How to Handle Your Trading Emotions

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

Dorn: When Trading, How do You Manage Your Emotions?

You have to be able to control yourself. You can’t let emotions get in the way of your thoughts and actions. Warren Buffett

One of the most difficult aspects of trading is emotional management. For many months, we have struggled through market and economies that are news-driven, volatile, and filled with uncertainty. For many, it’s been a real emotional roller coaster. . To say “don’t get emotional” is pointless because everyone has emotions around money.

What can you do about your emotions as they apply to trading and investing? Of all the books and papers I have read or written on trading psychology, there is one aspect that stands out most clearly to me. This is the condition of living in the past. I believe that this is one of the most significant obstacles to trading success.

Why? Because the brain remembers. The brain imprints loss or gain in a “memory” area called the temporal lobe, and generates fear or greed as a result of it. The larger the loss or the gain, the greater the neuronal imprint becomes. Losses are imprinted as fear and gains are imprinted as greed. Both are equally destructive to further success with trading.

The real culprit is memory. It is the memory of losses or gains that stay with the unsuccessful trader, causing continual mental sabotage and inability to move forward.

The best traders forget about a loss the minute they take it and move on. They are confident in their system and their ability to execute it. It is not about the money for these people. It is about finding a system that will bring them more profits than losses. The best traders know how to take losses and not become depressed, angry, jealous, disgusted or defeated. They know how to take gains without gloating, boasting, or becoming euphoric. They see only the trade they are about to enter—not the trade that just ended or the one that might be coming in the future. All past trades are out of sight and out of mind. All future trades are an illusion.

This is a really difficult thing to do, but it must be done in order to move forward. If you are unable to detach from the past and the future, you will continue to be a victim of fear and greed.

Fear doesn’t form in a vacuum. It is a learned response to a particular event or probability. In the case of trading, when you have a trade that goes bad, the regret and frustration can carry over into the next trade. Often, the fear is so consuming, that you don’t enter your next trade. Of course, Murphy’s Law dictates that the trade you don’t enter is the one you should have entered, which only compounds the existing emotional anguish.

Greed creates the opposite problem. With a couple of consecutive winning trades, the ego enlarges and invincible feelings overcome logic. This will ultimately lead you to trades that you normally would not have entered. Finding good trades is hard enough, while finding poor trades seems to get much easier after a couple of winners. Emotions cause ‘perceptual distortion’ where we only see the part of the picture that our beliefs allow us to see.

The instruction is to know who you are in this present moment. You are the problem and you are the solution. Living in the past or the future does nothing but stir up emotions that impact adversely your trading and other aspects of your life. It is said that fear blinds one to opportunity and greed blinds one to danger. Make every effort to be fully present and you may be surprised at the outcome. It’s the best way to defeat the enemy within you.

The ability to be in the present moment is a major component of mental wellness…Abraham Maslow

How to beat your emotions in Forex trading ?

How to beat your emotions (Fear, Greed, Happy, Sad, Tension) in Currency trading ?

Greed and fear are two major deadly feeling which if not checked will lead to your ultimate failure in forex trading. Virtually 99% of traders find themselves battling with these two emotions. Well, guess we are naturally inclined to act in fear and greed.

Believe it or not, the difference between successful traders and the unsuccessful ones is that while the former has learnt effective techniques for controlling these emotions, the former is just clueless about it. I shall be sharing with you tips which when followed will help you put these emotions under check as you pursue success in forex trading.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

1. Get over your losses as soon as they come:

Some traders make the classic mistake of waiting for long after incurring losses in the hope they would do well. In reality, the dynamics of the market move so fast that such traders find themselves losing several more points. Even when they eventually rise, they will still maintain an unprofitable position. Always bear in mind that not every trade will be profitable. Your goal should be to profit from at least half of your total trade. When you have eventually found your winning campaigns, focus more on them as doing so would lessen your losses.

2. Never allow your emotions interfere with your trading

Decisiveness is key to every business dealing, including forex trading. Successful forex trades are those who are decisive enough to respond quickly to trends that alter the dynamics of the market. Once your original analysis has changed, change with it.

The forex market is filled with uncertainty – the good and bad will always happen sometimes when you least expect it. It is beyond you power to accurately predict the market, and you have to accept that.

3. Work with a plan in mind and not with hindsight:

Most forex traders see forex as more like shopping rather than trading. By shopping, I mean spending your dollar without planning on stuffs when the sudden feeling to do so arises.

So, instead of trading based on your instinct or feeling, it is better you have a plan and stick with it. Your plan must take into account stop loss and profit target. A plan makes it easy for you to get out on time when the market moves against you, and to amass profit when it moves in your direction.

