom pump. Obviously, this will take too much time, effort, skill, hard work and dedication to grow your account so this won’t work for you. And this is exactly why you are will never be a successful trader. You are not willing to put forth the effort to be discipline. This is how the professionals do it, they only risk 1%-3% maximum of their capital on every trade. They do this simply to mitigate their stress and become as carefree as possible.
Does this make sense to you? The only way to trade without stress is to take only the position size that you are comfortable with. Just like in life, if you are handling to many things at once, what usually happens? Failure.