Emotions - How do you deal with it?

[drcha]

The only way to eliminate emotion from trading is to trade with a fully backtested system with clearly defined trading rules, as this will give you total confidence.

When you are absolutely confident you will make money in the long run, then after trading for a while you will start noticing that you don't give a rat's ass about the outcome of each trade anymore.

When you finally reach that mental state, then you made it as a trader

I don't think this can be said any better. This is absolutely the holy grail.

 

[drcha]

Baron needs to add facebook like buttons.

Probably the biggest problem that beginners have is that they want to be excited. You have to decided if you want to be excited or make money pretty early on though. Most people are actually significantly more invested in escaping the boredom of every day life - and as long as that is the primary motivation they are pretty much hopeless as traders.

Yes, well, you can have both. One can trade the boring, tried-and-true system with most of the trading capital and use a small fraction for something crazy. You just have to keep it corraled in terms of size.

 

[cornix]

Emotions are signals. They contain information. Analyze that information.

 

[dbphoenix]

xelite777 said:
The only way to eliminate emotion from trading is to trade with a fully backtested system with clearly defined trading rules, as this will give you total confidence.

When you are absolutely confident you will make money in the long run, then after trading for a while you will start noticing that you don't give a rat's ass about the outcome of each trade anymore.

When you finally reach that mental state, then you made it as a trader

I don't think this can be said any better. This is absolutely the holy grail.

Absolutely.

 

[Turveyd]

Badly!

 

[pinfire]

I try to remain normal ,away from emotion while trading . I do deep analysis of forex market and decide according to my plan for profit and loss possibility . I try to follow my plan , take low profits that are sure not think as a greedy man . I must remain active when to close position if profit is not mine .

 

[murray t turtle]

partial

Emotions are part of us as humans. We can't take it away, nor erase it from our system. But we can control it. Well, this is one factor that affects us all as traders. How well have you been able to curb your emotions while trading so .....?

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Study more than trade;
trade-invest, then study more than trade.
7, or more years, helps also.........................................................................................

 

[formica]

partial
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Study more than trade;
trade-invest, then study more than trade.
7, or more years, helps also.........................................................................................

7 or more years will help but I've seen some traders trying to trade from last 4 years but still they are the same as they were in start. Its because they don't implement a trader's mindset which is very necessary in order to control emotions.

 

[elisatrader]

I've started trading for a year and I can tell you, from my personal experience, that I'm not that good at controlling feelings and emotions yet when it comes to trade.. at the beginning , the euphoria was so great that it led me to make stupid mistakes I could avoid.

 

[mschwartz]

Automate the trading.

Even if you automate the trading then you have to deal with negative emotions, for example when you lose a lot of money.