Topic: Importance of emotion while trading - page 5. (Read 825 times)

Trading is not a simple task so when a trader is trading he has to take care of various things. A trader can suffer the most when he plans to trade emotionally. We often see some traders get emotional about a coin without doing any research. They invest more than they need. They get the idea that maybe they will make a big profit through some of these. But they get a sense of that when their demand is not met after taking a trade. All the points mentioned by you should be considered by a trader while trading. A trader must avoid emotional thought and should research well before taking a new trade otherwise he will suffer.

Yes, controlling your emotions is very important.
Trading is more than just money
Trading is risk, strategy, emotion, discipline, execution, persistence.

A trader's goal is to make the best transactions, not as many.
So traders should not be enslaved by emotions.
Control ourselves or those who control us.

I can attest to that, though I cannot consider myself as trader nowadays.

and that is why we must be ready to risk and wait,
the more you wanted to earn easier is the more you will fail, better to understand those aspect before completely relying in this market.

I love all the advised strategy , but what I see reflects in all is the last part in which "Learning to Stay Cam and Control Temporary Emotions"  as this applies to all varieties of investments.

Emotion is very crucial in trading and that's what differentiates humans from bots or scripts. Whether we're winning or losing, there has to be a battle of controlling our emotion. Otherwise, it makes a mess of our psychology. While the winning part emotion brings us excitement and that feeling of "I've arrived" which makes many throw caution to the wind or the losing part that causes us anxiety and loss of confidence in our setups, both should be controlled to the nearest minimum. This is where professional and profitable traders tend to have that upper hand over amateurs. Pro-traders deaden their emotions while in trade; whether winning or losing. With that, they're able to have a clear head with things that happen on their charts while still in trade.

It is indeed difficult to trade without emotions, based on the book I read, trading without emotions is difficult for humans to make decisions. No fear, no greed. So it is important as a trader to be able to control your emotions.

Trading is not just how much you get in a short time, but how consistent the profit you get is, increase your capital and reduce your target.

Because successful trading focuses on progress, not the end result, the goal can be achieved well, we can even be happy if we enjoy the process. Don't hold a grudge against the market if you have made a profit, don't be greedy. If you lose, don't want revenge, don't be trapped by a target that has no ending. Because our biggest enemy is excessive expectations of betting.

How to trade on Bitcointalk forum?  I think you meant that many members of the bitcointalk forum trade crypto

Yes and when a trader gains in trading he improves financially so it is normal for emotions to work in him. And if one does not have emotion, he will have no interest in money and will not be motivated to trade.

The crypto market is always volatile and the price changes rapidly due to which it is possible to profit by trading here. Here emotion can help a trader to achieve good results while excess emotion makes losses more than gains.

Your points are valid but the most effective way to control emotions is to ignore any type of hype. and consider trading as a part-time source of income while engaging in a full-time activity like business, job etc. then the emotions will  naturally be under control

Your emotions should be always under control as the whales are experts at taking advantage of them, after all it is often mentioned that the markets are influenced by fear and greed, and if you fall victim of a single one of those emotions then you are lost.

As if you get too greedy then you may use too much leverage or hold a position for too long, while if you succumb to fear then you can easily sell too soon and miss an upward movement that could have made you a lot of money.

Anger, pride, emotions, these don't really go with trading. When it comes to trading, you have to make decisions based on emotions, and you have to make informed decisions and arrive at a decision after a hard analysis. A small mistake in your decision can cause a big loss to your business. Everyone talks about controlling emotions in business here you talk about using emotions although your topic discussion is different. The more calm you can make the decision, the more likely it is to make the right decision. Let me give you a simple example, for a long time you are trading at a loss, so if you get angry and sell your trading at a loss thinking that it is on your forehead, it will never be good for you. Therefore, these anger, pride and emotion should be left aside and the right decision should be taken thinking about the business.

What makes novice traders lose a lot of money in trading is when they have too much confidence in a coin. In fact, many people can't control themselves and forget about diversification. They go all in due to the hype and think they can get rich just by investing in certain coins. So it is true that this kind of thinking must be eliminated. Both in investment and in trading.

