with a good preparation and some knowledeg about how the market is going on, and of course, to listen to some good music that distracts you
Topic: How to get rid of emotions when trading - page 23. (Read 3936 times)
If you are day trader,then you are forced to sell with minimum profit at end of the day.Now a days,day trading is not working in good manner.If the price is increased once in a day,you can sell with some profit.But,now the price of bitcoin is stable one.It's better to trade for the long term profit.If you want to control your emotion in trading,you should inverse independent money which is not required for your life support.
I think it just requires experience, sadly a lot of people learnt how to hodl exactly before the crash, hopefully the market will turn again.
There is no way for you to get rid of your emotions, every trader who see's their coin that is melting its price will be feeling hurt and that is when the dumping of market prices started.
For me it's just impossible, maybe I can just cut a small amount of my negative feeling, but not more...
In theory we should proceed in a rational way, and not be overwhelmed by emotions, using strategies that minimize losses and maximize earnings.
In practice, especially now, panic is always lurking.
Trading seems deceptively easy when you think about it but it is not, people think they are going to be able to remain cool when they lose money and a quick look in the forum will tell you that people are anything but cool about losing their money in the current bear market, this makes them lose more money than they should, and where all that money goes? To exchanges, experimented traders and whales. In practice, especially now, panic is always lurking.
Emotions start bubbling when an unforeseen situation arises. To avoid emotions affecting the outcome of a trade, one must prepare very well for trading, think through all possible situations, think through actions when they fall or grow. In this case, emotions will sleep.
in fact it is very difficult because when trading fear, anxiety, worry all become one and I am very aware that everyone will surely feel the same, until now all I can do when experiencing like that is just confidence and stay calm.
Emotional trading can blow up your account so you must get your emotions under control.
That is something natural, and one cannot get control over his emotion so easily, may be it can only be possible if you will spend some time in market. If you are new and do not know too much about the nature of the market, you will remain as careless and will never try to control your emotion, but with the passage of time you may be able to control your emotions.
I believe that one can definitely trade without emotions as far as he has some backup plan for his daily routine. Therefore it is recommended again and again not to invest more than the loss-bearing capacity of the investor. Psychologically one must be able to stay disconnected from the affection towards the capital while trading and take the higher risks. Experience of trading would give the ability to deal with multiple situations even in the worst case scenario.
At the end of the day no one is going to get rid of emotions entirely. Its mostly about controlling them. Best way is to have a strategy and follow it.
It's really hard to get rid of these things in trading. I, was once a victim of my own emotions in trading. It's so hard to fight back against it. But try to step by step lessen those things. That should help it.
Being emotional as one gets involved in trading is normal. But allowing such emotion to take over the decision-making is destructive. Hence, one has to think wisely to minimize getting too emotional negatively. Experience and learning in trade have a huge role on this.
I think it just requires experience, sadly a lot of people learnt how to hodl exactly before the crash, hopefully the market will turn again.
About that you can read in my new book it is called "Now way", lol. I think this is literally impossible because we all are humans, we cannot get rid of emotions completely.
This is very useful. My friend backed out of Crypto just at first attempt. Well, trading isn't for everyone however any business man should understand how to manage his emotions in time of loss, he or she should understand that it does happens and in gain, he shouldn't be carried away in fantasy.
This is purely psychological. Emotional control applies not just in trading but to every aspect of life.
A student who fails an examination and is not able to control his emotions, work harder and take on the course again is likely to fail again because emotions promotes fear.
This is purely psychological. Emotional control applies not just in trading but to every aspect of life.
A student who fails an examination and is not able to control his emotions, work harder and take on the course again is likely to fail again because emotions promotes fear.
You cannot get rid your emotions when trading because emotion is already there for a long time and the only thing that you can do in order to minimize the dominance of emotion is to have a self-discipline and also to have a strong plan or strategy that you can follow in order to trade very well and have a lot of successful trades.
Yeah, we are not robots, emotions that affect the trading process are one thing we can not avoid, everybody always has weaknesses and fears in trading, eliminating completely is impossible, and as you say, what we can do is to limit bad emotions through a number of methods. But better, I think traders should consider emotion as a friend of ours, we should get used to it and understand it more clearly, and when we do that, we will feel that every situation in trading is normal, although emotion will still exist and appear when such situations occur but we will stabilize very quickly, instead of embarrassment or panic
The real problem are not emotions (you can manage them somehow), but the fact that sometimes they push us to take bad decisions.
So, the only secret is to plan a strategy with a lot of "if-then", and then respect it religiously.
Easy to say...
So, the only secret is to plan a strategy with a lot of "if-then", and then respect it religiously.
Easy to say...
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?
Emotional control in trade, this is a problem many traders are interested because it has caused a lot of difficulties in the trade. Thank you for the hints, I feel it is quite convincing. However, to succeed is not easy, especially for the newbie. Theory is one thing, but practice is another, I have tried many ways but sometimes I still feel emotionally determined. In order to solve this problem, I think we need to train regularly for a long time. This is just my opinion 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?
It's really hard to get rid of these things in trading. I, was once a victim of my own emotions in trading. It's so hard to fight back against it. But try to step by step lessen those things. That should help it.
Yes it is difficult to get red from emotional attitude, if it is your habit and if emotions are there in your nature, i think if a person get some experience in market and spend a lot of time in the market then we can expect that he can get control on his emotion a little bit, but still i am not too much sure about it, because it is natural and very hard to get control over it. 
Doing other activities is a way that I think is effective enough to remove the stresses caused by our trading activities which usually take a while. Playing games, listening to music etc can refresh our minds from the saturation that exists. So when we return to trading activity, hopefully, we can control our emotions.
You cannot get rid your emotions when trading because emotion is already there for a long time and the only thing that you can do in order to minimize the dominance of emotion is to have a self-discipline and also to have a strong plan or strategy that you can follow in order to trade very well and have a lot of successful trades.
Yeah, we are not robots, emotions that affect the trading process are one thing we can not avoid, everybody always has weaknesses and fears in trading, eliminating completely is impossible, and as you say, what we can do is to limit bad emotions through a number of methods. But better, I think traders should consider emotion as a friend of ours, we should get used to it and understand it more clearly, and when we do that, we will feel that every situation in trading is normal, although emotion will still exist and appear when such situations occur but we will stabilize very quickly, instead of embarrassment or panic Jump to: