By Andy Jordan on Thursday, 02 June 2016
Category: Trading General

Controlling Emotions

Winning traders cannot afford to be influenced by their emotions. The nature of trading demands an objective, logical approach. If you experience extreme excitement after a win and extreme disappointment after a loss, you will be living on an emotional roller coaster: up and down, up and down.

Many beginning traders have head knowledge of what it means to control their emotions. They can imagine an emotionless being, one like the “Terminator,” from the movie of the same name. But when it comes to putting the idea into practice, they find it difficult.

It takes practice, but it is possible to control your emotions and achieve the objective, logical mindset that is needed for trading profitably.

The most effective way to control emotions is to focus on those things you know to be true. You must develop confidence in yourself and in what you are doing. The only way I know to do that is to observe the markets, notice those things that take place a high percentage of the time, get them down on paper, and then begin to trade them—you can paper trade or use a simulator if you feel the need.

Keep in mind that you will have losses. No method, approach or system is perfect. But if you choose high percentage occurrences, you can rely on the fact that if properly managed you will come out on top.

Related Posts

Leave Comments