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Additional Username
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Joined Dec 2015
|3,529 Posts
I think a lot of people agree in that regard. I also think that trying to become emotionless is very unhealthy. It's not something that can be achieved and as a result trying just leads to bad consequences.
What a trader needs is to acquire confidence in the strategy through years of practice in which one can verify that it works.
Only when you have tested and verified your trading, you will develop a mental state that will allow you to manage your bad trades without losing your ability to analyze the markets.
Conversely, when one has not the sufficient experience, the lack of confidence will make impossible to wait until the good trades reach their profit levels and the fear of losing more will lead the inexperienced trader to lose trade after trade.
One cannot become emotionless. What a trader needs is to acquire confidence in the strategy through years of practice in which one can verify that it works. Only when you have tested and verified your trading, you will develop a mental state that will allow you to manage your bad trades without losing your ability to analyze the markets. Conversely, when one has not the sufficient experience, the lack of confidence will make impossible to wait until the good trades reach their profit levels and the fear of losing more will lead the inexperienced...
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Exactly!! Confidence in your method/strategy is what is needed to allow you to get out of a bad trade or not get in one that doesn't meet your criteria. Not all trades will be profitable, and confidence in your method will allow you to cut losses and continue looking. It is inexperience that causes traders to feel like every trade MUST be held until profitability, when your money is better utilized by getting out of a bad trade and putting it to work in a good one.
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Additional Username
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Joined Apr 2018
|459 Posts
using strategies in demo is very good approach , it always supports to avoid risk when trading in a real account. when i was newcomer , used high leverage in demo to see the performance how it works.
You should be emotional in your life but not in the cases when logical thinking is required.
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I understand where you are coming from, however, science shows that your traditional thinking on being "rational" isn't what it seems. It turns out that behind your rational, there are always emotions in play when it comes to decision making and especially during uncertainty.
If you want to make a rational decision, you are much better off including your emotions than putting them aside.
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Commercial Member
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Joined Jan 2017
|1,389 Posts
If you are emotional while trading then you are either
A) taking risks beyond your accounts threshold for disaster
B) do not have confidence in your strategy and are consumed by fear
Overcoming the first is easy, just stop taking accessive risks. Overcoming the second is ultimately a function of finding a consistent edge. Until you do that and experience what consistency brings, you won't ever be able disassociate emotion with trading. The amygdala is the part of the brain that is responsible for emotion. It affects how a person will respond to events and when you don't know what you are doing, it responds with fear.
If you are emotional while trading then you are either A) taking risks beyond your accounts threshold for disaster B) do not have confidence in your strategy and are consumed by fear Overcoming the first is easy, just stop taking accessive risks. Overcoming the second is ultimately a function of finding a consistent edge. Until you do that and experience what consistency brings, you won't ever be able disassociate emotion with trading. The amygdala is the part of the brain that is responsible for emotion. It affects how a person will respond to...
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I'm a very emotional person, but there is a huge difference in having emotions, and then acting them out. There is no way around feeling bad when you take a loss, exit too early etc. but to be able to put words on your emotions will help you not acting out your emotion.
Having emotions never cost anyone money. Acting them out is a disaster for you account :-)
I would recommend everyone to have a look at Denise Shull's work on emotions and decision making.
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Joined Feb 2019
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Status: Junior Member
|4 Posts
Emotionless is never an option you have to control your emotions you have to keep your mind in control every time.
btw the steps you gave are very beneficial
Both cause traumatic experiences, delivering overconficence or traumatic fear.
Exposure to markets must be really gradual. First simulate, them demo and simulate, then start trading 0.01 lots max demo and simulate.
Always gradual. The path takes years to be completed. Never expect trade in less than two or three years after previous active training with virtual money.
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Joined Jun 2015
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Status: Always Learning
|395 Posts
I get what the OP is trying to say. Becoming completely devoid of emotion in daily life is pretty unobtainable without being severely neuro-Atypical.
As someone else stated, confidence is what is required, but you can have confidence and still be emotionable which will affect trading. If you are an emotional person, no amounts of cofidence in a system is going to stop you reeling from a loss.
i think the zen of trading is Stoicism.
This is what is practiced by successful traders. Mr Pip said that you enter a trade based on all the factors that point to it being successful, HOWEVER as soon as you place the trade, you are at the behest of the market. 10 million things can happen that take your trade to either profit or loss. You also have NO effect over the trade as soon as you place it.
This is why trading rules are SO important. Plan your trade, and trade your plan.
You can only affect IF you enter a trade. You assimilate ALL the information, you consult your trade plan. You check, and you DOUBLE check. You decide what the chances for success are - does this conform to your tolerance... and then you enter the trade. The emotional part of a trade, shoudl not be once you are in it, or the result.
If you can hand on heart say that you have applied all the reasoning you can to enter a trade to satisfy your strategy... even if it is as simple as an MA cross.. then you are 90% the way there to being successful.
Emotions in trading come more from inexperience and frustration of not knowing what where doing. A inexperienced trader opens a trade loses, opens another one and loses again he gets frustrated and emotional because he doesn't know what he is doing. A trader with more experience and in the same situation with 2 losses he will still be frustrated, but he will be way less frustrated because he knows that he did everything correct. In the future, and in a similar situation the trader with experience will do exactly the same thing. The emotions will always be there its just that a experienced trader has the knowledge that allows him to control his emotions.
The sacrifice of a few is good for the many. (On a hunt 1 hunter dies, but the whole tribe will eat)
Therefore taking risks is rewarded.
If taking risks is rewarded, then the tribe must teach its members that it's ok to lose (one's life) -- if you die on the hunt, you are a hero
Therefore the retail forex tribe will teach its members that it's ok to lose (a little ... a lot ... one's account ... etc..) -- losing is part of trading, you will reap the rewards soon (;
Hundreds of thousands of years of evolution has made losing more "rewarding" than winning.
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Joined Apr 2019
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Status: Junior Member
|3 Posts
I believe that in trading there one very important principle, that everyone knows but few practice. Don't trade what you are not prepared to lose!
Probably breaking this rule is the first cause of triggering your emotions, whether it is euphoria for winning or anger for losing.
{quote} The sacrifice of a few is good for the many. (On a hunt 1 hunter dies, but the whole tribe will eat) Therefore taking risks is rewarded. If taking risks is rewarded, then the tribe must teach its members that it's ok to lose (one's life) -- if you die on the hunt, you are a hero Therefore the retail forex tribe will teach its members that it's ok to lose (a little ... a lot ... one's account ... etc..) -- losing is part of trading, you will reap the rewards soon (; Hundreds of thousands of years of evolution has made losing more "rewarding"...
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I see, thank you for elaborating! That's an interesting way of looking at trading and I think I mosly agree.
