Yes when you do not care about risk and trading plan you are going to do emotional trading. Actually you do not act upon any discpline . You go with market as it goes this can be harmful ,prior analysis is essential to do emotionless trading. Potentially one can not eliminate all emotion however can try to control them before they are going to mislead you.
In Forex, emotions and trade do not combine. You have to personally decide to tackle your emotional issues once you decide to become a trader. You can go through the threads on trading psychology to know how to handle your emotions. Good luck
No one can teach you how to become emotionless, only you can, the more experience you gain the more you will learn how to.
It is well known that most people fail at the beginning of the activity. If we analyze in detail the main reason behind this setback we would see that it is not directly related to the market. It has nothing to do with currency analysis or strategy or learning. Rather it has to do with the lack of emotional restraint and mental calm, necessary to reach a consistency over time.
There are several ways to become insensitive when trading. You can write a trading robot. Or you can reduce the working lot to an acceptable size. You can also open a trading order, place stop loss and take profit orders, and turn off the terminal by switching to another activity.
Get a working strategy,… trade a higher time frame like the 1H,… use a sound risk and money management principles,… let your TP and SL be placed,…follow your initial trading plan even if it seems your trade is going the other way round,…
I’m pretty sure all these, when in place, would put your emotions in check!
For me there is no such thing as emotionless in trading but what helps me are the ff:
- I never trade below H1 timeframe. Less screentime, less false signals, less mistakes, less emotion.
- I only Risk 1% per trade. (Don’t be afraid to lose a percent of your capital. It’s a part of doing business. Embrace the risk.)
- I only trade with the trend. (My strategy is a trend following system). No point of finding the holy grail every system has pros and cons. AHA moment for me during backtesting.
- Take care of your trading account similar to taking care of a plant or baby. Never expose it so much risk. So it can grow consistently.
I think that we are all different, so there is not one unique solution for every trader. I think that each trader should work on his or her own psychological aspects of trading and try to figure out what keeps him or her calm when trading
In the way to achievement, a trader must try to learn how he can manage his greed, over thinking and sometimes overconfidence. Every trader needs to deal with important aspects associated with trading carefully after crafting proper trading plan. With the employment of efficient money every trader can expect to make profit only when he can make practical decisions here.
Though emotionless trading is a challenging task,traders must understand the importance of emotionless trading.In order to increase your returns ,one must learn to control their emotions while they trade.
Therefore, the following points can help you trade emotionless:
- As for beginners,do not take a lot of risk so plan your portfolio by moderating the level of risk.
- Having a written plan can help you stay on track.
- Stay updated with the market trends.
- Focus on your current profit and loss.
- Don’t be too greedy.
- Always stay calm and patient while you trade.
- Find out the best time/day to trade.
- Avoid trading after 3/4 consecutive wins/losses.
I did use a method be lesser emotional when trading, that’s discipiline. You need to comply more and more rules in trading and don’t never let emotion controls you. You’re know what to do, not what you want to do with orders.
Use 0.01 lot. Thank me later.
Only enter a trade when you are sure you will win-there is no reason to become nervous. And really-those trades exist, but you have to find them.
I’m demo trading with oanda. Have you started? Which broker did you choose?
Imagine, it is just a computer game. Secondly, develop a simple strategy you are confident it. If you use an hourly chart, check your positions once per hour.
But what you can do is build confidence in your strategy, accept that draw down is inevitable, every strategy produces strings of losses and wins. Then take your trade, set your SL, Set your TP and walk away.
I have taken many a nap when a position seemed hopeless only to wake up to my TP being hit or darn near it.
Emotions are part of who you are. You just have to learn self control. Use some of the auto stop options to make sure your emotions don’t get in the way of you cashing out or closing out.
What makes trading difficult is not only the market,strategy news or values rather it depends upon the mindset or behaviour of traders.Initially it is difficult to keep emotions in check as huge amount of funds are invested but no can teach you this.Gradually with more experience you will learn things or may be you can start making sound risk and money management strategies.
Start automated trading.
You can become emotionless at once, as it’s a long-lasting process. There will be a lot of loses on your way, so you need not just overcome them, but understand that loses don’t matter. It’s easy to say, but hard to do and you need not just to forget about money or opportunities you lost, but also train your mentality. I can describe this in one phrase, that I’m saying to myself “Yes, you just lost your money and that’s was your fault. But, hey, such happens to a lot of traders every day. And I’m a good trader, huh? So I will make my profit over time and this lose doesn’t matter”. Hope that’s will help you…