The disadvantages of not having control over emotions in trading?

[danielbro]

I am very new to this and I am constantly anxious and easily distressed when I realize I made the wrong move. A very long way to go.

Every new trader always feel like that, so do not feel like you are only alone in this. I hope you are trading with demo account?

 

[Petrick Liman]

When you do not control your emotion, you are easily misled by, let's say, greed when you are making profit or revenge when you are making losses - these are your cloud judgement and as a result, you will make losses no matter how the outcomes are.

Yes, even if you get profit while being angry and going "all in" one day this stratefy will not work out...

 

[Petrick Liman]

I am very new to this and I am constantly anxious and easily distressed when I realize I made the wrong move. A very long way to go.

There are no wrong or right moves i think. It's all about plan - you either have and stick to it or you loose money, unfortunately(

 

[Petrick Liman]

The disadvantage of not having control over emotions in trading is very clear you will end up losing and regretting it.

Every regret is a good teacher!

 

[e_abrams]

What concrete advice would you give about how to stay in control?
Here is mine - never engage in revenge trading. If you lose, step back and cool off. Don't dig yourself into an even deeper hole.

 

[Akwin]

Good Day,

Hope you're having a blessed week.

Valuable thread, just want to add that allowing fear and greed control our emotions will lead us to take wrong decisions while trading in which we will going to lose. That's why controlling emotions is the most essential thing to do before trading. Do you agree?

Your prompt reply is highly appreciated.

Scencirly,
Akwin

 

[Todor]

You burn your profits if you do not control your emotions.

 

[HeavenLeighGill]

Overtrading, revenge trading, etc. are always a problem for traders that can't keep calm. Losses are inevitable, you have to roll with it and learn from any mistakes that you make.

 

[e_abrams]

That is absolutely correct, but unfortunately, it is also a problem that quite a few people have really.

 

[e_abrams]

A trading plan certainly helps, but it is not enough. One also needs practice, discipline, and often, rest. One must not underestimate the effect exhaustion has on emotional control.

 

[AaronTruth]

Well, if that is true that you cannot control then you cannot become a swing or trend trader. You will be more like a scalper.

 

[sharabela]

Hi! to all members! Controlling emotions is an important aspect of trading. We can never be a good trader if our emotions are beyond our control. If trading begins to go in the opposite direction of our calculations, we get very angry and often we get overtrading which we have to suffer a lot, and often the account ends. It is a good thing if our emotions are in our control, but if we cannot control it. Then we should consider the option of SL in trading. So that we can avoid more damage.

You are right. Controlling emotions is extremely important. If we have a solid plan and strategy, we must stick to that. We should not set our take profit at a level, which seems to be an impossible target with our strategy. Yes, we can let our profit trade run by taking partial profit or by using trailing Stop Loss.

 

[e_abrams]

What do you usually do to keep yourself calm when you trade?

 

[Resolve]

You are right. Controlling emotions is extremely important. If we have a solid plan and strategy, we must stick to that. We should not set our take profit at a level, which seems to be an impossible target with our strategy. Yes, we can let our profit trade run by taking partial profit or by using trailing Stop Loss.

We must try to understand this fact that if the Emotions are kept under control then we will be able to make more income from our trades.

 

[JoshEvansFX]

Hi! to all members! Controlling emotions is an important aspect of trading. We can never be a good trader if our emotions are beyond our control. If trading begins to go in the opposite direction of our calculations, we get very angry and often we get overtrading which we have to suffer a lot, and often the account ends. It is a good thing if our emotions are in our control, but if we cannot control it. Then we should consider the option of SL in trading. So that we can avoid more damage.

FOMO, over trading, poor risk management are often the most common traits.

 

[Lacquer]

FOMO, over trading, poor risk management are often the most common traits.

That’s right! FOMO is a very common problem among traders, but they can’t help it out because it is not possible to monitor trades all the time. I believe if the traders implement the right trading strategies including risk management, then they can trade logically. Using emotions in trading will never have good results, so traders must avoid them as much as possible.

 

[e_abrams]

The biggest disadvantage is that if you cannot maintain a cool head while trading, then you're very likely to lose money.

 

[shortmir]

Trading with emotions will mostly lead to undesired results because trading is a game that is played with strategies and emotions have no place in it. You can’t succeed if you are scared while seeing your trades go down or show the greed to keep the positions open for a bit more profit than the price you’ve decided at the time of placing the trade.

 

[Oakum]

In trading psychology, we learn how to trade logically and not with emotions. Trading with emotions can have huge implications on your trades and eventually, your capital. Therefore, you should only trade after carrying out forex analysis if you want to succeed in the long run. Emotions might help you win a few times, but since there is no strategy involved in your trades, you won’t enjoy consistent success.

 

[Fried_Rice]

Plan your trades like a robot. Then either just accept that you either hit TP or SL.
With good risk to reward ratio, you should never get angry at loosing a trade