How do you control fear and greed? | Forex Factory

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How do you control fear and greed?

  • #1
  • First Post: Oct 12, 2014 3:57pm Oct 12, 2014 3:57pm
I am noticing I can't control my emotions well, so I am wondering how you successful traders control the fear and greed?

One thing I have noticed is smaller positions will prevent me to feel both, fear and greed. But that way I can't make any decent return! However, when I take small positions I close profits in up to 75 - 85% of my trades. Only to lose most of the profits in the next trade that is not so small - I still don't go huge - never risk more that 10% in all open positions at one time. When I take 0.01 trades it's almost like I don't care, but when I take a position with 2x leverage I can't think straight anymore.
  • #2
  • Oct 12, 2014 4:19pm Oct 12, 2014 4:19pm
in the beginning when i tried to control fear/greed/emotions - didn't go well.
Next, gave into fear/greed/emotions - closed/entered trades making little sense only to find the market go in/against my trade and me not knowing why.
Next, trade strictly (not so much) with my strategy and know the what/why i enter/exit a trade - no problems compounding or adding to a winning position.

Most important step was trading with emotions and then seeing market turn In favor of the trading positions because of entering/exiting markets prematurely(or you can replace the word with a more suitable word).
A trade should be based on an assumption based on facts
  • #3
  • Oct 12, 2014 5:16pm Oct 12, 2014 5:16pm
The best way to control fear and greed is to trade smaller. Also, when you make a trade don't look the trade, don't reanalyze (after you made a trade emotions are involved), the best way is to set TP and SL and one of them will be hit. For this approach you need to have a trading plan and believe in your system. And I recommend you trading on higher time frames. You have more time to react.
  • #4
  • Oct 13, 2014 3:46pm Oct 13, 2014 3:46pm
Thanks guys, although I already knew all that... Unfortunately for me there is a difference between knowing that and executing - that.
  • #5
  • Oct 13, 2014 3:58pm Oct 13, 2014 3:58pm
I donīt know if this helps. ou donīt need to control your emotions (probably a very hard thing to do anyway, if at al possible).

You need to control your actions, thatīs vital. It might help you or not. But maybe think about it. Once you control youīre actions, other things may fall into place as well!
  • #6
  • Oct 14, 2014 11:17am Oct 14, 2014 11:17am
Quoting Fxism
Thanks guys, although I already knew all that... Unfortunately for me there is a difference between knowing that and executing - that.
If you are sure about your strategy and you know the rest of It then this should help " doitmotherfucker.com"
A trade should be based on an assumption based on facts
  • #7
  • Oct 14, 2014 3:13pm Oct 14, 2014 3:13pm
Quoting Mave
{quote} If you are sure about your strategy and you know the rest of It then this should help " doitmotherfucker.com"
funny and absolutely right!
  • #8
  • Oct 14, 2014 3:15pm Oct 14, 2014 3:15pm
Quoting Christianfx
I donīt know if this helps. ou donīt need to control your emotions (probably a very hard thing to do anyway, if at al possible). You need to control your actions, thatīs vital. It might help you or not. But maybe think about it. Once you control youīre actions, other things may fall into place as well!

Like @Mave said it is absolutely maddening when I exit a trade in negative only to see it turn around soon after I exited. Back to trading smaller positions...

Thanks all of you guys!
  • #9
  • Oct 14, 2014 3:21pm Oct 14, 2014 3:21pm
Quoting Fxism
{quote} Like @Mave said it is absolutely maddening when I exit a trade in negative only to see it turn around soon after I exited. Back to trading smaller positions... Thanks all of you guys!
partial exit/close might be a solution for that.
there is always, always another trade!!
  • #10
  • Oct 14, 2014 10:48pm Oct 14, 2014 10:48pm
dont trade with amount
do trade with %

Quoting Fxism
I am noticing I can't control my emotions well, so I am wondering how you successful traders control the fear and greed? One thing I have noticed is smaller positions will prevent me to feel both, fear and greed. But that way I can't make any decent return! However, when I take small positions I close profits in up to 75 - 85% of my trades. Only to lose most of the profits in the next trade that is not so small - I still don't go huge - never risk more that 10% in all open positions at one time. When I take 0.01 trades it's almost like I don't care,...
My Best Trade is Next Trade!
  • #11
  • Oct 14, 2014 11:00pm Oct 14, 2014 11:00pm
you need a system to follow a stop loss when your system fail thats all
have a nice day
focus while relaxed to see better
  • #12
  • Oct 14, 2014 11:48pm Oct 14, 2014 11:48pm
Great suggestion: go with smaller positions
alternative: Go with automated trading (software trading)

It removes your emotions on board, don't need to touch chart to do analysis and adds profit at the same time. But so far, most people don't do automated trading, since it is uncontrolled and people never trust computer (uncontrolled) and computer never trust human (they tend to break things / write buggy code) .

