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  • Becoming an Emotionally Intelligent Trader

    From dailyfx.com

    -Why Emotions Get Shunned By Traders -A Better Way to Look at Emotions -Applying Your Emotions to FX Trading Appropriately “Instead of hoping he must fear and instead of fearing he must hope.He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.” -Jesse Livermore We’re only in it for the money. That key trading concept is obvious but shouldn’t be forgotten. The reason why this mantra is key is because we’re not into trading for the following reasons: -To Beat the Market -To Show People How Smart You Are -To Feel Excitement through use of Aggressive ... (full story)

The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader has to develop clear discipline and face the truth of each trade.So many traders kid themselves. Facts are facts at the end of the day in the shop we either have had a good day and sold loads of goods for a profit less some costs or overheads or no one has been in the shop and we went outside the shop and sold goods at a reduced price so we had high business costs and no profit that day.
For what it is worth I have found that the way I view life and trading is not really any different other than in trading discipline focus belief refusal to deviate from the plan is paramount.I never talk about my work to non traders either. That is a sure fire way to mess your head up LOL!
Happy trading.
Very wise words and I agree. You have to see it as a business and nothing else.
Quoting reldas
The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader...

true
Good post.

Quoting reldas
The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
So true.

The glazed look in the eyes of a non-trading discussion partner when I start talking candlesticks is like the lights are on but nobody is home.
Quoting reldas
The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader...
Good job, thanks for sharing.
Quoting reldas
The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader...
Thank you and nice work, saved me from having to read the article.
Come with me if you want to live....
Quoting reldas
The emotional game of life applies equally to trading as to anything else.Before ever going into a trade one must be in the Zone. There are many strategies for achieving this.Simply studying mindfulness has helped me a great deal.
I meditate and have clear visual images of the set up that I have found gives me an edge NOT a guarantee of success.
All businesses have overheads trading is exactly the same.Ido not have "losses" I have "costs" That simple change of use of language puts what most people call 'losses' into perspective.
Then the trader...
All very good, except that trading can never be, will never be "a business" in the normal sense of the word. A business produces goods and / or services. Trading produces money based on risk. Therefore it is the business of gambling, perhaps a step higher than playing the lottery or the pokies at the casino, but effective gambling rules will never be the same as effective business rules which is an activity that produces commercially viable products.
Quoting Mingary
A business produces goods and / or services.
I get your point, but traders are doing a "service" so to speak. traders who buy low and sell high are rewarded for improving market efficeincy, while those who buy high and sell low are punished for degrading market efficeincy... in theory that is
Quoting reldas
I meditate and have clear visual images
nice comment... yoga and meditate before each trade? much better preparation in my mind to get in the "zone" is by somewhat having an idea of statistics for your set-up based on previous historical price volatility and then combining that with proper risk management. knowing ahead of time what your estimated risks are according to previous historical pricing ect..
Quoting Ipxx.xxx1202
I get your point, but traders are doing a "service" so to speak. traders who buy low and sell high are rewarded for improving market efficeincy, while those who buy high and sell low are punished for degrading market efficeincy... in theory that is
Yes, they bear the risk so that the producers don't have to.
What's interesting is that a trader benefits society when he loses, because on the other side of the trade is a producer -- the real contributor to society.
Works like this:
Prices are high, producer locks in a good price (sell @ xxx), prices go down, speculator loses.
Prices are low, producer locks in a good price (buy @ xxx), prices go up, speculator loses.
Therefore if you want to continue to have bread in the store, you must lose at trading.
Thankfully you spared yourself, I clicked through and read it and it was pointless drivel.


Quoting Ill-b-back
Thank you and nice work, saved me from having to read the article.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
-To Beat the Market
-To Show People How Smart You Are
-To Feel Excitement through use of Aggressive Leverage

These are the things makes trading exciting among the peers, isn't it?

If you be able to profit CONSISTANTLY according to you well designed plan, is that you beating the market?

If you be able to somehow master the art of trading and have completely control over your freedom, is that somewhat make you smarter or cooler?

If you be able to plan the trade thoroughly and make a huge home run profit with 50% margin a position, doesn't that excite you? doesn't that give you a sense of hard work paying off?

Yes, we are in for that money, that's for the most part, but could there be anything else MORE?

I don't think eliminating these elements would make you so much emotionally intelligent. I see them as the core motivation of trading, and it's just what do you do to use them as your edge makes the emotionally intelligent.
If u luv happiness, start w/ discomfort, make friends w/ pain and failure.
Bragging harms the psyche.

I agree that talking about trading to much to others who dont fully understand the true concept will not build up your self esteem in a healthy way.

Repitition, is about staying consistent and retaining the right information to be more successful.

There is nothing wrong with treating your investing/trading as a business. If your are a disciplined person this will work like a business.

I know other great traders who trade completely detatched from their emotions. They are the most successful of them all.

I have only been trading for several years now and I am somewhere in between.

It always depends on the day TOO
I find that if you have tested a system long enough (years) and have tweaked, tested, lost and won, only then will you have confidence in the system and be more calm. I have finally come to that place in my trading life.
Quoting bglenn
I find that if you have tested a system long enough (years) and have tweaked, tested, lost and won, only then will you have confidence in the system and be more calm. I have finally come to that place in my trading life.
What you say is so true.
Also many thanks to all the people who have made kind comments
happy trading
"A decade ago, Rogoff argued that there was a one in 10 chance of a sharp slowdown in China in any given year. These days, he says, it is more like one in five. "

One in 5 is not a big number.
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  • Posted: May 16, 2014 1:32am
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    Category: Educational News
    Comments: 16  /  Views: 5,246