Disclaimer - Please discuss this respectfully. I have noticed some aggressive, sarcastic and angry posters when people disagree with them. Not everyone needs to agree with your opinion, it’s OK.
There are dozens of ways that traders give up profits and habits/behaviors that are counterproductive to trading. I want to talk about one specific area which is “emotions”. When I started my journey into trading I wasn’t a week in before I started hearing about “no emotions allowed” trading. I jumped on board because I myself made a handful of very dumb decisions due to my emotions. I eventually began preaching “no emotions trading” to others. Looking back I realize I was saying it because it sounded good and everyone else was saying it. Digging in deeper though, that statement really didn’t make sense to me. Why would we want to trade without emotions? We are humans and not robots, so I am not going to beat myself up over having emotions. We all love and are passionate about trading and being successful, so emotions are going to be par-for-the-course.
Part of the success I see now comes through emotions. By that I mean I always enter a trade with a specific plan, but I will break that plan if I start to get a bad feeling about the trade. That intuition is delivered to me via my emotions. Just in the last month I have closed about half a dozen trades early because of an emotional response I felt due to the price action I was seeing. In every case I closed my position the price collapsed shortly thereafter. I walked away with solid gains, which would have become losers otherwise.
Thinking through this topic, I don’t think it’s realistic or healthy for a trader to “eliminate” emotions. I also think it’s far too vague to tell other traders to eliminate their emotions. What does that even mean? Is there a way we as traders can be more specific and offer more useful advice? I don’t think emotions are the problem, but wrong application of those emotions are certainly a problem.
I know this is a sacred cow in the trading world so it will elicit a wide range of responses. I hope this was at least thought provoking. Remember, please be polite and respectful when discussing.