The more experienced a trader is, the more importance he attaches to the emotional component - but in a specific sense. This does not mean that emotions dictate what to do. Very experienced traders treat their emotional state as an additional source of information, and can stand by and hear the “gut feel” above and beyond the emotional noise.
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Thank you all for the cool feedback. It’s hard to comment on your insights other than - yes, you are right.
willson_FX aptly sums it up “It is vital to control your emotions, rather than let them interfere with your trading”.
That’s the point.
And also true, rileymichael “The more experienced a trader is, the more importance he attaches to the emotional component”
Professional traders I have talked to indicate that about 90% of their problems are related to the psyche and 10% to the system/strategy. When they were beginners these proportions were reversed.
It would be impossible to get rid of our emotions at once. That is why we need to let these emotions do their work while we do ours. Logic and emotion can co-exist if we are emotionally intelligent. Emotional trading happens when feelings overpower our reasoning. That should not happen when we use our emotions as a key element in our decision making process as a forex trader.
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Emotions play an important role in decision-making. If you can’t tell what emotions you’re putting into your trading and what can be useful, you’re doing it wrong. Then you have a serious problem, and you should work hard to improve yourself.
I think trading forex can lead to intense emotions. A trader must manage their tension, fear, greed, and other emotions carefully in order to set good trades.
Emotions have a direct impact on decision making. A good trader should know how to separate emotions from trading. This is not easy to accomplish but following a strict trading rules and avoiding being greedy can be useful.
Not being able to control your emotions can have a negative impact on your trading. It can cause you to overtrade or engage in revenge trading. This can result in the loss of all profits and capital! It is critical to develop your trading psychology so that you can learn to control the overwhelming amount of emotions and prevent them from negatively impacting your trading.
Yes I have the same approach towards trading, the person who can distinguish their emotions from trading can easily cross other obstacles which are linked to skill.