In trаding, hоw саn I stоp gеtting еmоtiоnаl?

Discussion in 'Forex - Currencies Forums' started by Benoit W, Mar 21, 2016.

  1. Benoit W

    Benoit W Well-Known Member

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    In trаding, hоw саn I stоp gеtting еmоtiоnаl?
    Yоu саn't prеvеnt еmоtiоns, but yоu саn bесоmе mоrе аwаrе оf hоw thеy аffесt yоur dесisiоns, аnd еstаblish prоtосоls tо mitigаtе thеir impасt.

    Аwаrеnеss: Tаkе а stеp bасk bеfоrе yоu mаkе а trаdе, tаkе а wаlk, аnd dеsсribе yоur еmоtiоnаl stаtе tо yоursеlf. Аrе yоu еxсitеd? Nеrvоus? Buttеrfliеs in thе stоmасh? Аsk yоursеlf why yоu аrе fееling thеsе things, аnd sоrt thrоugh whеthеr thеy аrе vаlid rеаsоns tо mаkе аn invеstmеnt. Rесоgnizе thаt yоur еmоtiоns will mаkе yоu prоnе tо соnfirmаtiоn biаs аnd аsk whеthеr yоu аrе just bеliеving whаt yоu wаnt tо bеliеvе оr whеthеr yоur еxplаnаtiоn is rеаlly ассurаtе аnd соmplеtе. Ассеpt thаt еvеry invеstmеnt thеsis hаs hоlеs аnd fоrсе yоursеlf tо disсоvеr thеm. (Bоbby Fisсhеr gоt grеаt in pаrt by plаying аgаinst thе bеst plаyеr hе knеw, himsеlf.) By undеrstаnding whаt yоu аrе fееling yоu саn аpply rеаsоn mоrе еаsily tо yоur dесisiоns.

    Prоtосоls: Mоst prоfеssiоnаl invеstоrs impоsе limits оn thеmsеlvеs. Thеy sеt up mаximums fоr wееkly оr mоnthly pоrtfоliо turnоvеr, fоr thе pоsitiоn sizе оf еасh invеstmеnt, fоr stоp-lоss rаngеs, аnd/оr fоr еxpоsurе tо thе mаrkеt оr vаriоus оthеr risk fасtоrs. Еvеn thоugh yоur trаding rеquirеs quаlitаtivе judgеmеnt yоu саn аpply а systеmаtiс аpprоасh tо sоmе аspесts оf yоur trаding. Оnсе yоu еstаblish thоsе limits, stiсk with thеm nо mаttеr whаt. This sеlf-impоsеd disсiplinе will аutоmаtiсаlly mitigаtе sоmе оf thе еmоtiоnаl biаs еmbеddеd in yоur dесisiоns.
     
  2. TaurusHorns

    TaurusHorns Well-Known Member

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    Watch poker players that are good. It is all about your total attitude in life, not your attitude towards trading. You connect money too closely to your emotions, so it has power over you and can affect your decisions. Stress kills when it isn't there for the right reasons.
     
  3. radex78

    radex78 Senior Investor

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    In my opinion one way to manage psychology trading is learn alwas trade with plan trading, which as trader in daily trading might they have limit risk in every plan trading daily, if already fulfiled target even these is profit and loss, hence they must stop trading and waiting next day opportunity again
     
  4. tskier01123

    tskier01123 Member

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    I have yet to find a good way. The best way is to make sure you're trading with money you can lose. Trading with money you can't lose will get you very uptight about your money and profits and I think you're starting behind if you do that. A good, sound strategy helps to, it takes out a lot of the guess work. I believe guessing too much adds to your stress because you don't feel in control of your own trades. You need to feel confident and in control and that will help take the emotion out of it.
     
  5. Corzhens

    Corzhens Senior Investor

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    Well, it is not only in trading but in any other endeavor, we should not get emotional. Can you imagine me with my work that involves corporate meetings everyday? And it cannot be avoided that sometimes we argue or engage in a heated debate. When one is emotional, that argument may lead to an unsavory incident. But fortunately, we have the cool heads to prevail most of the time. I find that emotions can get the best of us if we are not aware that's why we should know our capacity to keep cool and be ahead in controlling our emotion before it gets out of hand.
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    You can't. Emotions are part of being a human. A good plan is what helps, set limits such as stop-losses and a certain price where you will realize your profit. And STICK to that plan. You made those numbers when your money wasn't in the market yet, so changing those numbers while holding the securities is just your emotions, whether it's greed, fear or desperation, getting in your way.

    Make a plan, stick to it.
     
  7. radex78

    radex78 Senior Investor

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    Yes indeed as huan will have emotion in trading, especially if we faced with loss, hence usually emotion will appear, but we need to control our emotion becasue if we trade based on emotion usually will suffering with next loss and then emotion will higher more, trade forex need good mindset about loss and we should accept these loss as part in trading
     
  8. pwarbi

    pwarbi Senior Investor

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    If your an emotional person or not isn't really something that you learn, but more something that you're born with, so it's a part of who you are.

    While you can learn to get it under control and tame it so to speak, I think you'll always have that emotional streak in you but you could say I'm some instances though, it could work to your advantage. Letting your heart rule your head isn't always a bad thing.
     
  9. radex78

    radex78 Senior Investor

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    Emotion in trades usually will occur and this is human nature I think, but as trader they need to control their emotion because in trading required calm minds to analyze the market, and how to minimize emotion will better if we trade with smallest lot size I think and if we greedy using big lot size it will influenced in our emotion especially if faced with loss floating
     
  10. kirtimeliwal

    kirtimeliwal Senior Investor

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    There is no place for emotions in the trading world because if you take your decision being too emotional then you can not succeed in future. It is human nature that we get emotional at a point in our life but it may harmful for your investment. to stop getting emotional you can take do mental excise which let you control your decisions. Just stay calm and keep patience while your situations goes opposite to your expectations.
     

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