Controlling your emotions is one of the most difficult aspects of forex trading as real money is involved. However, losing patience can result in the total destruction of your account. So one needs to be in control emotionally, while trading in forex.
totally agree with you mate.
I usually try to keep my emotions under control using mental exercises such as meditation. It is quite effective.
I often place pending trades in both directions in case I’m wrong on the longer trend. I call it “insurance trading”. I started this when it dawned on me that every time I was wrong on the trade direction I lost much more than I gained on the ones I guessed correctly.
So losing a trade often opens my pending trade in the opposite direction and I recover some or all of what I lost initially.
If I was to ask what is your ROI each year based on a .5% risk on each trade you probably could not give me a answer because you do not know the answer. If you knew that every year your ROI would be 20% you would not care about the one particulate trade.
My point to all of this is back test your strategy so you know what to expect over 100-200 trades. Then all you do is plan the trade and trade the plan. If you back test and know the probable outcome your not going to care about one trade. The one trade does not matter at all. It is the 200 trades over the course of the test that matter.
Your unsure about your current strategy and are probably risking more than 1% on each trade
In my opinion the only way to truly backrest is on Forex Tester 4
The reason why your losses are greater then your winners is because you cut your winners short and let your losers run.
You are so right.
But I’m scalping now, so its rare to let the winners run. I take a targeted cut and close. So I found a way for most days to be profitable, but I absolutely know I could always be a better trader. Now, I don’t let losers run and I have turned what used to be losses into winners (usually).
I am always impressed with traders that have the patience to let those winners run though. I’m not there yet. I just want to keep stacking winning days together to keep me enthused and to build the account to the place where I can try some new approaches.
I find meditation and mindfulness quite effective as a trader. They help me stay focused on the trading game.
It’s impossible to become emotionless when you trading.
Everything because our emotions caused by particular situations whether in life or in trading, hence you will feel emotions anyway.
The matter here is to decrease their affection on your trading behavior and your success.
It’s tough, but not impossible.
You have to listen to yourself, listen to your needs and your inner voice. Think that this is the best option.
Yes, the easiest way for me to deal with my emotions was the advice to trade on the D1 charts. I do this as follows. Since Sunday I look through weekly charts and start to form a plan about pairs I will be interested in trading during the week and which ones I will not. Further every day I look through the daily charts for signals for entrances according to my trading system. I have no emotions. The only thing I fight curiosity and look at the chart during the day (if the deal is open), but I never allow myself to close deals manually within the day. It’s comforting to have a stop, trailing stop at n-points and a takeprofit. But I think for intraday traders this won’t work, as everything is faster and more volatile.
Are you really convinced that you have to be emotionless during trading? I believe that emotions take the major part in trading and it’s impossible to get rid of them at all. There is chance to restrict their affection on your activity and no more. For this, you need to practice, practice and once practice. Firstly, you should track your reactions in various situations, and preferably, write these reactions down.
Trading is all about regularities and it’s a constant activity, thus situations are repeated. That’s why after you track your emotions, you will be able to learn how to get rid of their affection gradually. Ofc, you have to do it on demo account, and imagine that you are trading real money.
Because the market is dominated by humans, emotions drive the entire market. The market is driven by people’s greed and fear of losing money. To avoid such emotions take a break and always use stop loss to avoid losses.
Please don’t force yourself to become an emotionless guy; it will make you more emotional actually!
Try not to trade when the situation goes out of the hands. Learning how to control your emotions is crucial, and mental health exercises might help in that. Consider learning about it through good and authoritative books and courses on the topic.
Instead of suppressing your emotions, learn how to work on it.
Feeling anxious is normal. You are afraid to enter a trade because you lack confidence. Just try to see trading as a job rather than a challenge. It surely is a challenge but try to stay calm and build some confidence.
Set some rules and follow them like a robot
When trading, having the right mindset can be very beneficial as a trader cannot be completely emotionless. It is easy for traders to engage in irresponsible trades when they are impatient. Practice meditation or any other technique that calms you down when you are trading at a loss or about to.
Mastering the game of emotions is not difficult if we are determined to control them. We have to learn to control our emotions, of course, because we all are human beings and emotions are natural. But as trading is a fast-paced game, mastering extreme emotions like anxiety is crucial. There are courses and books that are helpful in controlling emotions while trading and in general life as well. They can help us control our emotions. Learning to control emotions will take time to master, but with patience and kindness to ourselves, we can learn to control our emotions quickly.
Can you suggest any courses or books I can look into?