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Emotions (money management)

  • #41
  • Mar 9, 2017 6:34am Mar 9, 2017 6:34am
Quoting wattsema
Management of ones emotional state is difficult especially for a newbie in forex trading. After acquiring all the knowledge about forex and practicing demo account a new trader should test the real conditions in a live micro account. And yes a little fear of losing money can be good as it keeps the trader in control and he will only invest the money he can afford to lose.
True. But losing control of that fear and letting it grow exponentially leads to disaster. It’s happened to me a few times, it was a very unpleasant experience.
  • #42
  • Mar 11, 2017 3:40pm Mar 11, 2017 3:40pm
Emotions doesn't hurt your trading. Acting on those emotions does!
Emotions are energy based and if you welcome the feelings, the energy declines. Not accepting them amplify the energy and can hurt your trading.

This is not my opinion, it's science.

Happy trading
  • #43
  • Mar 13, 2017 7:25am Mar 13, 2017 7:25am
Fear is an emotion encountered in expectation of a trade because of your views & experiences. But by having faith and trusting yourself to act rightly under any given set of conditions, you can offset this fear. Remember, what you really fear is not the trade, but your weakness to act in a suitable manner when you need to.
  • #44
  • Mar 15, 2017 5:08am Mar 15, 2017 5:08am
Quoting mlawson71
{quote} True. But losing control of that fear and letting it grow exponentially leads to disaster. Its happened to me a few times, it was a very unpleasant experience.
I could relate to that one! Excess fear of losing can make one really vengeful and anxious and what happens next is known to all.
  • #45
  • Mar 15, 2017 6:26am Mar 15, 2017 6:26am
Quoting wattsema
{quote} I could relate to that one! Excess fear of losing can make one really vengeful and anxious and what happens next is known to all.
Don't even get me started on what a bad idea revenge trading is. "Digging yourself deeper" is a great way to describe it.
  • #46
  • Mar 15, 2017 8:13am Mar 15, 2017 8:13am
Emotion is mainly considered as a foremost enemy in Forex trading , I request for the newcomers please don’t trade at all in an emotional state , because the emotional trade can affect the negative result of your trading , actually for removing emotion from our trading we have to pass a long period in this trading place .
  • #47
  • Mar 15, 2017 12:23pm Mar 15, 2017 12:23pm
Quoting MarkFxAnde
Emotion is mainly considered as a foremost enemy in Forex trading , I request for the newcomers please dont trade at all in an emotional state , because the emotional trade can affect the negative result of your trading , actually for removing emotion from our trading we have to pass a long period in this trading place .
I kindly disagree Mark. Emotions have never made a bad trade. Taking action on those emotions is probably why 95% of all retail traders fail. You can't say NO to emotions and then on the other side figure out when you are in a state where you shouldn't be trading.

To be more exact, you can't make any decisions without having some emotions.
Antonio Damasio - https://en.wikipedia.org/wiki/Antonio_Damasio
made a a discovery that people with damaged amygdalae (where most of your emotions are being generated) cannot or have huge difficulties making any decisions at all.
So when you make a decision on buying EUR/USD your emotions are making that decision for you, but if you are trying to keep your emotions out of that decision, you will struggle "pulling the trigger"... anyway, that's just my view on it.

At the end it all depends on the profit you are making :-)
  • #48
  • Mar 15, 2017 10:31pm Mar 15, 2017 10:31pm
which should be unrestrained emotion well, because the emotions that will destroy run trading well, for it to be able to increase the ability and emotional trading can be unrestrained by trading on a demo account with preparations to maximize the ability of trading
  • #49
  • Mar 16, 2017 12:33pm Mar 16, 2017 12:33pm
Quoting Croatian
The easiest way to "cut off emotion" is to turn your trading strategy into an EA. At least a semi-automated one which helps you out with the entries and/or exits. For average trader, the only ways to get un-emotional is...
1. years of screen time NO NEED; YOU CAN RUN A SIMULATOR WITH REAL DATA TO LEARN "FASTER" HOW TO READ THE CHARTS
2. born without emotions NO RISK, NO GAIN.. PERIOD; ONCE YOU UNDERSTAND THIS YOU CAN MOVE ON =)
3. trading tiny capital whereby wins and losses don't make an itch Good luck! YOU CAN...

