Emotions in trading

While you are trading, sometimes it is hard to restrain your emotions, but that’s the point where the newbie differs from a pro. You should never fight with your emotions, but to fight its causes.

Trading stress and anxiety. The root cause of stress is lack of information, trader urged to act spontaneously almost without knowing what he or she is actually doing and sometimes not sure about decision that just has been made. Each and every trade even with small amount may cause a lot of stress because of highly uncertain situation.

If you will pay more attention to details like specific characteristics of instrument, which you are trading on, analytics, etc. You would probably feel that confidence and calmness dominate through all your trades. You may compare trading this with driving. Newcomers are afraid of uneasy situation and that can put them through a lot of stress. But while he or she gains experience and confidence, stop thinking about how unnecessary things this then newcomer would have a time to pay more attention towards traffic situation.

Stop thinking about the money. At first glance it looks weird, but every experienced trader confirms that it is true. The real problem is to put this attitude in to your mind. Newcomers like to watch price movements until position is closed. But you really need to understand there is nothing you can do—you have made your decision already. In addition, take your time while assessing your results and actions right after the trade is closed because you might be override by emotions and unable to think clearly at the moment.

Try to move steady. It is wise not to change your amount of investment in one option during whole month or two. That keeps you away from “greed factor” and guards from unnecessary emotions.

Trader may face problem that has indirect influence on her or his trading discipline. Discipline urges to protect trader from unwilling emotion and poorly thought out decisions, but our day-to-day life, which has no connection to trading, may heavily distracts us.

When it is hard to think about trading. Trader should free his or her mind from any problem to be able to process a lot of marketing data: news, charts, quotes, trading ideas, etc. So stay away from trading when you are worried about something else.

Firstly, such feelings are pushing on you and affecting your right mental attitude towards trading.Secondly, you will be distracted, thinking about unrelated matters, and making a lot of mechanical actions. Inevitably your trading quality will be lowered.

Don’t boast. While you are telling about your ideas, your success and trading methods in private conversations, especially talking to friends, you will inevitably boast about your success. On one side this harmless fact should not affect your trading. But after such conversations it will be harder for you to control your appetite for revenge, to overcome disappointments and after all keep yourself within set routine you always do.

Reboot your brain. Find for yourself a few days free of trading, when you don’t think about financial market. These days will allow you to refresh your mind, rebound from information over learning, and finally reboot your brain.

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