Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Control Your Emotions.....!!!

 

 

Did you Know that 90% of all forex traders lose money? Now I bet you are questioning my zeal for trading the spot forex market! If you are just starting out trading this market this not a very good omen. How do you ensure that you become the 10% that succeed, especially if given the fact that so many traders are willing to part with their hard earned cash?

 

There are many reasons for these abysmal stats: lack of discipline, lack of money management skills, and many more. I think the reason for poor success rate is that 90% of the traders can't manage their emotions while trading.This is the demon I fight daily. Money management and discipline are the symptoms, but emotions are the root cause.

 

From day 1 of trading currency markets i have heard every guru shouting at the top of their lungs to cut your loses and let your profits run. Or that anyone can put on a trade, but it is the professional trader that knows when to exit a trade. It seems like a simple concept to let your profits run and take those profits when the markets offers them up to us. But why can't we get this right?

Emotions!!!

The curse of all traders, the last and most difficult skill for us to overcome is to remove the emotions from our trading. Period !! Well i got news for you....You can!!

You, my friend, are a human being and thus an emotional being. OK, so we must trade emotional-less, but that is beyond the realm of most traders.

Letting emotions interfere with your trading can manifest in many ways. Let me just give you some examples of my past (and sometimes present transgressions).

 

1) Taking a loss and angrily reversing my position only to have the market resume in my original direction!the infamous revenge trading!

2) Listening to trade signals from members of my trading group instead of litening to my own signals and intuition (afraid I was going to miss the proverbial boat!)

3) And my personal favorite...

Having the market retrace and return almost to my original entry point, exiting and having the market execute a classic continuation pattern to original target (a target that was selected in advance before the trade was executed).

 

What do we do?

i have been following traders that focus solely on trading the news or other fundamental factors. Although this has some merit it won't do sequal fr checking your emotions. Technical analysis should be your weapon of choice for keeping your emotions in check. Do you analysis before your trading session. Follow your trading plan (money management and strategy) as though your life depended upon it (your account balance certainly does!!). Visualize your trade execution like tiger woods does before every golf shot and above all, trust yourself!

 

I repeat the following mantra before every trading session.

" I am the world's most disciplined forex trader. I trade my Plan and I plan my trade. I trade with confidence and decisiveness. If the reason for me to be in a trade no longer exist I will cut my losses or take profits without any hesitation."

 

I am an emotional person. It makes me feel alive, however when I trade I want to be a stone-cold, calculating pip capturing fool and leave the emotions for ehen I shank a drive into the water at the golf course.:)

Thanks For your precious time.

Share this post


Link to post
Share on other sites

A better route for most traders would be to come to a more effective understanding of what an emotion is and then use that knowledge and skill to manage (not control) the emotion. I don't see much success in traders trying to emotionless, resisting the emotion. The more the trader resists acknowledging the emotion, the more the emotion persists and has power. The whole idea is to move away from a historical mindset of attempting to control outcome and retool the beliefs to a mindset of managing uncertainty where probability is normed. Got to work with fear and impulse patterns to rebuild the mind that trades. A few well meaning affirmations aimed at inducing a mindset is a start. The test is if the affirmations lead to solid beliefs that can withstand the rigors of trading. Usually there is much more work involved than envisioning what you want to happen. You need to become the change.

 

Rande Howell

Share this post


Link to post
Share on other sites

You cannot control your emotions. We are emotional beings, they are part of us.

 

The experience I've made led me to the conclusion that emotions play only a major role in your trading (i.e. leading to revenge trading or whatever problem), if you do not really understand the rules of the game. If you do not deeply understand the rules, you cannot have confidence in what you are doing. And if you do not have the confidence, you are prone to trading based on your emotions.

 

For instance, if you trade a system or method which you did purchase without backtesting it yourself sufficiently and knowing what to expect from this system long-term (e.g. win rate, max. consecutive losing trades, max. drawdown, etc.) it is only human to get mad after a string of losses. But if you understand the performance metrics of the system or method you are trading, it is very unlikely that your emotions will affect your trading, because you KNOW what to expect from the system/method.

 

Don't get me wrong, you will still get mad about the losses (I do! :) ). But it will much less likely lead to any negative behaviour in your trading. That's what I've experienced at least in my trading.

 

The other thing is that the system or method used must fit to your personality. If it does, it is also much less likely that you do "stupid" things.

Share this post


Link to post
Share on other sites

I forgot one other aspect. Emotions play also a role if your position size is too big, making you feel uncomfortable with every tick that goes against you. This hinders reasoning.

 

So, actually your emotions can even help you in your trading as your subconscious is telling you something: "Buddy, your money management is way too aggressive!".