And sometimes another thing that makes a beginner experience losses due to not being able to control their emotions is when they see a hype on a coin and the coin has experienced a high increase and the person actually feels afraid of being left behind or what is usually called Fear of missing out (FOMO). All of this happened because of not being able to control emotions. So this is where controlling emotions is important in trading. And actually what you said is a general thing that we must always remind beginners who don't have much experience in controlling emotions in trading.

Definitely, never should open a position with a single cryptocurrency and expect serious profits from this position alone and shouldn't dream of getting rich with just this cryptocurrency. Identifying potentially 3 or 4 TP points by providing technical analysis and gradually closing the position at these points will help to get more efficiency from the position and will help to evaluate opportunities from all price movements that will potentially occur in the short term. In addition, it is very important not to establish individual ties with each position and to minimize potential losses by analyzing the necessary price levels in case of a possible reverse movement and creating an SL order. On the other hand, it is very important not to enlarge the position size without confirmation by technical analysis especially in case of a loss in a position and if these positions are opened with someone else's suggestion it is necessary to support this by doing our own research.

So, it is very important not to act emotionally when trading, not to stick to one position and definitely not to act in a greedy way when detecting important levels such as TP-SL points. It is important to remember that controlling emotions when trading cryptocurrencies is at least as important as the analysis done to determine the trading level.

I think it's actually wise to always rely on yourself for trading. But not everyone is good at this. You didn't know everything when you were new. You have learned today by any means or by taking help from someone else. If he is also a newbie then he can learn from anywhere. And for that you can take the help of a bot or an expert. But it is not good to be dependent on others forever.

What is most certain is that when we can manage our emotions well, then at least we are in good condition to make trading decisions. On the other hand, when we lose control of our emotions, what happens is that we easily become panicked, angry, disappointed, hopeless, and ultimately decide everything without thinking, without careful consideration. As a result, this will disrupt our focus and also our efforts in trading, even ending in losing money easily when we really can't control our emotions when trading.

Apart from what you have explained in the list, there are actually basic things about controlling emotions, namely how we can also control emotions in everyday life. This definitely requires a certain process, practice and experience. Sometimes, we have to deal with various things first so that our emotions are more mature and so that we can really start to focus on controlling our emotions. especially in trading, experience will really help us to better understand ourselves and be able to train to control our emotions. And this happens if we really want to learn. If not, it's the same.

You are right - controlling emotions is not as easy as when someone mentions the theory. Traders tend to have difficulty controlling their emotions when market volatility does not match expectations – fear of loss is the cause. They are traders who know that volatility is an integral part - but when their emotional control is not good and their psychology is not good then it will cause them to make wrong decisions.

Trading psychology needs to be studied and also practiced. They need to train themselves to avoid greater losses due to poor self-control. Of course they need time – but I'm sure if they study hard it will have a positive impact on them.

The tips seem perfect if executed well to reduce trading emotions.
But have you applied them first before writing this?

Because what I know is that it is not easy to control trading emotions, even if someone has a long experience.
Emotions can unconsciously be unstable due to the influence of some problems or inappropriate strategies.

It is easy to give such tips, but it is difficult to implement because the real experience will be different from the fairy tales that are made everywhere.

If you are an experienced trader, you will give other tips not just emotional control.
Doing some technical analysis will be quite helpful.

Yo,

The best advice I can give to manage overconfidence bias is to maintain a trading journal. This is a tool where you document all your trades, including your reasoning for entering and exiting a position, the outcome, and any mistakes or successes along the way.

It is very important even in my opinion for us to be able to control our emotions in trading.
There are many theories about controlling emotions, but it is not that easy when we live it because in the trading journey that we undertake, many things happen that are beyond our previous expectations, so these emotions are difficult to control.
Emotions are internal, so I think there is no special theory that can be learned other than building awareness of ourselves and learning about the experiences we have gone through.

What trading needs is a concentration and also an ability to interpret the market, so therefore what I want you to understand in trading and most especially the profit and loss aspect of trading is that, in some extent some traders use to be greedy in their trading, they always  want to accumulate their profits before cashing out, some of the traders today that get lost into trading the one of the major factors that lead to loss is as result of accumulating a profit.

