Emotional State Harmful!

Discussion in 'General Trading Discussion' started by TraderAnalyst, Sep 16, 2019.

  1. TraderAnalyst

    TraderAnalyst Senior Investor

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    Forex traders must be careful and understand that decisions taken in an emotional state can cause big harm because emotions make you flow with the intensity of the moment which may be harmful in the long run. So decisions must be taken very calmly and logically.
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    Emotions could impact trading process substantially, so each trader should know how to deal with them. The most common emotions are greed and fear, which appear depending on the direction of the price movement. In case if the price moves in favorable direction the greed could appear, making the trader either to close position too early to get the first profit or to hold the position too long hoping that the price will move more even if it is alredy far enough from the initial price. At the same time, if the price would move in the direction which is opposite to the trader`s initial bias, it owuld lead to fear of losing. In this case, trader could avoid closing the position hoping that it would reverse in the nearest time.
    All such mistakes are quite common among newbie traders. It happens this way because they focus exclusively on the technical part of trading process and forget about the emotions. To my mind, it is important to find own way to deal with the emotions in trading. There are many interesting articles about emotions that would help trader to understand all this better. Anyway, each trader will have to find his own approach, the solution that would be sutable for him. As for me, the best way to deal with emotions is to improve discipline. If hte trader has a plan and is disciplined enough to act in accordance with this plan, he would be able to succeed in trading.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    When trading you need to be focused and almost regimental - take all emotion out of the transactions and just think as if you are buying and selling boxes.
     

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