How do I become emotionless when trading?

Beginner Questions Trading Psychology
#325

Developing a clear, predefined trading plan is key. Detail your entry, exit, and money management rules. Automate your trading plan if possible, or use alerts to minimize time spent watching the market.

Consider practicing mindfulness and meditation, these can help manage anxiety and improve focus. Regular exercise and adequate sleep can also positively impact emotional resilience.

Another effective method is trading in a demo account until you feel more confident. You can also consider trading with smaller position sizes to reduce financial stress until you can handle larger trades.

Lastly, remember it’s okay to miss a trade. There will always be another opportunity. Patience is an essential skill in trading.

#326

You do not need to be emotionless; instead, you just need to learn to control your emotions so that you may better manage your trading.

#327

Hi Corey here somebody told me a long time ago when it come to trading . first put limit order on and then know where u want to entries the trade and then put your stop loss on and last but not least know where you want to get out of the trade with profit. or uses trail stop u collect money your trade going in your favorite . all in all walk away from your computer.

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#328

I think it’s not about being emotionless but to control our emotions. But to be objective with no emotions involved, try automating your trading with EA. Since it just uses predefined rules and algorithms to execute trades automatically.

#329

I’ll share my psychology/emotion mental hacks.

Hack 1: Lower my lot size to a level that I can still fall asleep with the trade open.

Hack 2: Anchor my risk amount to a normal activity. What I mean is that if the total risk for a trade is $50 for example, I think about things that cost me $50 in my daily life that have no possibility of returning a profit such as going out to dinner, buying a pair of pants, putting gas in car, etc. I’m okay with not getting a return on investment with these purchases and it puts risking the same amount in a trade into a more emotionally acceptable context.

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#330

Hi CoinLady,

Great topic, and it’s a common problem that many aspiring traders encounter. Trader psychologists have identified two issues that can lead to Human and Market Cognitive Emotional Mismatches. We have created videos addressing each of these issues:

1- Human-Market Cognitive Emotional Mismatches - Performance Pressure

2- Human-Market Psychology Conflicts - Loss Aversion

I hope these videos will be helpful.
Happy trading! :blush:

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#331

It is important to have a plan for your trades.
great strategies and try to keep yourself updated.

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#332

Use a mechanical trading system and stay away from the 5 minute chart unless you are a scalper. The 5 minute chart is best when the markets are slow and ranging.

#333

The goal is to successfully control emotions, making informed and sensible judgments while avoiding impulsive and harmful actions motivated by fear or greed. You can do that by sticking to your plan and not being influenced by the market fluctuations.

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#334

That’s a typical situation of those lacking experience in trading. Trading psychology is a very subtle thing and it requires lots of time to work out.
Becoming completely emotionless is impossible, but you can diminish the influence of your emotions on the result. This also requires time and practice. Without practice nothing will change. Open positions, hold them as logn as you can and don’t close them even if you see the price’s moving in another direction. Idk, close the tab and do your housework :smiley:

#335

I watched them and I sometimes watch Utube videos and think it can help us to manage our emotions. Thank you for sharing.

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#336

Yes, and having a plan actually helps you manage your emotions better.

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#337

it is also about having experience. just like in life, as you grow older and have more experience in life, as you see tons of scenarios, you stop getting surprised to whatever happens in your life.same thing is valid for your trading life, the more you trade and the more scenarios you find yourself in, the run into, the less surprised you will be, because you will recognize them and you will be less triggered to be nervous, or happy. you detach from your feelings. as mentioned in this thread, just keep your risk management straight, your trading plan under control, revise your trading journals periodically, and practice practice practice. it should be allright. you’ll become like: “oh i have seen this before” and not get on your nerves.