{quote} They will feel more better if they set their emotions out from trading, IMO!
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Perhaps. What was described, however, sounded like people were having some sort of nervous breakdown, and that's not easy to recover from, unfortunately.
For looking into the psychology of your trading mind, I would recommend reading "Trading on the Zone" by Mark Douglas, and "The little book of Behavioral Investing" by James Montier. Very informative reading.
For looking into the psychology of your trading mind, I would recommend reading "Trading on the Zone" by Mark Douglas, and "The little book of Behavioral Investing" by James Montier. Very informative reading.
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I had heard of the former book, but not the latter. Thank you for the recommendations.
{quote} I don't know about going insane, but the risk of burning out emotionally is very real. It exists with every job, really, trading is no different.
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I do agree with you, emotional outburst is inevitable everywhere.
But Even I have seen people going real crazy about their trading which made the game even riskier for them.
{quote} I do agree with you, emotional outburst is inevitable everywhere. But Even I have seen people going real crazy about their trading which made the game even riskier for them.
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Newbies, unfortunately, often underestimate the need for psychologically training themselves the same way they study analysis methods, and for some of them that has unpleasant consequences.
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Joined Mar 2017
|490 Posts
This is why, I am trading with a fixed trading lots fixed! I see, multiple trading lots size dominate my emotions and greed! In this case, fixed trading lots size is much secure! Money Management is the core point of success.
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Joined Mar 2013
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Trading is difficult. In trading, we can get quite a bit of stress. When a position begins to turn against us, that's when we begin to feel it. The red arrows on the chart accompany all the fears of failure that rush through our brains in nanoseconds. As the loss continues to stack against us, that stress becomes more and more profound; making the concept of taking action even more intimidating. And this is precisely how our fight-or-flight instinct can negatively affect us in trades, as we allow ourselves to make decisions in extremely stressful states that, often-times, don't do us any favors.
Trading is difficult. In trading, we can get quite a bit of stress. When a position begins to turn against us, that's when we begin to feel it. The red arrows on the chart accompany all the fears of failure that rush through our brains in nanoseconds. As the loss continues to stack against us, that stress becomes more and more profound; making the concept of taking action even more intimidating. And this is precisely how our fight-or-flight instinct can negatively affect us in trades, as we allow ourselves to make decisions in extremely stressful...
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That is pretty much what happens, I agree. What do you do to repress that response when you trade?
This is why, I am trading with a fixed trading lots fixed! I see, multiple trading lots size dominate my emotions and greed! In this case, fixed trading lots size is much secure! Money Management is the core point of success.
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But I don’t think so fixed lot trading size always can control limited emotions. It depends on markets movements.
{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..
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Sorry really late response...
Well i just like to keep my pip count high for the most part... Although it is hard to keep an eye off the money but I ultimately watch my pips for entry and SL/TP
The most critical factor that ought to be considered genuinely is cash administration, maintain a strategic distance from feelings, put your limits every days and don't break (put TP/SL) on every last position. Make your framework as Mechanical as possible...that implies that you turn into a robot when trading. Figure out how to withdraw from your Emotions and w/o getting all Zen on you recognize and watch your contemplation's. It will take a great deal of training and tolerance to shield away feelings and uneasiness from trading yet rehearse they say makes culminate.
