Topic: Importance of emotion while trading (Read 913 times)

I know all this advice is important, and emotion is a villain in every single situation. Impulsive and immature emotions cost you a lot of money. That's because even though the market is driven by people's emotions, the real strategic traders play well in their situations, and they make a huge profit from that. Trade from your safe zone until you can handle your emotions very well; after that, you can lead the play. There is one thread on this site that says to "pause the moment" when you get confused, emotional, or whenever you need to just pause. It's great advice I saw because pausing is a solution that someone who is overwhelmed with emotions needs.

i can't sweat how many times i missed best opportunity of either buying or dumping the coin because too affected by emotions, but when i tried to manage my emotions, just thinking logically without any influence of emotion, i've scored so many profits from spot trading alone that I think the different is indeed there.
emotion is what causes many people out there to fomo and losing money also to panic sell and also losing money. its just overall the main reason why some people might take the shittiest decision because they just too influenced by their emotion even more frequent occurred with those newbies that don't really get used too much with the circumstance of the market I think they are the ones that always gets affected psychologically by every market change.

With good control of your emotions chance to benefit from this venue of business is possible,  yes you are right,  we don't need to be like robot or like a bot which only execute once the set position has been reached.  We have human intelligence which is far better in terms of judging the situations,  though most of the time emotions  put us in a big risk but having the right discipline we may use it to generate decent profits.

6. Dont be too optimistic
7. Dont anticipate positive results
8. Dont really make yourself that too confident on your  trading positions
9. Having a selling point or buying point
10. If you do have a losing trade then learn from it then move on

Emotion is really that indeed a huge factor when dealing up with trading on which this is something that could really affect you greatly if you dont really have that kind of self control.
You would really be able to hardly be able to control yourself if you dont have  that kind of discipline or moderation on things that you are dealing with.
Experience does count because the more experience you do have the more control you could be having.

It is really just that there are people who cant really be able to control themselves on times that they do encounter some tough situations.
Its inevitable but once you do able to have a good grasps on something then it would really be just that fine.

Adding to what you have said,
Avoid excessive information overload which comes from trading chat groups, news and these are capable of triggering our emotions thereby influencing our emotions while trading. Secondly, if you have a trading approach, try to simplify it as much as possible. And lastly, let your concentration be on one market only. Focus on understanding the specific dynamics and behavior of that market. It is only when your focus is all over the place that your emotions will get the best of you as a trader.

It is important for all traders to control their emotions before starting their business. Those who trade in the crypto space first control emotions and then profit. Failure to control emotions will inevitably lead to losses, which is why this matter is most important in business. There is a lot of volatility to be faced in the crypto market as the market is not in the same position all the time and that is why many traders face losses by investing. When one invests Bitcoin or other currency in the market, if one is faced with volatility, if one cannot control his emotions then he will not be able to profit. That's why emotions should be controlled first and investments should be made later, only then it is possible to succeed and profit is possible Patience is the key to all success.

We can't rid of our emotions but we can control them and the best thing to deal with when it comes to trading or else, we lose.
Because we don't need to feel like a robot who has no feelings and emotions in order to succeed and I know these pro traders haven't done it. Well, the most important is that we manage to control it in the right way. In fact, it was not just our emotions that could be a reason for our losses and failures, it is also how we choose coins in trading and the platform we use.

I think what OP meant when he said "not to expect too much profit" something like that is in futures trading.

Most of the newcomers in the trading world, wants to engage instantly in futures trading using a very high leverage to gain big profits in a short period of time, but what happens most of the time is the exact opposite, they lose a lot of their money because of their sudden actions without any plans at all. This kind of scenario always comes from a social media post, bragging their successful trades in futures, so some people thought that they could do the same when they start trading in futures.

Good point,  emotions most of the  push you to something that you may regret after, though sometimes emotions helps in terms of getting bigger compensation from your trade and sometimes its also lead you to lessen or avoid making huge losses, but not all the time that instinct will be true  and with just one mistake you'll be able to ruin everything.  Better to trade with knowledge and right sets of skills and lesser emotional domination.

Every decision that is manipulated by a strong emotion will not be good in the long run. It might only be feasible at first but it will never work in the long span. That is why to free yourself from wrong decision making, then never trade or invest when your emotions are not stable. Do not be greedy but learn to trade and be open for losses because that's what trading is all about, not only exclusive for profits but losses as well. When you do that, the risk to lose becomes lessen as you dont get pressured trading and expect instant profits.

I am not sure about your trading skill but I am really interested in your writing skills. A long sentence like this makes it difficult to understand the main concept of the comments. There is no offense, just a piece of advice.

You are right about the diversification. A trader doesn't need to keep his trading activity limited to bitcoin only as there are other markets where lots of money inflow happens. A trader's goal is to make a profit and it doesn't matter which coin he is using to do that but if someone is a long term holder then he needs to be careful when doing diversification, as most of the altcoins are scams or won't perform well in the next bull run.

