How much does external stress reduce discretionary trading profits?

Assume that you have a solid method that generates a profit every week. By what percentage would you expect that profit to decrease if a stressful event involving the actions of other people begins to impact your daily life negatively, and you cannot easily resolve the problem?

1. None
2. 0.05%
3. 1.0%
4. 5%
5. 10%
6. 20%

 

Losing more than you have i.e. >100% is fully possible if you start making odd decisions and ignore e.g. position sizing rules (on margin). It's obviously not a linear relationship and it's weird to even attempt to quantify like that as dependent on "external stress".

As a discretionary trader, the best you can do if you're in a disturbed emotional state is to not log into your trading account at all (other than to close any open positions), JMHO.

 

My stupid choices in the market used to have a minimal effect on the daily life, instead of vice versa.

p.s you could turn this thread into a poll. Some people prefer voting rather than commenting.

 

I'm a discretionary trader and in my daily preparation routine there is a question that stops every trade that day: I'm I experiencing stress, excitement, or anxiety in any way? If you do, stop trading, you are not thinking clearly. This is also for hunger or being tired.

Also in your numbers 1 to 6, you are underestimating the impact of the results. I think it should start at 1. 20% and by 6. 100%

 

What’s your loss relative to capital at risk: > -100percent.

 

prozac or zoloft helps a lot and a good spotify trading playlist with good headset. troubles be gone....

 

%5
NOT much @ all;
but i allow for 1% slippage on market orders. WMT auto pay ripped me off by a penny once, to much of a hurry to mess with ; but i've found alot more that that in the parking lot-God bless WMT.....
I think a metals dealer ripped me off more than that 1% this year; but he consitantly pays better than most/mostly+ not enough to sue.
But as far as repeating patterns, he tried to do it more than 10%today i corrected him quick/LOL.........................................................

 

50-80% if my vps fucks up.

 

I feel you there. But I'm really trying to ask about stress generated outside of trading, like for example a hostile neighbor or HOA.

 

That's the reason why selecting a high quality VPS is so important. The cheaper ones will always end up costing a lot more in the long run with the outages/disconnects.

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