“Treat Trading Like A Business” as i did & earned a ton of money. I am sharing my personal experience that how i made money from trading specially XAU USD ANALYSIS by taking special guidance from Multi Management & Future Solutions.
Control Those Critical Emotions
Here are 5 down to earth tips to enable you to figure out how to be beneficial and control your feelings:
Emotions should be controlled in trading because it leads us towards revenge and greed factor. It can be control like others do control on it so first we should have proper knowledge of Forex trade and spent three month in demo account.
It is not a matter of intelligence to hide emotions. It is training regular practice and do trading in realistic way that will help any trader to involve less emotions. Many genius traders are fail in this task. When our target and acts are realistic we will definitely overcome emotions.
In line with these suggestions @Jaavos, another solution to consider is automation. If you can program your trading strategy, or have it programmed for you, that could help take your emotions out of the decision making process.
you cant overcome emotions. successfull traders dont overcome emotions and they dont even try. you must learn to live with them and use them in trading.
they r a good indicator. when you are anxiety. when you are worried. when you are nervous - no matter in or out of a trade::: dont trade. close the position you are nervous about.
it can be out of these reasons:
position too big
wrong direction
nervous about upcoming news event paired with too little margin to withstand spikes
etc
etc
when you have open positions and dont think about them. dont get nervous when not watching chart. dont get anxiety etc- hold that position open.
it means your subcautions sees no danger
you are sure of your direction
you are in profits and comfortable it will continue
same goes for when yiu staying out of market. if you are calm not trading then it is good to have no position. if you hold no position but are not calm with it since market is moving then listen to your emptions and open trades.
use your emotions. you cant turn the off or silent them. they are good for you. they warn you of danger before your cautious brain knows there is danger. whoever tries to overcome emotions wil fail as he is trying to overcome nature and human nature itself. you can tell yourself a million times 2+2 is not 4. but only because you are stubborn it wint make your statement correct. same goes for emotions. you cant overcome them or shut them down no matter how hard you try. you go against your own nature. its better to make use of your nature instead of going against it.
When I was panicking in a trade, I always found the best solution to be, to switch off the computer and go for a walk, half an hour or so is fine - it fulfils the “flight fight” choice need our minds apply to these situations.
Do you close the position you’ve opened first? I generally agree with the idea of leaving the platform for a while when the anxiety gets bad - it’s something I certainly do - but I, personally, tend to close my positions first because otherwise I’d just worry even more.
That would depend on the trade timeframe I had entered - Something like fishing for a few pips intraday - then yes, probably. a swing trade or positional, then no, If you’re going for a walk so your brain thinks you’ve taken the flight alternative, your psyche will automatically reduce the stress level. The alternative is the “Fight mechanism” where you just refuse to accept the judgement of the market and lose masses and also manifests in “Revenge trading”.
THe “Go for a walk” strategy can be used to combat all sorts of stress situations and avoid conflict - It is a most under publicised and Highly useful strategy, in everyday life - although it sounds “rubbish”
When you come back from your walk, start up the computer again and make a rational decision. ometimes the trade will have come back your way some, sometimes it will still be around where it was when you left and occasionally it will have gone against you some more. It is amazing however the number of times you will close out to relieve the unbearable stress, at the exact wrong time and watch it come back in your favour, leaving you shut out for a loss.
I have traded with a few companies in the past and all the brokers are Emotional even the best ones, but of course the worse scenario which i have seen over and over again is Revenge trading which i court myself on that trail a few times in the past luckily my broker from [removed by administrator]… put me right
When I first started, live feeds were unheard of for retail, except you paid a lot of money - 15 minutes delay was about it unless you went yahoo and kept clicing refresh, or Bigcharts and kept clicking “refresh”
Or you could watch the ticker tape at the bottom of Bloomberg TV (for the DJIA anyhow) - you wanna feel emotion, trade to Bloomberg TV !
[Edt even the background music is (or was) designed to get the adrenaline flowing ! ]
[Edit 2 - then ring the broker, to see what price to get you “In or out” - nowadays it’s all so easy ]
[Edit 3 - ee that brings back memories - You’d ring up and ask for “dow” - he’d say 6954 over 6946 0r some such after you’d given your id.
You 'say Buy £5 at 6954 and he’d shout “Gain 5 October Dow” to the boys in the “Rounding room” (or “Lose 5 October dow” if it was a short. ) - then he’d say “Buy £5 October dow confirmed” - Next day you’d get a letter confirming the details. (yes you could ut a stop-loss in, but not a take profit as I remember0 ] ]
some would give you the price before you were asked for id, but if you faffed around or dilly dallied we’d hang up or decline & re-quote…to some poor nervous wrecks that was way too much emotion lol.
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