As a trader there is no way one can limit themselves to only Bitcoin and a traders portfolio will surely have multiple assets but it's upto the trader how he reacts the market trend and to be honest just like others even I have made mistakes while trading like sell off or buying in immediately once pump/dump happens but ended up having opposite results where I ended up losing either because the coin which I bought due to pump got dumped or the coins which i sold due to dump had regained the value and started moving upwards. We should rather learn to read candles with multiple indicators and go with technical analysis rather than just by looking at short term market movement, one should make hard and fast rule about do's and don'ts when it comes to trading and strictly adhere to it regardless of market sentiment. All we need is a proper SOP (standard operating procedure) for trading which will help us to keep emotions at bay.

I don't think emotions has any importance to benefit us as a trader in the market. Those that had been trading in the market that have problem of emotion easily create loses for themselves due to weak confidence to go on a trade they have finally analyzed. Emotion can make us to easily lose out on trades because of weakness to take trades, analyse the market and confidently trade in the market. Professional traders are always careful with their emotions so that it will not make them to take wrong trades or leave the market too early.

And I think a trader will never be missed from the name fomo, fear or anxiety will always follow them because this is an activity that is difficult to predict accurately, so maybe it's only natural that some of them are always fomo in their trading. Quite agree with your assumption, basically trading is an activity that has a fairly high risk, there are many things they must prepare when they want to engage in this activity, and one of them is as you mentioned, if they do not have a strong mentality to face all conditions on their journey, especially the possibility of risk then yes we can be sure they will not be strong in withstanding the pressure in such conditions. While on the other hand this profession requires you to be able to remain calm when involved because your calmness will have a very important role in terms of making truly appropriate considerations, besides that you have to eliminate your emotional overload because of course if you don't have good self-control over it then I think it is very possible for you to do uncontrolled things that cause the situation to get worse.

Although it is quite recommended but in my opinion it is still quite high risk when we have to decide to go against the trend, they must really consider in terms of looking for indications that the percentage is quite high when you want to go against the trend, if you are very confident with the analysis that the price will really reverse according to what you expect then go ahead, but yes it is quite difficult to be able to get a strong mentality to do this way.

Emotions are just one of the components for successful trading, and discipline and good strategy are much more important. If a trader does not understand when he needs to enter a trade and when to exit, then he will do it at random - this is one of the most important points in trading. And the lack of this understanding will entail losses and, of course, unnecessary emotions, but this can be avoided, or at least minimized.

thats basically just FOMO its why people with weak mental consitute should never trades because they'd easily get influenced by external factor and easily swayed emotionally into doing something that the whales really want him to do.
thats why its sometime advised to go against the trend, like some experts out there have said, buy when market is in fear and sell when market is in greed as simple as that but actually quite difficult to follow if im being honest.
after all, such thing requires strong mental capability to go against the trend quite literally, i've tried once and its definitely harder to keep calm when we are buying meanwhile everyone else is dumping.

  As a trader here in the crypto field, our aim is to make a profit. Now, if you don't have enough ideas here, we can still make a profit while we're still studying it, and we can do something like this by buying and holding it long-term, not short-term.

  It is important that we gain knowledge about trading before we jump into the so-called day trading activity. In this way, we can help ourselves become responsible traders if we can also make proper use of our emotions in reality.

It's all about learning from your experiences that make you better at what you are doing. If you make a mistake and learn from it, the mistake isn't wasted and whatever you've lost is the cost for you to learn something useful, but when you make the same mistake again, it means that you have lost the money and also didn't learn anything from it and that is a bigger loss, in my opinion. So, those who make mistakes, learn, and grow, tend to be successful one day.

A lot of newbie traders make such mistakes, they get emotional and make decisions that cause them losses, some of them get disheartened and leave trading forever, and others will try harder and learn from their mistakes and stick to gaining more knowledge and experience over time, and those are the people who will become effective traders in the future.

You should really be that making yourself that adaptive or something that do talks about being versatile when it comes to various situations on which on the time that you would really be that encountering new things and able to commit out mistakes, then it would really be that impossible for someone not to be able to notice it out and learn something from it. We know that experience is the best teacher and on the time that you are really that indeed experiencing some mistakes or errors then it would really be just that normal for a human to make out such adjustments on next time that you would really be able encounter it. It is really just that a matter
on how a certain individual would really be making out adjustments. We know that emotions is the greatest factor that could really affect someones trades or whatever they've been dealing with, we are just simply humans and having that those common emotions basing up on the situation or condition that you are really that experiencing.

If you do lack knowledge and experience then for sure the reaction would really be somehting that would really be off or would really be resulting into further damage or something that simply talks about mistake.
Overtime, as you do get going then you would really be able to eventually to make out adjustments if needed.

Unfortunately there are way too many people who trade with unstable emotions and then they do end up blaming the method, or bitcoin itself for their mistakes. The worst thing a person can do is not realizing the mistake they made and blame others for their misery, accepting your own fault at your own mistakes is the first step at becoming better and unfortunately not many people do that, it should be noted that it can't be sustained and they will make more and more mistakes and lose a lot more money with time if they are not careful.

This is why it is a lot better if they could just focus on what they can do better, and what they have done wrong, it would definitely benefit everyone and give them a greater return for sure.