Emotions can affect every aspect of our daily lives, that's part of being human.
Trading is no different. If one is conflicted by their emotions, then all the analysis in the world won't help them.
It is natural for our brain to go into a state of alert and prevention when we attempt something new and unknown, until we become familiar with the risk.
These series will provide insights from expert traders and how they overcame emotional conflict at the beginning of their trading journey.
Learn from their lessons so that you can master your emotions and master the markets.
Emotions can affect every aspect of our daily lives, that's part of being human.
Trading is no different. If one is conflicted by their emotions, then all the analysis in the world won't help them.
It is natural for our brain to go into a state of alert and prevention when we attempt something new and unknown, until we become familiar with the risk.
These series will provide insights from expert traders and how they overcame emotional conflict at the beginning of their trading journey.
Learn from their lessons so that you can master your emotions and master the markets.
Key Points of the Lesson
TRADING EMOTIONS
Fear ⇒ leads to hesitation and the inability to let the trade develop according to the plan.
Depression ⇒ Can lead to a decrease in confidence, doubt in your own abilities, and TA.
Greed ⇒ unwillingness to realize profits, hoping for more.
Euphoria ⇒ Can lead to complacency, being overconfident, and poor risk management.
GET IN THE ZONE
Organized trading station.
No distractions.
Full focus.
Beware of outside negativity ⇒ can impact your trading performance.
RISK MANAGEMENT
Protect your capital.
Stick to your plan ⇒ ignore external distractions/suggestions.
No trade is also a trade.
Use leverage sensibly ⇒ increased leverage = increased risk.
STEPS BEFORE EACH TRADE.
Find the confluence.
Pick a position size that fits your account size.
Execute ⇒ no feelings or doubts.
TIPS & TRICKS
Focus mentally and physically ⇒ exercise, eat healthy, sleep well = increased performance.
Treat trading like a job/business ⇒ take it seriously.
Patience is key when waiting for trade setups.
TAKE HOME MESSAGE
Be aware of your emotions.
Play defense and manage risk.
Execute your plan.