In the first part, we had looked at the three criteria of trader burnout. A first criterion was the emotional exhaustion experienced by traders who are repeatedly torn between hope and disappointment, explains Wieland Arlt of

Those who feel like powerless victims of market participants distance themselves from the action and become increasingly cynical about trading. Out of powerlessness, the trader becomes alienated from what he is doing. This second criterion is followed by the third: Over the feeling of no longer achieving success, the trader loses confidence in himself and no longer sees any sense in his actions. The burnout is reached. In this second part on the topic, Wieland Arlt presents concrete approaches that you can use to protect yourself from trader burnout.

The Own Claim&8212;Successful Through Perfection?

Let's admit that we humans are not perfect! That man strives for perfection is one thing. But that he can never achieve it per se, the other. Why should we? After all, by striving for perfection we always have the opportunity to constantly improve ourselves.

So it's about the attitude towards ourselves and what we do. In our case, trading. Of course it's okay to strive for perfection in trading. And it's also okay if you don't reach that perfection.

In fact, there are only a handful of traders who trade close to perfect. But there are a lot of traders who trade successfully and profitably—even without being perfect.

With that in mind, one of the first things you can do to protect yourself from burnout is to give up on your own need for perfection. Don't be disappointed in yourself if you find yourself on the wrong side of a trade. That's part of the process. However, remain professional when this happens to you. Manage your trade consistently and according to your rules. And even if you have opened a trade without a concrete setup: If you jump into the market emotionally, you can at least come out of it professionally.

Trading—A Waste of Time?

The essence of trading is to wait for appropriate signals and then react accordingly. Of course, there are a variety of appropriate strategies for different market situations. But still, you always have to wait for them to occur.

Is it then a waste of time to spend the day waiting? There can only be one answer to this: No!

How about reframing? It is a great success, for you, if you manage to sit in front of the PC all day and not make a trade! Because then you've been patiently waiting for your setups to come. And if they don't come, that's not your fault.

Not clicking anywhere to do anything at all is the far greater achievement in this situation. So don't do anything before you do something! Because the "doing anything" is what brings the losses—and which then in turn leads to frustration.

Are you active on social media? There are countless strategies in different time frames in a variety of markets. Who are you comparing yourself to? As long as you don't have a partner who achieves different results with identical trading, any comparison is pointless. But of course, you can learn from the reports of others. Maybe you can adapt their obviously successful strategy?

The Question of Guilt—Are We Failing by Losing?

Be aware: You can't always win. You will always lose as well. Most traders lose about half of their trades and still make money. Does that make them failures? Surely not.

A trade that ends in a loss is not an indicator of skill or lack of skill. Quite the opposite: a professionally managed trade is evidence of real skill!

But what can you do if you have been unhappily stopped out? The answer is simple. Just give the trade more room and reduce your position size at the same time. This way, you can relax and follow your rules without being taken out of the market by the little shenanigans of the market participants.

But if you do fall victim to outside forces, take it easy. With concrete risk management, your capital remains protected and you still have the opportunity to re-enter the market. You may also find the following insight helpful: if the market takes your stop loss, there will be enough market participants to open a position on the opposite side. If the price then goes back in your preferred direction, you can assume that precisely these market participants are under a lot of pressure to move. And what better insight could there be to open a corresponding position!

With this in mind, the "Big Boys" are also not targeting your stop loss, but their stop entry. How do you like this picture?

Attrition Through Impatience?

A prize question: when does the greatest attrition in trading occur? Of course: when the losses have become too great. However, the accumulation of losses is not something you can blame on the market, but something that is self-inflicted.

So, anyone who is frustrated and demoralized would be well advised to review their own risk management first and foremost.

Experience shows that the biggest losses always occur when trading emotionally and without a concrete reason. Whether it is the anticipation of a signal that is never generated or the turning of a position in the middle of the movement. As a rule, it is we traders who bring about the losses—not the market. Accordingly, it is a good protection against emotional exhaustion to simply wait for appropriate signals and then trade only these according to the rules.

The positive effect is multi-layered: not only does the trading frequency drop, but the emotional strain is also noticeably reduced. So, stay patient, wait, and trade according to your strategy. The market offers many trading opportunities for your strategy as it moves. Your task is to wait for them and manage your risk accordingly.

Last but Not Least: What Are Your Expectations?

Expect a lot—but not right away! Trading is a marathon. You will make many small steps in trading, in both directions. In this sense, it is not the individual trade that counts, but the sum of your trades—provided that you control the risk.

As long as you are convinced that you are doing the right thing, you will also be able to take the first steps towards success sooner rather than later.

In Summary, the Most Important Tips Against Trader Burnout:

  • Watch your risk!
  • Perfection is not a state, perfection is a pursuit.
  • Reduce the potential for frustration, give the market room to move.
  • Change your perspective: Will your stop loss be torn, or the stop entry of the others?
  • Act on your strategy, and only your strategy.
  • Stay patient and focused. No signal—no trade.
  • Give yourself time. Trading is a marathon.
  • Trust yourself and your actions.
  • Learn again, and again.

Learn more about Wieland Arlt at