Sometimes we lose our trading account because of our emotional involvement in the business. So a strategy without emotions can be a good strategy for us. Also, if we master the strategy used when trading, we will surely make good money from it.
due to having emotions we the traders suffer much in trading life as well a real life. its really a true fact but no way to avoid this common human nature.
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So what’s your question?
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There is no strategy without emotions cause traders themself has emotions and can still be emotional. The only way to completely remove emotions in a strategy would be the use of Bot trading.
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Yes, it is true. But since robots do not have a flexible structure, traders will do not master to strategy.
We are discussing whether emotions are present at the time of trading. How do you think emotions affect transactions?
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Emotions can be controlled I believe through a “deeper self awareness” though this is probably quite personal. Confidence of “owning” a winning strategy (though also realising market conditions can change)alleviates the emotions ,knowing over time The trader knows his p/l will be positive over the longer period. Regarding my trading I only really look at the Indices after the big sell offs ,when making a substantial profit I usually cash in ,it nearly always extends after ,well the us indices anyhow.
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Sorry. I missed the fact that the topic itself was the question.
My opinion is anecdotal so it may not be popular. I think activities like trading force you to confront just how emotionally susceptible you are to all your decision making processes, period. It’s just that in trading the consequences of acting on your emotion have a direct impact on your bottom line.
If you’re the type that get swayed by nationalistic rhetoric by from political parties, influenced easily by social media influencers or are susceptible to impulse buying decisions from the likes of shopping channels then those very same traits will negatively impact your decision making process while trading.
Also found out that managing emotions isn’t a one time exercise. It’s a muscle that has to be consistently practiced and developed over time so it becomes second nature.
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Not sure think trading,especially day trading charts.Its such an idiosyncratic and unique activity.Think it can stress out just about anybody.
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Again, only my opinion and perhaps very subjective. Trading removes a lot of the barriers to act on our emotions, as opposed to other situations in our day to day lives. For e.g.
- If I get mad at someone on the TV i may just exclaim loudly and simmer for a bit. I’m limited or restricted from acting on my emotion by the fact that the other person isn’t within close proximity
- If I get mad at someone cutting me in traffic I’ll do the same thing and at most roll my window down to give him an earful. Laws and the fear of legal implications will keep me from doing more.
When trading I don’t have those restrictions. The freedom to act on impulse, revenge trade, over trade, etc becomes so much more easier.
I also don’t think it’s unique to trading. I think high level sports and activities that require a great deal of mental skill (poker, chess, e-sports) also benefit from the same mental discipline.
Very true. I think how we deal with the stress and channel is what determines whether we succeed or not. Again my opinion and subjective.
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[quote=“darthdimsky, post:11, topic:669675”]
think high level sports and activities that require a great deal of mental skill (poker, chess, e-sports) also benefit from the same mental discipline.
[/quote] yes sports such tennis and golf at the highest level requires a high level of mental strength , which sorts out the men from the boys,maybe it because there lots of thinking time between activity and time for self doubt but I’m straying off the subject abit here
One of the key advantages of having a defined strategy with fixed rules concerning set-up, entry conditions, stop-losses, position size, exit criteria etc., is that these rules exclude emotional input.
There is no place for unchannelled emotion in trading.
However, if there are forex market conditions which make you feel queasy about a trade, recognise what these are and incorporate it into your strategy. Otherwise the tail wags the dog.
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Yes that majo
Yes 100 % correct but understanding that and Substaining this rule may biggest reason why people fail ,the rule has to be hardwired in the brain
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