Yes, emotional challenges are the most difficult to deal with. The first aim is to learn how to detach your mindset what’s going on in the market. That’s ZEN. Then you can accept emotions as being normal, but you can ignore them, because you only have control over your risk exposure, but not anything that the market throws at you.
A CEO of a trading firm with 30 years of experience was asked if people are good traders?
He responded, Yes & No
Yes - more winning trades than losing trades.
No - they run their losses longer, and add to losing positions…
There are two ways of dealing with it.
If you are following your trades, limit it to every hour, otherwise ignore it. Always close losing trades early, and never ever add to losing positions. You will accept pain as being the norm, when you realise that there’s always another trade waiting. I hate losing, but I hate losing big, more so.
With winning trades nurse the S/L to breakeven plus one pip. Scalp off 30% - 50% of profit and use a trailing stop for the balance until it reaches your profit zone.
I trust my strategy and process to be profitable, so I add both a T/P and a S/L to my trades and turn off the desktop until the following morning. Of course you need to have every confidence in that your strategy provides more winning trades than losing ones. Just 52% will be enough to provide you with a consistent profit.
Most traders open trades out of emotions. They fear that they will miss a trade & open big lots out of greed. But getting swayed by emotions is one of the most common reasons for the failure of the traders. It is very difficult but important to have the right balance of emotions while trading. This can be achieved by practising self- awareness and discipline.
Please don’t expect 100% profit here, it’s completely impossible! No one can make 100% profit here! Loss is a very common part here, & that’s why money management is important!
For me, this means to focus on doing your trade properly, instead of thinking about your profit. If you have a trade that’s about 50% on its way to your TP, then retraces back and your profits drop, you may get scared and close your trade. But if you can think of trading as a game(?) and NOT think about money, perhaps it’s easier to detach your emotions from the trade, and let it ride until it gets near your TP. Sure, easier said than done.
On one of my yesterday posts, I explained how I treat emotional challenges. Above if you have a winning trade that you can move your S/L to breakeven plus one pip, you could scalp 30% -50% and let the balance run to your designated T/P zone with a trailing stop. IMO, for small account sizes, that’s the way to go. Or you could just place a trade with a built in T/P & P/L and close down your desktop until the following morning.
Or if you’re a pro trader in that position you could add to your trade, which means you have no fear about trades retracing, because you have NO control over what the market throws at you. That mindset needs to be bulletproof, and I would only recommend it if your account is $100K and above.
BTW, the ZEN mindset accepts emotional challenges, as you’re not a robot…
Put a halt to trading for a few days if you recently suffered a significant loss. Examine your trading strategy and identify the issues that are the cause of the loss, and adjust your trading strategy as needed. Then trade for a few sessions in a practise account to boost your confidence. Once you’ve had a few lucrative days and are starting to feel more like your old self, then you can transition to live trading.
Taking a break to calm yourself will be very important, I learned that the hard way today. I had a wrong gold sell setup which almost blew my account. I wanted to get my money back instantly, but lost again. My point is, always calm your nerves after loss.
Newbies should do well to read this article before they begin; A Trader’s First Steps
Emotions and trading are not a good mix, bro. It is critical to keep your emotions in check when trading. You should also work on your mental attitude. It is something that forces you to be a disciplined trader, which leads to market success.
I known what is the root of lost,it’s is my personality emotion take over control me from make a decision everytime market againt me. You know some time I have a series wining trades, I fell good and believe i can earn more. But right after that I suffered with big lost and blow all my winning before. And I have a bad emotion I want to get money back and then I trade right as a robot click click click then I don’t know why it’s happens like that. After each time I look back " why was that"… I want to fixed that enemy but I can’t do by my self or I touch the wrong way to escape the obstacles
My friend… you are revenge trading: the fastest way to blow your account.
You need to start trading like a pro. Trading is a business and you need a plan for each trade.you need to know your take profit point and your stop loss before getting in. You only get in if the risk is worth the possible reward.
The thing with your stop been hit is that you are going to think that price has gone far enough, and soon It Will reverse again… or you Will Also think that you were wrong and you need to open in the opposite direction. This is exactly revenge trading. You need to avoid this.
It Will hurt… but What you need to do is let price hit the Next target before Opening a new trade… Wait for the Next setup…let price hit target with you out of the market. And remember market Will still be waiting for you tomorrow. Wait for the best setups.
don’t control your emotion ,you loss simply because your technic is not on point ,it has nothing to do with your emotion ,if you have 30k to loss ,why don’t you give them to me ,i can instantly make you a winner for the rest of your life.
How everyone reacts to loss or gain is obviously different.It can take more time for some to find their “niche” and trading style.A cliché if it was so easy we all be millionaire s,that obviously is nt true but you know what I mean