Having a plan that hints you when and when not to trade is the best way to deal with harmful emotions that plague forex traders. This technique works because you won’t to make personal judgment for your trade. Depending on your instinct and gut feeling may work but only in short term – you need a solid plan to succeed with forex trading in the long term.

4. Observe all forex trading rules:

Before placing a trade, check to see if you have met all listed condition, otherwise, you will have yourself to blame.

Truthfully, there is nothing difficult about following rules. As easy as this may sound, some traders often times fall for the trap of placing trade without first knowing all the required condition. As a rule, never get carried away with excitement, influence of others or fear as they are all deceptive.

5. Don’t place your trades all at the same time:

The forex market is very unstable in nature, and no one can exactly predict its direction. It is filled with series of uptrends and retracement, and so what successful traders do is to wait to see trading signals before placing a trade, and will never trade during times of retracements.

Excessive trading will be of no help. If you have been trading in multiple currency market and yet to record success, the best thing to do at this point is to focus on one or two markets and forget the rest. The fewer the trade you follow, the easier it will be to track your success and losses. Lessening your number of trades makes it easy for you to spot out unsuccessful trades.

However, it is important you pay close attention to the market you are trading in. What matters most in forex trading is keeping up with market trend and conditions. During unfavorable market condition, you are better off staying away from trading.

6. A good money management technique is way better that forex trading technique

Trying to make so much money within a short period of time puts you are grave risk, and you are very likely to wake up one day and discover that all you have is gone. There are no shortcuts in life, and forex trading is no exception. Never be carried away when someone comes telling you how much profit they have made consistently during the months because it is most likely a scam.

Your success in forex trading starts the day you learn to master your emotions. Simply put, never allow yourself get dragged down in the event of losses, neither should you get over the roof in times of profits. When profits or losses doesn’t move you, you will eventually get to overcome the emotion of fear. When you look closely, you will discover that most mistakes traders make are made out of fear.

Conclusion

To become a successful forex trader, you must first master your emotions and put them under check. Failure to do so will inevitably lead to your failure, making success elusive.

Credits : Franco

Keep Learning new useful informations everyday with Forexgdp service! We are here to help you for getting consistent profits in Forex Market. We will keep giving you the most useful informations that will change your trading life.

If you are interested to learn forex trading in correct way, you can join in our Forex trading courses here : https://forexgdp.com/forex-trading-course/

If you are interested in forex signal service, you can join here : https://forexgdp.com/forex-signal

If you need any support, please click here to contact now (or) write us your questions to [email protected]

We are ready to help you always !

Thank you
Regards,
Forexgdp Team.

3. How to master trading psychology and conquer your emotions

We have all heard it: Psychology and emotions are the most important factor in trading and the biggest hurdle.

But why do so few people then actively work on it? It’s simple: most do not know how.

When it comes to psychology and trading emotions, there are three main pillars:

3. FOMO (a result of the first two often)

In this lesson you will learn how to work, and then hopefully overcome, those three challenges. But you will not get the usual tips – promise!

I will get very practical and hands on. In Edgewonk we were aware of the common issues and then built features around them.

>> Click for the mentioned: Trader Development Program

>> Bonus: Save $30 by using the promo code “Tradimo”

1. Why traders fail and how to overcome it

2. 3 tips for creating bigger winners and reducing losses

3. How to master trading psychology and conquer your emotions

4. 5 minutes for the perfect trading day

5. Start trading like a professional

6. 3 tips that you can do right now

тест: The Edgewonk Quiz

Tradimo помогает людям принимать активное участие в контроле над их финансовым будущим, обучая их трейдингу, инвестициям и управлению личными финансами.

Предупреждение о рисках: Торговля финансовыми инструментами несёт в себе высокий уровень риска для вашего капитала с возможностью потерять сумму, превышающую ваши первоначальные инвестиции. Торговля финансовыми инструментами может не подходить для всех инвесторов и предназначена только для лиц старше 18. Пожалуйста, убедитесь, что вы полностью осознаёте риски и, при необходимости, обратитесь за финансовым советом. Образовательный контент на Tradimo представлен только в образовательных целях и не содержит в себе финансовых советов.

© 2020 Tradimo Interactive ApS. Все права защищены.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Top Broker!
    Best Choice For Beginners!
    Free Trading Education!
    Free Demo Account!
    Big Sign-up Bonus!

  • BINOMO
    BINOMO

    Perfect For Experienced Traders!

Like this post? Please share to your friends:
How To Choose Binary Options Broker 2020
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: