Don’t let your emotion consume your mind. It’s really tough to retain emotion in a trader for a long time while trading but emotionless trading is very essential because it hampers a trader’s trading. This worst quality messes our mentality and makes us puzzled what to do and what not to do.
The key is recognising it, because it will never go away, then learning how to manage it. That’s not easy, though, as humans have evolved to avoid pain at all costs.
Three tips:
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Never nurse losing trades on the hope that they will reverse in your favour. Cut them short. I hate losing money, but I hate losing big, more so. There’s always another trade awaiting.
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Nurse winning trades instead. Aim to bring S/L to breakeven, then close 50% of your trade and let the other 50% move up to your next profit zone. Use a trailing stop.
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Tip 2 can be modified for ‘the not faint at heart’ by adding another position at breakeven, or even before. Think in percentage terms all the time - not money, and the larger the account size, the better chance you have of not blowing your account as do 85% (US stats over the last 150 years) of new traders.
Losing $50 on a $2k account is only 2.5%, well within your daily risk limit.
its a good post with exact information , got some fine lines . thanks for your nice reply.
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after having powerful trading knowledge there is no way to avoid emotions , its very common human nature.
yes, i fully agree. Limiting your emotion as much as possible will help you trade better. Having greed or anger can offer lead to big mistakes that can be very costly to your account
no emotion when you trade, or you will messed up