How to Cope with Burnout as a Trader

In today’s episode, we will be speaking on the topic of how to cope with burnout.  It’s been said that trading is the hardest easy money that you will ever make and we believe this to be true here at TRADEPRO Academy.  As traders, we are required to perform at a high-level and this constant grind can weigh on you after some time, after all, nobody is immune from burning out. With that being said, there are some warning signs that you can look out for because burn out doesn't just happen - there are several stages that lead up into it. Since there are several stages that lead to burning out, that means that you can prevent it from happening by being proactive from the start! If you are already dealing with burnout, then it's okay! We'll share some tips that will help you navigate through this rough patch and get you back into the right mind space. Before we can identify the stages of burnout, let's first define what it actually is! Our two favorite definitions for burnout are:

• "A state of physical, emotional, and mental exhaustion caused by long term involvement in emotionally demanding situations." – Ayala Pines and Elliot Aronson.
• "A state of fatigue or frustration brought about by devotion to a cause, way of life, or relationship that failed to produce the expected reward." – Herbert J. Freudenberger.

Let's dig into these definitions a little bit - note the role exhaustion plays, especially at the hands of emotionally demanding situations and how mismanaged expectations can lead to frustration. Trading successfully demands mental sharpness and emotional objectivity at all times - the longer you do this, the more emotionally demanding situations you will encounter. Think about it - the winning streaks and the periods of drawdown - all of these situations will test your emotions and if you are not proactive, they can lead to burnout! Now that we know what burnout is, what are the different stages that lead to burnout?

1. The "Honeymoon" Phase
2. The "Onset of Stress" Phase
3. The "Chronic Stress" Phase
4. The "Burnout" Phase

Each phase has different symptoms that are associated with it and these symptoms can provide traders with warning signs so that they can be proactive in identifying burnout before it happens. But what if you've realized that you are already in the "Burnout" phase? What steps can you take in order to manage your way out of it? To get a better understanding of how to cope with burnout, let's take a look at how elite athletes deal with it - after all - traders are elite athletes! How do elite performers deal with burnout? 

• Take mental breaks
• Manage their expectations
• Find new and interesting ways to challenge themselves
• Take some time for rest and recreation - recharge the batteries

Some Things We Also Discuss in Today's Show: 

• Breaking down the definition of a burnout 03:00
• Are stress and burnout the same thing? 06:00
• Why performance athletes burn out 09:20
• The four phases that lead to burnout 12:25
• The Honeymoon phase and symptoms 13:59
• The Onset of Stress phase and symptoms 17:00
• The Chronic Stress phase and symptoms 24:20
• The Burnout Phase and symptoms 32:55
• Mark's recent bout with burn out and how he handled it 38:23
• How George struggled with burn out shortly after starting trading full-time 49:45
• Turning down the volume on your negative thoughts that don't serve you 53:54
• How elite performers deal with burnout 57:39

Resources

• Connect with our community online: Trade Pro Academy
• Catch up with our earlier episodes: Mind Over Markets Podcast
• Check out the YBS Youngbloods channel on Youtube
• Check out the book on NLP that Mark mentioned in the show on Amazon