Are you emotionally affected by your profits or losses?

Both losses and profits have the ability to induce emotional reactions in us. A loss can cause us to want to take ‘revenge’ on the market and try and ‘make back’ the money we just lost. A profit can cause us to become overly-confident or even euphoric, which can cause us to deviate from our trading plan and take a trade that is lower probability than what we normally would take.

We are only human and there’s no way we’ll ever get away without feeling anything whenever we face a loss or a gain. But we can be in control of our action towards any positive or negative feeling that arises in regards to losses or gains.

It’s hard to master our emotions especially when it comes to trading. But if you can then I’m pretty sure you’ll be achieve great things with forex if your system works of course :smiley:

And can you just imagine how difficult it is for a woman to control emotions? :18: At least I hope that when I get a hold on my emotions regarding forex, that will reflect also on emotions in real life… #cold as ice hahah :cool:

All traders emotional will totally affected by both loses and profit. No one can run out from these ring…
So, we have to manage it…

It is very much normal to emotional when there is a loss or profit . But in forex it is how you control it that matter either for positive impart or negative impart.

I think there’s also the case where traders expect instant profit. This is in the sense that the trade is supposed to go your way as soon as you place it because you expect it to when you have done your analysis right. Often times, this is not the case of course.

It is not how you feel that decide your trading outcome, it is how you respond to those feelings that will make you a make or break trader :slight_smile:

But, to answer the question, YES I get emotionally touched, not affected…or at least don’t want to be and try hard not to.
As long as you trade with your knowledge you should be good, feelings aren’t for trading, they are just a indication of how your trading is doing :wink:
Trading is a mind game from the first day you step into it…

I’ll bet even Warren Buffet had sleepless nights decades ago :wink:

I think everyone gets more or less emotional when trading, this is why I prefer technical analysis to fundamental analysis. If you are going fundamental - find an analyst who does NOT trade. :57:

Stress is one of the emotion you may feel while trading.
Trading stress is stress that is caused by the act of trading. For example, the fear of losing money can place a trader under significant stress. Perversely, trading stress only compounds the original problem. For example, if a trader is having difficulty making a trade management decision, the stress that ensues will only make it harder to make the decision, and will almost guarantee that the decision is made badly.

The solution to trading stress is knowledge and experience. Knowledge gives a trader the ability to trade well, and experience gives a trader the confidence to trust in their knowledge. When a trader knows that they have the ability to be profitable, and they also have the confidence to believe in themselves, it is much easier to overcome any stressful situations that might arise.

Whether you loss or make profit every trader can be emotional. When on the winning side we need not to be over excited and when on the losing side it is not a time to quit or feel depressed.I think our emotion should be in moderation.

Personally I have emotions about any trade while I am in them as I obviously want to see it be profitable but in no way does a profit or a loss affect my next trade.

When you have put on enough trades you start becoming detached.

New traders find it difficult to control their emotion when they run at a loss or made profit. Some trader tends to take revenge on the market due to the fact that they ran at a loss while some always feel frustrated trading it. Traders should always know that forex is a risky business and that everyone is exposed to loses at any point in time.

“Feelings do not sabotage trading; unwillingness to feel them forces Fred to set up dramas. Consider feelings as friends, and look for their positive intentions. Promote the flow.”

http://www.seykota.com/tribe/TT_Process/

I am a pro now. I am affected by it. The one who doesn’t is lying or is a com0lete idiot.

We all traders are in emotions having profits or loss . Profit makes a trader much confident he expect more in next trading. In loss too they make emotional decisions to recover loss , That is why a good trader remains away from emotions during trading.

I try to avoid situations of large losses. It can led to a nervous breakdown. And when I get a profit, I try not to puff up. In general, you need a balance here.

For me emotionally just affected from losses result of my trading , and its not in profit result while when at profit result will affecting the greediness i think , so from that the mental strenght is really necessary when doing this business to deal with the pressure of forex market condition either in profit condition moreover in loss result conditions

That was good thing because there are many traders who can gain big profits but they could lose big amount in short time either. It is good thing to prevent big losses with proper money management because forex is not how to gain profit only but also how to limit the loss so as overall, we could gain consistent profit. In our emotion, we shouldn’t be too happy when we got profit and we shouldn’t be too depress when we got loss. If there is proper money management, profit and loss have been managed so traders didn’t need to lose more than they could afford to take in each transaction.

It is expected to be affected by losses, because it is out hard earned money going down the drain, but a good trader must learn how to control his emotions while trading.

You must realize something. When I first started to research investments I started at real estate but the quote is valid here as well. The person who spoke it was either Warren Buffett or Robert Kiyosaki… I cannot remember. Something along the lines of " I have had the pleasure of meeting a multitude of different people from different backgrounds. “I have met countless poor or un-successful people in my life who have never lost a dollar. But I’ve never met a successful or rich person who hasn’t lost money.” of course i’m para-phrasing but the quote shook me to the core at the time of reading.

1 Like