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Controlling Emotions

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Controlling Emotions

Postby painofhell » Thu Jul 13, 2017 3:45 pm

Weekly Trading Lesson: Controlling Emotions

As traders, we constantly hear the phrase, “you have to be able to control your emotions to trade successfully”, or some derivation of that common theme. So what exactly is behind that statement? What emotions? How do we control them? What are these people talking about? It is a phrase we hear so often, it becomes this loose abstract concept with no clear rules, and at some level, easily ignored. While intellectually, most understand the importance of controlling emotions, once in a trade, the intellect and logic of a trader become altered. This is a very subtle, almost imperceptible shift in real time and the clear recognition of letting your emotions dictate your trading decisions often only occurs after the crucial emotional decision was made. “I can’t believe I did it again”, is an all too common sentiment immediately after a hasty exit from a poorly executed trade. We have all been there. So how can we move to correct this potential trading pitfall?
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What is an emotion?

The definition of an emotion is a natural instinctive state of mind deriving from one's circumstances, mood, or relationships with others. For our purposes, we can classify an emotion as the natural instinctive state of mind deriving from one’s current trade.

How do we control our emotions?

I think the first step to controlling our emotions as traders is to identify, with specific terms, the exact sentiment behind the emotion. An emotion or sentiment that I often speak of is the feeling that you might be missing something if you do not enter a trade. A trader who is not in control of this process might enter a trade on less than ideal confirmations because they are afraid to miss the opportunity to profit. Making a profitable trade feels good. The risk of loss is ignored in those few crucial seconds before entering the trade in the desire to get that good feeling once again. But traders (especially newer traders) should not be too hard on themselves if they find themselves making this mistake. While an impulsive decision it is also a natural instinct.

What actions can we take to control our emotions?

Awareness of this process is the first step in overcoming the tendency. The question to ask yourself is: Am I entering this trade because I see a clear opportunity with the complete understanding that I might be wrong and therefore controlling my risk or am I entering the trade because I am envisioning the good feeling I will get when I exit the trade with a profit? A professional trader views the market through the lens of risk, not potential profit.
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Re: Controlling Emotions

Postby James Flores » Tue Aug 01, 2017 3:02 pm

Controlling emotions is a very important thing for as trader. A trader has trade with calm mind by understanding the market movement. If any trader do trade with emotions then he may have to face losses. So it is very important for a trader to practice well to control their emotions. To do trade well you must have to learn forex well and find a good broker to trade with. But there are so many broker which did not provide good services to their clients. And creates many issues to their clients unnecessarily. Ironfx is one of them. Their support system is very bad.
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Re: Controlling Emotions

Postby raniya » Sun Aug 06, 2017 7:43 am

James Flores wrote:Controlling emotions is a very important thing for as trader. A trader has trade with calm mind by understanding the market movement. If any trader do trade with emotions then he may have to face losses. So it is very important for a trader to practice well to control their emotions. To do trade well you must have to learn forex well and find a good broker to trade with. But there are so many broker which did not provide good services to their clients. And creates many issues to their clients unnecessarily. Ironfx is one of them. Their support system is very bad.


Yes, we need to learn how to control our emotion if we want to earn more profit. We can use small amount in real account. And do not forget that experience is best teacher for us. I also try to learn from my trading experience with FXB.
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Re: Controlling Emotions

Postby CaptivatingAyesla » Thu Aug 10, 2017 5:34 am

Day traders must know how to control their emotions when trading. The slightest gap in controlling your emotions will ruin your hard earned profits overnight. Don't be affected by greed and fear. Trading requires focus and you must be well prepared mentally and physically before trading.
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