Thread by @AnandableAnand

Burnout among traders , a thread
unlike what we think our brain’s capacity to take multiple decisions, to handle failures, to handle setbacks and to handle negative emotions is limited

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just like our bodies get tired, so does our brain

burnout for traders, applies more to discretionary traders then to system traders but it does affect everyone

It affects discretionary traders more, As for them every decision takes a mental toll,

takes away mental reserve and affects them negatively

when a systems trader does rule based trading,

he has already outsourced a lot of brain functioning to his backtested system so scope of self-blame is lesser

coming back to burnout when we have series of setbacks,

we feel irritated we feel less alert more impulsive and

there a rush of different hormones sloshing through our brain trying to disrupt normal functioning of the person outside of trading and while trading

sometimes it reaches to a point where a trader simply hates himself,

feels hopeless and doesn't want to look at the screen

First, this realization is very important that it happens to EVERYBODY

once we have understood it, we stop blaming ourselves completely and take it as a normal behaviour

For example, after running a marathon feeling sore for 2-3 days is normal, it happens to everyone

So, when burnout happens, as first step,

stop trading completely write down your thoughts,
write down what triggered you,

also it is very important to write down a date on which you will come back to trading

because it's very common for people to start postponing the come-back date

they don't want to come back to trading at all

they want to be engaged in some way (trolling other traders is one such behaviour) but they do not want to trade

so, write down a date on which you will come back

it can be one week it can be 15 days

once you have done that take a complete break from trading if it affects you too much take complete break from the screen as well,

take a vacation take break from social media

believe me you will come back refreshed, there is this concept, brain gets recharged after a vacation or relaxing activity

once you come back to trading don't start with full lots start small again

not because your system works or doesn't work,

every system works and no system works all the time

Start small, get a feel of the process again first five days or 10 days very important to stick to the discipline,

once you have achieved that then you can go back to trading your earlier way

if it happens again within a very short period then probably you need much longer break

markets are not going to run away anytime soon, everything is going to be here, you need to focus on your correcting your mindset

Remember, successful trading is all about psychology and positive mindset