Been 8 years in trading and I still can't control my emotions until now. But I find the alternative way is far better (well, at least for myself). I've created apps few months ago, and still testing it. So far, projected 10% - 20% per month for 1.5 months testing (30% total).
If you ask me to code/fix your EA... it's probably not for free...
  • #13
  • Oct 15, 2014 12:12am Oct 15, 2014 12:12am
Confidence
  • #14
  • Oct 15, 2014 3:20am Oct 15, 2014 3:20am
Tiny size and have a plan. Put the plan on the chart, let the plan play out win or lose. Note what happened. After 20 traded plans analyze the result. Repeat.

If things work out very slowly increase size, note what happens.

You also might want to check this guy out: http://traderfeed.blogspot.fr/2014/0...s-fail-to.html
  • #15
  • Oct 15, 2014 9:36am Oct 15, 2014 9:36am
Quoting radityo.ardi
Great suggestion: go with smaller positions alternative: Go with automated trading (software trading) It removes your emotions on board, don't need to touch chart to do analysis and adds profit at the same time. But so far, most people don't do automated trading, since it is uncontrolled and people never trust computer (uncontrolled) and computer never trust human (they tend to break things / write buggy code) . Been 8 years in trading and I still can't control my emotions until now. But I find the alternative way is far better (well, at least...
My trading technique is discretionary, it's not that I don't trust the system, but my entries are not based on indicators or certain candle patterns. It is a mix of everything: long-term trend, fundamentals, future expectations + technicals. It's impossible to articulate it so I can't have it coded, because it constantly changes. My trades are not bad, how I manage them (or my emotions) is problematic.
  • #16
  • Oct 15, 2014 9:37am Oct 15, 2014 9:37am
Quoting 2+2=4ex
Confidence
Where do I subscribe for some of that?
  • #17
  • Oct 15, 2014 9:40am Oct 15, 2014 9:40am
Quoting Quidsey
Tiny size and have a plan. Put the plan on the chart, let the plan play out win or lose. Note what happened. After 20 traded plans analyze the result. Repeat. If things work out very slowly increase size, note what happens. You also might want to check this guy out: http://traderfeed.blogspot.fr/2014/0...s-fail-to.html
Thanks! Amazoned it instantly, I read Van Tharp's books, and mental edge in trading, trading in the zone etc etc, and the main difference between this guy you suggested and others is that he teaches how to manage MY emotions. I don't think my position sizing or trading has ever been a problem since I learned how to trade. It is me that is the problem. Will read it and update the thread.
  • #18
  • Oct 16, 2014 1:07am Oct 16, 2014 1:07am
My trading technique is discretionary,

it's not that I don't trust the system,

but my entries are not based on indicators or certain candle patterns.

It is a mix of everything

: long-term trend, fundamentals, future expectations + technicals.

It's impossible to articulate it so I can't have it coded,

because it Constantly changes .

My trades are not bad, how >>>>>>>>>>>>>>>> I manage them (or my emotions) is problematic. <<<<<<<<<<<<<<<<<<<<<<<< your 2 cents
  • #19
  • Oct 16, 2014 10:51am Oct 16, 2014 10:51am
The best way is to have a specific trading system/edge/whatever you want to call it and stick to it. It will take the emotion out of trading more than position sizing. Doesn't matter if you have Ģ1 or Ģ10 per pip. If you're not sure/not comfortable with why you have entered and have not carefully analysed your exit points for profit as well as loss then you will still have the problem.
I can recommend a book called Trading in the Zone.
  • #20
  • Oct 20, 2014 10:38am Oct 20, 2014 10:38am
Don't over leverage your positions, understand your margin requirements at all times and learn how to manage risk effectively. Far too many people let their losses run and cut their winners short. I would recommend keeping a journal of your trading activity which also notes your mental state and reasoning behind every entry and exit.. its a bit time consuming but when you look at back at it for analysis it can be invaluable.
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