Trading is one of the most stressful endeavors imaginable so a trader must endure a tremendous amount of stress. Trading is physically and mentally punishing. Probably the toughest time any trader experiences is during a large loss, or a series of sustained losses resulting in a large drawdown period.

Taking losses day after day with a strategy that, just a short while ago was working well can be a terrible experience. The trader watches hard-earned profits or original investment capital erode quickly into thin air. Another frightening experience is to build a profit in a trade, only to see it vanish and turn to a loss when the market moves swiftly against your position.

These are just a few of the many ways the market can batter your psyche and gnaw at your soul. These kinds of experiences will never end as long as you trade. You must learn to live with them, or find some acceptable compromise. But remember that the market makes no compromises; so you must.

Trading is a nurturing ground for internal conflict. The combination of a limited rule structure and constantly changing environment is fertile ground for all kinds of inner turmoil that surface in trading. Contradictory experiences, as well as seemingly illogical and cruel markets, somehow bring out emotional conflicts within us. Contradictions arise in trading all the time and the trader must try to continually resolve these conflicts. These are not easily resolved and often are the seeds for quitting the market altogether.

Conflicts make it hard to concentrate. Focus and attention in the market is important. Internal conflicts and external contradictions seem to steal attention away, making it difficult or impossible to trade.

Trading is not an occupation, but a love/hate relationship in which the trader constantly struggles with not just making and losing money, but his own gain and loss of identity. This may not even be in the sense of ego, but more in the creation or destruction of ideals and dreams. It is more closely related to the artist's world, although the benefits and drawbacks are much more tangible.

It is imperative you thoroughly understand trading will be a grueling, grinding process that can easily wear you down. You must not allow the market to affect the way you feel about yourself. Trading the market is a never ending struggle which emanates from within rather than without. The stress will always exist, but the trader must learn how to avoid or channel it away.

You might feel that you have to deal with conflicts and contradictions all the time at work, so why is trading any more demanding? You are correct but there is one important point not considered. You are paid for your work, so even if there is much stress and frustration at the job the compensation makes it much more bearable. In contrast, when trading, you may have to suffer through a great amount of stress, conflict, and contradictions. But to make things worse, the trader may lose a lot of money in the process. Imagine working very hard and not getting paid, or even losing money for your labor. That makes all the difference.