Trading with Emotions

[sanju005ind]

No system or technique matters until one can understand ones emotion.Sorry can't control emotions but accept what you are.Trading will tech you what you are within a very short span of time.

 

[suri112000]

When we want to talk about our brain, it is prudent to say there are two brains. One is intuition and the other is deliberate. We do our daily chores out of intuition. Infact, the decisions taken by intuition in our life are almost correct and accurate. When a problem is encountered, the first one to react is intuition.

2 x 2 = ?

we donot take even a split second to answer this question. Our intuition is active here.

84x256 = ?

Did your intuition answer it? No for many of us. The intuition came in but it left it. Can we at all answer it. Yes, we can. We need to put in some efforts to answer it. That is ... deliberate brain is to be called for. Take pen and paper, do the work and answer it.

Deliberate brain is the master who is lazy and silent. Intuition is the servant of deliberate brain. Recall how did you learn bicycling. Every aspect of learning involved deliberate brain activity. Deliberate brain weighs every action and constructs the activity. The process involves breaking our knees, falling numerous times, trying to balance. It takes its own sweet time. Finally we learn completely by lot of practice. Once we master it through deliberate brain, the task of bicycling is handed over to intuition. Now, we donot use deliberate brain to do cycling. We do it pretty easily. Now we donot need any deliberate attempt.

Similarly, in trading......when a trading decision is to be taken, intuition comes into play. Most of our trading decisions are taken by intuition. Intuition is a servant of deliberate brain. We did not practice trading through deliberate brain. Trading is not practised well by deliberate brain. When it is not practised, the process of trading is not transferred to intuition. Then why intuition acts in trading. Intuition acts as if the practice is transferred to it by deliberate brain. But in reality, it is not. This is the actual reason why most of traders fail in trading.

 

[lekopan]

It turned out that the most difficult thing in trade is to deal with your emotions and to take both good and bad deals' results. it was reall difficult to contorl my emotions that were flooding me when I was loosing, but with time I learned how to keep myself calm.

 

[Fistig]

It's not always easy to control your emotions, in trading especially, when you get a very high stress level. In my opinion, greediness is the most destructive emotion as it makes people make unbalanced decisions.

 

[Osmos]

It is suicidal to trade with emotions. The emotions overcome the mind and the senses. Mainly, it is greed and fear. You need to be strong enough and don't let them control your judgement power. This will be easy as you gain experience.

 

[lekopan]

Man is an emotional animal. But in forex, emotions will kill. You need a rock-solid attitude with nerves of steel to have aby chance of success. You will be broken if you have a fragile mentality. So, before entering into gorex trading ask yourself if you are ready enough to withstand the market.

 

[Vijay349037]

Thanks for sharing Your thoughts on trading emotions. It is must read for the new traders

 

[Vijay349037]

Extracted from the book "Why 95% of traders loose money" for the benefit of members.

TRADING WITH EMOTIONS

Lets break down the timeline of emotions that you are taken through as a
trader.

In the Beginning: Happiness

Nothing feels greater than successfully getting into a market in the right
direction. Whether its long or short, once you have picked a side and you
see the market follow suit, you begin to feel smart. Trading is easy, and
you begin to wonder what you were thinking. Heck, you didnt even need
to buy the program.

It is often said that the worst thing that can happen to a new trader is
to have successful trades in the beginning. This sets up unrealistic expectations for themselves and the market. It paves the way for future disappointment and frustration.

When I have dealt one on one with new traders and they have succeeded
early on, their sense of euphoria quickly converts to arrogance, and they slide into the second phase.

Next stage in the next post.

I like the way you have explained it helps a lot in understanding the trading psychology.

 

[abhisharma]

Never trade with emotion. It will ruin you. You have to leave your emotion behind before trading.

 

[prabh21]

Yeah. I believe someone who is too emotional should either stay away from trading or must learn to keep emotions away if he actually wants to achieve something in trading.