Emotions in trading can be beneficial or destructive, depending on how you use them while trading. You cannot give up easily just because of the lack of emotional control. The process of controlling your emotions will take time, and it is not an easy job to do. You have to understand this first, and if you constantly kvetch and complain about your trades going wrong because of some mistake or some emotion, you cannot learn and trade. You have to accept your mistakes and learn from them.
You can’t really be emotionless while trading you have to be assertive and confident.
You have to take charge of your emotions anyway because you are the only one who drives your emotions; no one else does. At the end of the day, only you have to trade to profit; you are the only one who has sole control over your emotions. Understanding your mistakes and learning from them is a good idea. Other than that, mindfulness is a great tool to help you control your emotions.
once you have discovered the key, yes there is one, any style will begin to work for you. so focus on a formula that forces any system to work instead of trying to find the perfect system
Do not gamble, or use your last money
The stress of a trade can lead to a mental breakdown. Emotions can cause you to deviate from your trading rules when executing a trade. Having a trading journal to refer to in times of confusion will assist you in staying on track.
You don’t need to become emotionless for trading forex. That is not possible for an average human in my opinion. What you need to do is manage your emotions and pay more attention to logic while you are trading. If you have an urge to over trade then try to see if that will be rational, what are your chances of winning with too many trades? Is that thought justified based on your past experience? Here you will be questioning your impulses and making a decision that is backed by logic. This is something that works for me as a trader.
You can’t be emotionless, that is not possible. However, you can gain control of your impulses by taking a beat before you decide to make a move. This can give you some time to re-think and control yourself from spinning out into loss.
It is not possible to become emotionless; instead, you should learn to control your emotions.
You cannot be completely emotionless while trading. In fact, when you are confident, faithful, expectant (in the right way), or hopeful, aren’t you expressing your emotions? You are expressing your emotions anyway; when you express your opinion and take action when you are trading, that is also an emotion. You cannot be completely emotionless; you can only eliminate the ‘bad’ side of your emotions and nothing else.
Set it and forget it! Simples
You can achieve your goal by thinking like a trader and adopting a traders mindset. It will assist you in maintaining emotional control, which is necessary for successful trading.
Humans can never be emotionless. It can be less but never can be fully emotionless. Rather emotionless, inculcate confidence in yourself.
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.