Post
Topic
Board Trading Discussion
Re: How to get rid of emotions when trading
by
Orville_Brown
on 03/08/2018, 05:13:34 UTC
Active emotional detachment:
There is something called Tilt in Poker. Some players will actively try to insult players after bad beats to make the go tilt, or "emotional". This will result in very bad decision making. Maybe you remember Zinedine Zidane in his very last World Cup Game, head butting the italian player and getting sent of the pitch with a red card. The worst possible outcome. TILT.
If you still feel like you get emotional about trades, there are a few things you can do: Lowering your margins, lowering your leverage, take a break, breathing exercises, watch your favorite series or listen to music. Get a little distance to your trades, before continuing. NEVER trade on TILT.

How are you dealing with your emotions? Anything to add or to take away from this?

This one in particular is especially useful. Understanding that a loss is a loss and nothing more. Then move on and live for today.

This is where a lot of traders (myself included) have failed. I've blown my account just because I thought that I could "get even" or "make up for" a loss. Luckily, that account represented less than 10% of my net worth, so it wasn't a critical mistake. The second part of effective trading that goes with emotional management is not putting too much into the game. Risk management is just as important, if not more important than emotional.

Also, I wouldn't say "how to get rid of emotions" because we are human and can never truly get rid of them. This creates the impression that we should be fighting them. Instead, we need to accept, acknowledge, and proceed.