my answer on your reply.. i do agree to a "semi automated EA" it can help you with the "mechanical" part of your strategy (JUST to check the rules are in place) BUT the entry/exit its up to you; some discretion is always needed to enter a trade
  • #50
  • Mar 17, 2017 7:46am Mar 17, 2017 7:46am
Quoting mlawson71
{quote} Don't even get me started on what a bad idea revenge trading is. "Digging yourself deeper" is a great way to describe it.
Yaa its really a bad idea. You can lose much more than your capital once this feeling of revenge gets hold of you.
  • #51
  • Mar 18, 2017 5:35am Mar 18, 2017 5:35am
Treat money management like a real business. Simple quote but loads of meaning. If you run a business you will know.
Self discipline It is a practice
  • #52
  • Mar 18, 2017 6:51am Mar 18, 2017 6:51am
Quoting wattsema
{quote} Yaa its really a bad idea. You can lose much more than your capital once this feeling of revenge gets hold of you.
Indeed. There's also the psychological toll such an action can have on a person. Losing money like this can really crush one's confidence, and confidence (but not arrogance) is so necessary when trading.
  • #53
  • Mar 20, 2017 4:03am Mar 20, 2017 4:03am
Quoting mlawson71
{quote} Indeed. There's also the psychological toll such an action can have on a person. Losing money like this can really crush one's confidence, and confidence (but not arrogance) is so necessary when trading.
yes that's why more able to feel comfortable in running trading well have to do that in the process of doing such in learning. And factor in losing money in forex is because of factors not optimal capabilities.
  • #54
  • Mar 24, 2017 1:24pm Mar 24, 2017 1:24pm
Actually without proper money management even the best strategy would yield poor result. Money management begins with determining the lot size or allocation of capital to a trade. This is followed by assessment of risk to reward ratio and usage of stop loss and take profit facility. Unless and otherwise a trader is adept in all the criteria mentioned above, it would be very difficult to come out successfully in the long term. Very few traders are exceptional in money management and so they perform exceedingly well than others even when similar trading strategy is used.
  • #55
  • Edited 3:07pm Mar 26, 2017 2:24pm | Edited 3:07pm
I'm a beginner Trader, one thing I find helpful is watching the movie Bulls and Bears (1998). Anyone else watched it before?

There is a successful Trader the talks about keeping an eye on your trades and the price/market to help remove the emotions/attention from your profits and losses...

I try to keep my attention on the pips instead of the money weather is positive or negative.
"Follow the comet"
  • #56
  • Mar 26, 2017 5:38pm Mar 26, 2017 5:38pm
I have never came across anyone who knows how they saved their trade using the emotions. we all know the stories of the trouble that have caused because of the emotions. so surely you can see that forex can be problematic that way and you have to understand that point.
  • #57
  • Mar 27, 2017 3:25am Mar 27, 2017 3:25am
Quoting alxtr8der
I'm a beginner Trader, one thing I find helpful is watching the movie Bulls and Bears (1998). Anyone else watched it before? There is a successful Trader the talks about keeping an eye on your trades and the price/market to help remove the emotions/attention from your profits and losses... I try to keep my attention on the pips instead of the money weather is positive or negative.
If it works, why not? I'm not sure I'd be able to focus entirely on pips though. The market and price changes are of course the basis that needs to be considered, but how you are moving all with your trading is signalled in the profit. It's like a signal that you are on the right track (for the moment of course, as changes can be instantaneous). On the other hand, from personal experience I know that constantly checking the profit can be quite focus-drinking and emotion-unleashing..
  • #58
  • Mar 27, 2017 6:48am Mar 27, 2017 6:48am
Quoting Jordan345
{quote} If it works, why not? I'm not sure I'd be able to focus entirely on pips though. The market and price changes are of course the basis that needs to be considered, but how you are moving all with your trading is signalled in the profit. It's like a signal that you are on the right track (for the moment of course, as changes can be instantaneous). On the other hand, from personal experience I know that constantly checking the profit can be quite focus-drinking and emotion-unleashing..
I wish I could focus on the pips only. I am always brimming with anxiety, it's in my nature, and trading just exacerbates the problem.
  • #59
  • Mar 27, 2017 11:48pm Mar 27, 2017 11:48pm
Quoting forexmnstr
Hello The most important factor that should be considered seriously is money management ... avoid emotions ... place your limits each days and dont break ... (place TP/SL) on each and every position ... and there is many more ... please add more points because this is the most if not the only thing that should be taken seriously before even start thinking of placing an order or position ... analyse carefully the market befor doing any thing...... Please traders add more point based on your experience
Focus 100% on the markets when you are trading and in position. Do not listen to music, go to the grocery store in a trade, or do anything that can otherwise curtail you once you come back to see the trade didn't go your way.
  • #60
  • Mar 30, 2017 4:16am Mar 30, 2017 4:16am
emotion should be in our control well, the emotions will destroy in running trading. It's better to always execute trades with discipline so that more can be maintained in the control of emotion, so better able to money management managed properly
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