“The mind is everything. What you think, you become.” – Buddha
In recent years, we have seen a remarkable shift in the conversations surrounding mental health, across the globe and in India. It’s as if there is a collective awakening towards treating mental health just as crucial as physical well-being. People from all walks of life are stepping forward to talk about mental health. Whether it is Bollywood stars, social media influencers or a common man, more and more individuals are re-emphasizing the importance of doing away with the stigma associated with mental health.
In the fast-paced world of stock markets, traders too are taking the brunt of keeping up with constant ups and downs while managing mental stress that comes along. Mental health is a critical factor for success in any field, but it is especially important for traders. The trading world often requires traders to make quick decisions under pressure. If they are not mentally healthy, they are more likely to make mistakes that can cost them money.
Read More – How to avoid losses in stock market?
Since May happens to be the Mental Health Awareness month, what better time than now to talk about the importance of focusing on mental health, especially in the stock market trading world.
Challenges faced by traders in India
Trading in the Indian stock market can be mentally demanding, with traders frequently exposed to market volatility, high-pressure situations, and the constant need to make quick decisions. This intense environment can contribute to various mental health challenges. Among the common mental health conditions prevalent among traders were anxiety and depression.
Bengaluru trader seeks mental treatment to cure addiction
Recently, there was news of a Bengaluru man developing an addiction to stock market trading, resulting in a loss of Rs. 30 lakhs. His obsession with trading not only led to significant financial losses but also strained relationships and negatively impacted his mental health.
This case highlights the potential pitfalls of stock market trading and underscores the need for traders to prioritize their mental health. By being mindful of the risks involved and taking proactive steps to maintain a balanced lifestyle, traders can enjoy a more sustainable and rewarding experience in the stock market.
Extended trading hours may aggravate mental health issues
In India, the trading hours for the equity market is 9:00 AM to 3:30 PM, both for cash and derivatives. The currency and interest rate derivatives segment on the NSE operates from 9:00 AM to 5:00 PM. On the other hand, commodity markets trade from 9:00 AM to 11:55 PM.
Recently, there have been various talks about extending trading hours. While it is still uncertain whether this will happen or not, there are mixed opinions on whether this should be implemented. Some experts believe that longer trading hours will help increase capital formation by enabling more people to participate in the markets. However, mental health experts argue that extended trading hours can severely impact retail traders in the long term. Tracking P&L (profit and loss) for long hours can be stressful and this can affect a trader’s life outside trading.
What does research say about mental health of traders
Various studies conducted across the globe have explored the mental health of traders, revealing some common findings:
- Anxiety and depression are common among traders due to the high-pressure, fast-paced environment, market volatility, and potential for financial loss.
- Traders experiencing mental health conditions, such as anxiety or depression, are at a higher risk of making mistakes and incurring financial losses due to emotional decision-making, impulsive behaviour, and a lack of focus, resulting in poor trading choices and increased risk exposure.
- Long-term stress in traders can negatively impact mental and physical health, leading to burnout, sleep issues, weakened immunity, and worsened mental health conditions.
- Social support and self-care are crucial for traders’ mental health. A strong support network, exercise, mindfulness, and prioritising self-care help manage stress and maintain trading performance.
- Early intervention is key to addressing traders’ mental health concerns. Prompt professional help, like therapy or counselling, equips traders with coping strategies to sustain a healthy mental state.
Essential mental health practices for traders
There are a number of things that traders can do to improve their mental health. These include:
- Build resilience. Resilience is the ability to bounce back from setbacks. Traders can build resilience by practising gratitude, focusing on the positive, and adopting a growth mindset.
- Practice mindfulness. Mindfulness is the practice of paying attention to the present moment without judgement. Traders can practise mindfulness by meditating, doing yoga, or simply taking a few deep breaths.
- Maintain a healthy work-life balance. It is important for traders to have a life outside of trading. Make time for activities that you enjoy, such as spending time with family and friends, exercising, or pursuing hobbies.
- Adopt effective risk management strategies. Risk management is the process of minimizing losses. Traders can adopt effective risk management strategies by setting clear risk limits, diversifying their investments, and avoiding excessive exposure to volatile markets.
- Seek professional help if needed. If you are struggling with your mental health, do not hesitate to seek professional help. There are many therapists and counsellors who specialise in helping traders.
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One Percent Academy’s Mental Health Initiative
One Percent Academy in association with ‘Heart It Out’ will be launching a Mental Health Awareness program for traders.
If you are a trader, what should you look forward to –
1. Mental health helpline – You can dial +91 9811986839 to seek help regarding your mental health dilemma. Don’t worry, your identify stays entirely anonymous. This helpline will be functional 24-7 starting May 23, 2023 until May 31, 2023.
2. YouTube Live – On May 24, 2023 – watch experts from ‘One Percent Academy’ and ‘Heart it Out’ talk about ‘Traders Dilemma – conquering the mental edge’.
3. Discord Community – If you’ve been feeling lonely as a trader, its time for you to Join the One Percent Academy Discord community. Talk to and share your thoughts with like-minded traders. After all, that’s what communities are meant for!
Conclusion
In stock markets, mental health is the ultimate asset. As the wise saying goes, “A sound mind breeds profitable trades.” By nurturing mental well-being, traders can be better equipped with clarity, resilience, and emotional balance that’s needed to navigate market ups and downs.
If you are a trader, remember to prioritize self-care, seek support, and cultivate a positive mindset to make a transformative difference in your trading journey. This way, you will be better placed to achieve success and fulfilment in your trading endeavors.
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