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • USD/JPY IS REACHING BEARISH EXHAUSTION, MAY REVERSE AT LEVEL 103.23 Key Resistance Levels: 111.000, 112.000, 113.000 Key Support Levels: 104.000, 103.000, 102.000 USD/JPY Price Long-term Trend: Bearish The USD/JPY pair has been in a downward move since November 12 after a rebound above level 103.30. The pair is approaching the previous support at level 103.30. The selling pressure will resume if the current is broken. The Yen will resume an upward move if the support holds. USD/JPY – Daily Chart Daily Chart Indicators Reading: The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The pair has fallen to level 40 of the Relative Strength Index period 14. The pair is in the downtrend zone and capable of falling. USD/JPY Medium-term Trend: Bearish On the 4-hour chart, the pair has been in a downward move after rejection at 105.00. On November 18 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the market will fall to level 1.272 Fibonacci extensions. That is the Yen will reach the low of level 103.23 and reverse. USD/JPY – 4 Hour Chart 4-hour Chart Indicators Reading The USD/JPY pair is currently above the 25% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The SMAs are sloping downward indicating the downtrend. General Outlook for USD/JPY USD/JPY has been on a downward move but the selling pressure is reaching bearish exhaustion. According to the Fibonacci tool analysis, the Yen will fall and reverse at level 103.23. Source: https://learn2.trade 
    • EURJPY BEARISH MOMENTUM REMAINS TOWARD 123.00 LEVEL EURJPY Price Analysis – November 20 The EURJPY pair is attempting to close beneath the 123.37 price zone as speculative interest stays trapped between coronavirus outbreaks and vaccine hopes. The pairs selling momentum remains toward the 123.00 level. Key Levels Resistance Levels: 127.07, 125.00, 123.37 Support Levels: 122.37, 121.61, 119.31 EURJPY Long term Trend: Ranging As seen in the daily time frame, the downside pressure is expected to accelerate if EURJPY breaks below the 123.00 support, exposing the ascending trendline support and the 122.37 low. Meanwhile, the moving average 5 and 13 stays mixed for a range in the coming sessions. If the 123.00 support holds, a surge towards the 123.40 level could be expected during the following trading session. However, a barrier around the MA 13 could serve as a limitation for bullish traders within this session. Lower here a firm breach of 119.31 level will argue that the rise from 114.42 level has completed and turned the focus back lower. EURJPY Short term Trend: Ranging The intraday bias in EURJPY is staying in consolidation with the current recovery. A much more decline is mildly in consideration with 123.37 minor resistance level intact. Beneath the 122.37 level will target a test on the 121.61 low level initially. The resolute breach there may restart the trend from 127.07 level with another decline to 119.31 key support level. On the upside, though, a breach of 123.37 minor resistance level may shift sentiment back to the upside for the 125.00 level instead. Source: https://learn2.trade 
    • Let’s skim some features of Dominion from the manual 1. Dominion is a black box with votes ultimately tabulated in a central server system. Who has access to the central server and where is the manual and security reviews of that server software? 2. Local IT can clandestinely change settings to potentially alter an entire election. There are no checks and balances or observers of the local IT guy when he accesses machine debug and admin settings. Its unclear if a log exists. 3. Many complex rules decide how the “straight ticket” option works, but he system can be set up to ignore votes for individuals if a straight ticket vote is selected. 4. Network Security is very weak since all software access keys use the same cryptographic pair. This gives plausible deniability to whoever potentially decides to mess around with voting settings. It cant be proven who changed a setting since everybody has the same key 5. Digital certificates are not protected by password, and Dominion user manual explicitly says not to enter a password. This enables potential for bad actors to MITM attack data traveling over network between precinct tabulator and central tabulator. 6. Cryptic “split rotation” function that features the ability to “force a maximum deviation”. There is no definition of a “split rotation”, so we cannot know what “force a maximum deviation” means in this instance. 7. Settings can be changed during evening downtime on first night of voting. Much easier to change settings on hundreds of machines than to forge thousands of ballots. A couple of people can do it quickly. 8. The word “Cast” became “Print”, obfuscating the moment when your vote becomes officially cast. Reason for the semantic changes requested by the State of Pennsylvania to the Dominion voting software is currently unknown. 9. There is an option to force the vote scanner to “overrun” a preset amount of ballots every time anybody pauses the scan mid-batch. “Overrun” is undefined. Potential for abuse is high with this function, which was added shortly after 2018 mid-term elections.   ... Americans have a bad and chronic case of “it can’t happen here” ... I'm just sayin'  
    • “The press in our free country is reliable and useful not because of its good character but because of its great diversity. As long as there are many owners, each pursuing his own brand of truth, we the people have the opportunity to arrive at the truth and to dwell in the light. The multiplicity of ownership is crucial. It’s only when there are a few owners, or, as in a government-controlled press, one owner, that the truth becomes elusive and the light fails. For a citizen in our free society, it is was an enormous privilege and a wonderful protection to have access to hundreds of periodicals, each peddling its own belief. There is safety in numbers: the papers expose each other’s follies and peccadillos, correct each other’s mistakes, and cancel out each other’s biases. The reader is was free to range around in the whole editorial bouillabaisse and explore it for the one clam that matters—the truth.”  E. B. White That is gone. And social media is blatantly censoring free expression of viewpoints. ... But,. more insidious than top down media censorship is self censorship.  ... fear of being ‘cancelled’ socially "Media censorship is a shift in the flow of information, while self-censorship is a shift in consciousness. It is the dangerous cornerstone of group-think."  Dylan Thomas     just saying
    • Exchange, supply and demand on them and of course arbitrage between exchanges and starting from recently derivative instruments like CFDs on bitmex 
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.