Emotions is a weapon used against traders causing them to move out of a trade untimely which may eventually cost them loss.
How to avoid emotions:- set up a TP(take profit) and SL(stop loss) for your trades
- Stay away from the particular trade
- Get in some activity that will keep you busy
- Do your hubby activities at that moment
- set up hours interval to check your trade
- watch tvs and Go for walk
Note:Some of these might not be applicable if you are into scalping.
Trading is pure math. Emotions have nothing to do here
I don't think it's pure math as your trades can actually be different based on your emotions and mental condition. You won't be able to make the right decisions and make the correct trades if you are mentally unstable and vice versa. So, you can't say that emotions have nothing to do here, It's emotions that make someone panic and sell their assets, and it's also emotions that make someone FOMO and buy a token at a very wrong time and lose their investment or a part of it.
Your emotions can always make the best of what you do and it can also ruin everything, so emotions play a great role in anything that you do in life. Those who have control over their emotions will usually get success in whatever they do while others will have to face a lot of failures in life.
That's right, how can someone say that emotions are not involved in trading, I don't understand that statement. We must remember as you said that mental and psychological is very necessary, what is the use of it? discuss a little, mental and psychological will greatly help you in finding the right decision, okay you have a strategy that is 100$ accurate for example, but still if you do not have a good mental and psychological how can you dare to open a position, and obviously it will help you to minimize hesitation or fear when you want to open a trade. First you have a strategy that is believed to be effective and to perfect it you also need a calm mentality and psychology to be able to turn the trading results into profits. As you said it is absolutely true, this is not a matter of mathematics but also very involved with the mental and psychological of a person who can minimize your emotions to stay guarded,
it is not uncommon for people to make the wrong decision because they may be late opening a trade because of doubt.
So yes, the point is that emotions are very involved in trading and if you have a strong mentality and psychology to always remain calm then you will be able to minimize your emotions because if I let it maybe you will experience MC, that case has happened a lot.
Those people who have said that emotions and psychological aspects arent involved on trading is basically that shows or means that those people didnt actually have that trading session ever since. No one would really be to those people who do have actuial experience in trading will really be able to say up such words which is really that totally impossible since these things are the main reasons on why you would really be making out some decisions basing up on the analysis that you had made. You would really be needing to set up some back up plans if ever one of the analysis you had made did turn out to be wrong because of that sudden market changes which we know that its always been that unpredictable and random.
Therefore, it would really be that resulting into such condition which it would really be mixing out your emotions and might really be that resulting into alterations of your earlier analysis
which might lead into that more losses and this is something that you should really be needing to control. If you dont have that kind of discipline towards self then you are really that prone to lots of errors and mistakes just because did make out some change basing up on what you had encountered. Well, this isnt something new and there's always a chance that you do alter out your earlier
decisions just because you do become that impulsive.