By Katie Gomez

Stock trading is one of the most stressful, overwhelming endeavors a person can take on. Although the rewards remain enticing, trading is not worth sending your brain into overdrive, leaving your body in a constant state of flight or flight. Today, countless distractions are vying for our attention: notifications, texts, videos, music, TV, and AI programs. Many of us already exist in this state of stress without even attempting to participate in the market on top of it. 

When we are overstimulated, our body reacts to any threat by either fully powering off to conserve energy (burnout) or an explosive purge or release of energy (having a mental breakdown) to deal with it. However, if you can learn to work with your body and brain to avoid these phenomena, trading will be much more sustainable in the long run. That said, this article will provide some tips for dealing with overwhelm and Overstimulation as a stock trader, not only for the sake of your future financial health but also your physical and mental health.

Staying grounded amidst the chaos allows you to find the balance between logic and emotion. When your mind is calm, your focus is sharper, and you carefully deliberate before placing trades and adhere to plans. On the other hand, overstimulated brains degrade risk management through reckless activity and emotional impulses. 

Establishing the proper workflows and self-care routines can allow traders to sustain higher performance and overall wellness. By finding the sweet spot between chaos and calm as a trader, you can learn to control that energy before it explodes, avoiding instances of burnout or breakdowns. 

Although we cannot change the stress that comes with trading, we can learn how to manage better the things we can control: our time, energy, and money we put into trading. Implementing savvy productivity and mindfulness tips allows you to process information rationally without overstimulation.

Calmness and focus make for the effective execution of trades and a significantly higher state of well-being outside market hours. The following tips will help you accomplish this:

1.) Set limits on how often you check your positions, P&L windows, alerts, and other market news. 

• Constant watching creates stress, especially when money is lost- emotions wreak havoc, sending your stress and blood pressure levels through the roof.

2.) Avoid having multiple screens and desktop clutter. 

• A clean workspace allows for a clear mind. 
• Turning off additional screens or closing out unnecessary or old tabs can offer the same effect and mental benefits as cleaning your room.
• Multitasking is not something to strive for; it is something to cut wherever you can
• Use a note-taking system for tracking ideas instead of keeping multiple tabs open. 

3.) Turn mobile notification off when trading (from market open to close). 

• Turn on Do Not Disturb on your PC, Mac, iPhone, etc., to avoid added distractions to an already stressful period. 
• The constant dings, colors, and buzzes throw off your concentration, mess with your dopamine receptors, and encourage a higher margin of error for you to make mistakes.

4.) Listen to calm instrumental music or white noise with headphones.

• Preferably noise canceling to tune out in-person distractions in household or office. 
• Lyrics can add stimulation, so find instrumental tracks that keep you alert but invite a sense of calm.

5.) Try meditation or breathing exercises to clear your mind before opening positions

• Square breath (4-second inhale/4 second hold/4 second exhale/4 second hold)
• Anxiety breath (2 sharp quick inhale through nose/long exhale through mouth)
• Panic breath: When you feel tightness in your chest and can’t get a deep breath, hold your breath as long as you can to release pressure around your heart
• Diaphragmatic or belly breathing (hold a hand on your belly and push air out/in instead of up/down)
• Breathwork of any variety will help lower your heart rate cortisol levels and ease your body back safely into a parasympathetic state. 

6.) Declutter charts to the essential price action and indicators only

• Too many overlays create noisy patterns
• Aesthetically pleasing and concise charts/images are easier on the eyes (and the brain).

7.) Take regular breaks to rest your eyes, stretch, or recharge to avoid fatigue and deteriorating discipline.

• Even a 10-15 minute break can improve performance by offering a change in perspective and more clarity of mind 
• Bonus for additional benefits: quick cold shower to reawaken body and mind

8.) Trade only high-conviction startups in your criteria. 

• Overtrading or chasing hype stocks to stimulate the mind only leads to distraction and Overstimulation.

9.) Keep your trading plan clear.

• Knowing how and when to enter and exit makes trading decisions easier during volatility.
• Sticking to a trading plan allows you to move more quickly, effectively, and unconsciously, saving brain power for more critical roadblocks.
• Best hack to save time, energy, and money all at once*

10.) Absence makes the heart grow fonder. 

• Don’t be afraid to take a step back and take a day off to priortize your health, relationships, and other obligations besides trading. 
• Getting hyperfocused and caught up on your earnings is easy, but not at the cost of your well-being. If the calm is not coming, you must step away and find it before returning to your trades.

In summary, everyone, particularly those involved in the stock market, is susceptible to occasional overstimulation. However, it’s crucial to minimize its duration as much as possible. Overstimulation presents a notable risk for traders in an era dominated by incessant notifications and a continuous influx of financial information. The constant distraction from information overload in the 24/7 markets negatively impacts attention, discipline, and decision-making. Traders need to employ astute strategies to sidestep overstimulation and function at their peak effectiveness.