Emotions of a greedy trader will make the trader to continue losing except that its a process whereby the trader has undergoes a different loss through trading, that is while I define trading as a continuous process, because the more you practice trading the more you learn more scopes of trading, and the more you loss the more you understand your weak point in trading.

So it's nice as trader not to be greedy and not trade with you can't afford to loss, this are things a beginner in trading industry have to know about trading, its very obvious and understanding that trading have to do with risk and secondly profit and loss in which a slight mistake in trading can make you to lose all you have gained

So what trading needs is consciousness, precautions, observation and concentration in order to actualize your target, because any trader have a target and the target is profit either higher profit or lower profit, so for you actualize it need to have the four words I listed in your mind, because when trading you don't need lack concentration or deviate from the angle of parameter.

I will not subscribe to this idea because I believe that we all have to start somewhere. I still believe on the comments I qoute below concerning risk management when it comes to trading. Risk management is a key skill to develop as you become more experienced in trading. In the meantime, one of the best things you can do is educate yourself. There are plenty of resources out there to help you learn about different trading strategies and risk management techniques. Trading bots can be helpful in some situations, but it's very necessary to understand the potential risks and limitations. As a newbie in trading, it is best for you to focus on learning about the markets and developing your own trading strategy before considering the use of a bot. Some of them are not even effective as claimed and can misbehave due to bug. It's not always about the outcome but the process matter too.


You're very correct and I completely agree with you. Risk management is definitely a key component of successful trading. Without a solid risk management strategy, even the best trading ideas can turn into money losing trades. As a trader, it's necessary to set limits on how much you're willing to risk on each trade and to stick by to the limits. One way to manage risk is to use stop loss orders. This allows you to limit your losses even if the trade goes against you.

Hello fellow crypto enthusiasts,

I wanted to share my thoughts on the significant role trading bots play in the world of cryptocurrency trading. As we all know, emotions can often cloud our judgment and lead to costly mistakes when it comes to making trading decisions. However, trading bots offer a solution by executing trades based on predefined algorithms and strategies, eliminating the influence of emotions.

Here are a few reasons why trading bots can be beneficial:

1. Eliminating Emotional Bias: By removing human emotions from the equation, trading bots ensure that trades are executed based on logic and predefined parameters. This helps avoid impulsive decisions driven by fear or greed, which can lead to significant losses.

2. Constant Monitoring: Trading bots can tirelessly monitor the market 24/7, analyzing price movements and executing trades accordingly. This level of vigilance is nearly impossible for a human trader to maintain consistently.

3. Speed and Efficiency: Trading bots can execute trades at lightning-fast speeds, taking advantage of even the smallest market fluctuations. This enables traders to capitalize on profitable opportunities that may be missed by manual trading.

4. Backtesting and Optimization: Trading bots allow users to backtest their strategies using historical data, enabling them to fine-tune their algorithms for optimal performance. This feature helps traders identify and eliminate potential flaws in their strategies before risking real capital.

5. Diversification: With the ability to trade across multiple exchanges and various cryptocurrencies simultaneously, trading bots offer diversification opportunities that may not be feasible for manual traders. This diversification helps spread risk and increase the chances of consistent profits.

While trading bots can undoubtedly be powerful tools, it's essential to remember that they are not foolproof. They require careful monitoring and periodic adjustments to adapt to changing market conditions.

I would love to hear your thoughts on this topic. Have you personally used trading bots? What has been your experience with them? Let's discuss the pros and cons of incorporating trading bots into our cryptocurrency trading strategies.

Looking forward to your insights.

Most times we mistake ignorance and negligence for emotion. As long as we are living, we act every second with emotions. Humans are not emotionless. So, what happens most times is not lack of emotions. It could be negligence or other factors as

• Greed
• Impatience
• Inability to manage risk
• Lack of trading skill
• Ineffective trading strategies

But, we most times squeeze all these into emotions which is not very nice. It is high time we began to differentiate.