Stress is a natural response to an event with uncertain results.
The response to stress increases alertness to stimuli and enhances performance when associated with an increased flow of adrenaline. The stress response prepares you physically and psychologically for trading by increasing the blood flow to the brain and increasing your capacity for memory retrieval and focused attention. At times, however, the inhibitions, fears and fantasies also associated with the stress response can be the biggest obstacles to trading successfully. An optimum stress response can help you get ready to trade, and it can also increase your ability to handle complex situations in which stocks are moving in unpredictable patterns. The optimum stress response may also be useful in enhancing your ability to concentrate when you are distracted by events or by your own thoughts.