Topic: How to get rid of emotions when trading - page 14. (Read 3936 times)

You can't get rid of your emotions when trading, it's impossible.

If you're getting too emotional about trading and keep making emotional mistakes, like closing a trade too early, placing trades out of anger, not setting a stop loss etc, you need to lower the amount of Crypto you're buying.

Your emotional state is tied to the amount of money you have at risk.

The more that's at risk, the more emotional you're going to be about losing it, and the more likely you are to make mistakes.

Think about it like this.....

If you had 1 million USD and had invested $2000 in Crypto, would you care about losing the $2000?

No, right, because $2000 is basically nothing when you have a 1 million.

But what if you only had 2000 and had put 1000 into Crypto, would you care then?

Of course you would, because if you lose the 1000 a significant portion of your money would be gone.

So the key to lowering the effect emotions have on your trading is to buy less Crypto.

Good plan... I think the best thing one  can do is to trade with a small amount of money and think of it as a gamble (5% or less) of your worth. The bigger the risk, the more attachment you have to the decision which definitely involves your emotions.

Our brain is hardwired to go into a fight or flight mode under stress, resulting in emotional responses like greed (taking too large risks), anger, fear (panic-closing) or fear of missing out. While this is a good thing when fighting lions in the savannah, it is a horrible thing when trading, and you need to make smart decisions and keep to your plan to keep making profits.
This topic will focus on how to get rid of emotions while trading, or at least make the best decisions which are not based on emotional responses of our ape brain. So how can we achieve that?

1 with good preparation
2 with checklists
3 with process orientation
4 with active emotional detachment

Good preparation:
If you watch a Football game or a Boxing match usually the team or player wins that has done the better preparation. The same goes with trading. Accumulate knowledge about the subjects of trading as much as possible. Start with small amounts and small leverages until you really know what you are doing. Be consistent, create good habits early on and keep them up. Make sure that you are mentally fit, live healthy, eat well, sleep enough and regularly, and exercise enough. Have a schedule. Track your preparation, track your results and analyse them. What were mistakes you could avoid in the future?

Checklists:
When things go down and away, it is always good to have a checklist. For example: surgeons usually have checklists that prevent them to go off the rails while performing a complicated procedure. Their checklists makes it absolutely clear in which order they need to perform what step, which frees up mental brain power for the actual process. So from your past make checklists what made your trades profitable and focus on those kind of trades that have done well in your past.

Process Orientation:
With the checklist, we should be able to make good trades more often than not. All we need to do now is focus our metal brain power on the process and not on the outcome. As we have built enough expertise and a checklist that we follow, we focus on rules and our discipline, not on the outcome of a single trade, because as we all know one trade can always be good or bad, independent of how well it was thought out.

Active emotional detachment:
There is something called Tilt in Poker. Some players will actively try to insult players after bad beats to make the go tilt, or "emotional". This will result in very bad decision making. Maybe you remember Zinedine Zidane in his very last World Cup Game, head butting the italian player and getting sent of the pitch with a red card. The worst possible outcome. TILT.
If you still feel like you get emotional about trades, there are a few things you can do: Lowering your margins, lowering your leverage, take a break, breathing exercises, watch your favorite series or listen to music. Get a little distance to your trades, before continuing. NEVER trade on TILT.

How are you dealing with your emotions? Anything to add or to take away from this?

If you still feel like you get emotional about trades, there are a few things you can do: Lowering your margins, lowering your leverage, take a break, breathing exercises, watch your favorite series or listen to music. Get a little distance to your trades, before continuing. NEVER trade on TILT.

How are you dealing with your emotions?

I do agree with the points you are making, but still it is hard to deal with emotions when trading, honestly you have chill more, and not risk everything.

That is very challenging especially when you never knew how market works and still have doubts on crypto. We knew people will easily get loss their mind when market goes down and do panic selling. I've never think it would be stop since we have different in views and u. understanding.

I think we need to tighten our mind and feelings when trading. Don't let our emotions dictate what we will do. And don't easily go with the flow in the market.

You simply can't get rid of those emotions. That's the honest truth. Emotions are part of who we are abd you simply can't do a keep it away. The only thing you can do is to manage the disappointment you would feel. Naturally, you're bound to have feelings. However, to minimise the feelings, you should do well not to become too attached or sentimental about a particular Cryptocurrency.