what do you all do to keep trading emotions in check?
The best market sentiment strategy is keeping away from it. If you don’t use the most popular technical analysis tools and don’t trade reversals, you can avoid the riskiest moves.
Don’t chase the sentiment.Doing so you could develop a sustainable trading strategy with the right mixture of technical and fundamental analysis.
When I don’t trade, I do my best not to think about trading or talk about trading at all, which helps me stress out less.
Hi, I create many automatic strategies, I know exactly when to turn off each strategy and replace it with a new, profitable one. Regards Greg
The trading strategy with the check list will prevent you doing something by the emotions.
Checklist is the great tool against emotions and if you can automate that checklist then you are set. You do not have to worry.
Emotions are not so easy to control but if you manage to define which one is doing damage to your trading then you have a clear path for solving that emotion.
If you have already the list od emotions that distracts or damage your trading write them here and we can get through each and find a proper solution.
I would say the same as other posters .
I use mostly Supply Demand trading.
Even though I trade manually I execute my trades like a robot
Once the trade presents itself and checks all my boxes I buy/sell and then turn off my laptop and check it only the next day I find this helps my emotions but did take a while to achieve this .
You will never know 100% what will happen in the future. It’s the future and hasn’t happened yet.
Trading is all probability, never certainty.
Just know the general probability of your system and think about that probability with every trade. After finding that probability through testing, you can be absolutely certain of that probability and that is something you can hold on to.
only risk a certain amount I’m comfortable with per trade, then I have no worries
This is probably the most difficult thing that happens because you are constantly under stress and you just do not always have the opportunity to relax and let go of your emotions. But sometimes I let myself do it, I just pause to think it over and sometimes even change my approach or strategy absolutely radically for today. Plus I have a certain percentage of acceptable drawdown, according to which I can end the day in minus and it will not be a tragedy. Sometimes I can afford to rest even a few days, but then I return to work full of energy and strength.
It’s complicated actually, I personally still get a little nervous when something goes wrong, maybe it’s stupid, but how not to worry when you see that something is wrong with your capital is not just unbearable. I would really like you to get rid of negative emotions as soon as possible, and believe me with experience it will pass, I don’t think you’re a superhero, you’re human, and it’s okay if something doesn’t work out right away. The important thing is that you keep working and believing in yourself.
It’s very simple actually. You need a profitable strategy and the conviction to trade it. So: Have a strict criteria to enter a trade, a strict % risk and a exit. And just trade it everytime it sets up. That’s it. Nothing to keep in check. Just like crossing a road, look left, right, left again, clear, cross. That’s it, nothing to it. Dont overcomplicate it, otherwise it’ll be on your mind.
That is a really good question. Something I struggle with as well.
For myself trying to trade like a robot is very frustrating, but so is allowing my emotions to destroy my trading account. I read Michael Douglas book called, “Trading in the Zone”, in my opinion the best book out there on trading psychology and how to develop a winning attitude and the traders mindset. If one can identify which emotions and more specifically which fears are causing them trouble, and learn to overcome them, then we allow our self to see the charts as they are and not as we wish them to be. A lot easier said then done, but perhaps a journey worth the destination.
All the best in your trading.
The first thing you need to do is to stop trading on the minute charts. The higher the time interval, the stronger the signal, the more time you have to take a decision, the less you need to follow the price. Psychologically, it is easier to trade on the larger timeframes.
Secondly, apply Money Management. The more you risk, the more dependent you become emotionally. If you do not risk 50% of your capital in one transaction when you have opened the minimum lot size, then you should not really care how unprofitable or profitable your trade is. When at stake there are larger sums, immediately your big problems begin. All your mistakes would definitely go away if you start observing the rules of money management.
The most traders agree that the best way to relax is meditaion or sth like this. You also shoud just have a clear understanding of what is called the trading system. Only if you have a clear plan, you won’t fell under emotions as you know what are you aiming for and what your final goal is. The best way to fight against emotions is to set some redlines and control to not cross them. Such redlines may include the limits of risks, and the understanding that the goal number 1 is not to earn, but not to lose
i have to take regular breaks, and monitor my screen (chart) time. allocating time and managing that regualrly is key for me
this is actually very clever and true
yes that works haha. i sometimes just uninstall mt4 mobile app on my phone for a few days so i can only trade on desktop at home, so i dont get tempted when out and about- this is when i need some breaks
You have to detach yourself from the money. Consider it gone the moment you place the trade.
I have read a lot about daily meditation / pre trading routines that a lot of people swear by, or using music to get in the trading zone.
It is each to their own and what works for your personality really no right or wrong way.
Sometimes that’s what it takes to enforce discipline for oneself. I’ve done similar things too.
Very well put my friend.
Probability that’s well researched and tested gives it a higher than average probability of happening again.
That’s all were doing is basing an assumption it happened before therefore can happen again .