Have anyone of you come to a point where you lose up on many of your positions? When you feel emotionally that this is the best time for trading? / when you have a good dream or a good belief this is the best time for a good trade( your mind feels as though you can make an impact with your actions) Once this happens emotions begin to take over,do you go ahead to trade or restrain yourself during this time?
How to manage Emotions of trading?
- Thread starter Sarah12
- Start date
- Watchers 37
Every trader has his own methods of doing with emotions during trading. Basically, it is the same as with managing emotions outside trading. If you are calm and know hot to keep calm in difficult situations you will carry these skills and knowledge to your FX trading environment too.
This is one useful thing I go by''If you want to trade proficiently, you must control your emotions'' Learning how to Control your emotions and setting goals are extremely important in your daily trading. They provide direction and discipline, which in turn leads to success. Without them, you will have no goals and your trading techniques are not too likely to improve.
There is a theory that states that when a person encounters stress, their brain quickly makes calculations (so quick that the person doesn’t even notice) to make a determination as to how that stress should be handle . in trading we can get quite a bit of stress when our positions move against us. We must learn how to control our emotions so we do not make decisions we might forget. As to feeling emotionally that it's the best time to trade I think it solely depends on how much you trust your instincts
Yes this is fact that we have to control our trading emotions and only when we will have total control over them, we can hope to get success soon
A lot of traders are on the losing side of the forex market not because they are lacking when it comes to the technical aspect of the forex, as they can well interpret charts and timeframes yet they have severally gotten the margin call. Why then? Simply because they can't manage their emotions when in open position. The best way to stick to your trading strategy. And most importantly make sure the strategy agrees with your trading psychology. From my experience, more disciplined tend to trade ranges while more emotional traders prefer trading breakouts.
one thing for sure we are all bond to make mistakes, but failure is an option, take from exp and just push forward, there are many ways to try and control emotions, but there will always be tens times and its normal.
I mean if I know that I'm losing money then I know that I have to stop. I have a hard time losing money just like the next person, but I also have a hard time trying to control the emotions that I have. I know that when I first started to use demo accounts that I had a hard time because there are certain emotions that you can develop while using it, and then I start to not think of it as my own money. That's the biggest problem that I have, and I lose that normal emotion that I would normally have. Top Forex brokers will try to caution you against putting too much faith in trading results achieved with a demo account, mostly because such achievements are emotion-free
The key to successfully trading in Forex is emotional discipline. Traders need to restrain their fear or excitement or greed. They should have no place in the way we trade. But it's kinda hard since we are humans, not mindless robots. That is why I advise traders to always, to begin with, small amounts they can afford to lose. It reduces the risk and anxiety that comes with trading.
trading requires a strong command on your emotions. depression will affect your trading strategies. at the same time excitement ll turn your confidence in opposite direction. keep calm, stay focused and you ll be emotionally neutral while trading
First of all, now I am not using various trading lot size in my trading, and don’t open more than one trade in a time! As a result, I can avoid big loses here quite comfortably! In addition, I respect my trading plan and follow my trading instructions so honestly! Thus I can control my emotions and greed, I don’t allow instant decision here!
I totally agree with this. A very good mantra to keep your emotions under control is consistently following your trading plan. A well-structured trading plan will never allow taking any action beyond the set limits. Hence, controlled decision making will keep emotions under control and trading would not get hamper.
Trading psychology is one of the most interesting and difficult aspects of trading. I believe that everything comes with experience, so you just have to trade and find the balance between the strongest emotions of traders - greed and fear. If you have hard times keeping your emotions under control, open a cent account and practice, practice, practice. I think it's a great decision since it's a real account where you experience real emotions with minimal risks
In this case, my trading plan is my main strength! I don’t break my trading rules even I never trade anymore after reaching my daily trading requirement! On the other hand, I work in my losing trade positions on the Saturday & Sunday.
Good point! Really, following the trading plan so honestly is really a good thing! I also follow this way of trading in my live trading! By the way, no doubt emotions is one of the main problem here!
In Forex trading, emotions is the best enemy of a trader. Traders are human beings that we have to find a way of living with emotions, we must control them and minimize their effect in our lives. A good trader must be able to control his emotions especially greed.
Similar threads
