Post
Topic
Board Trading Discussion
Re: Traders ill habits unnoticed [emotion is the trader's worse enemy]
by
EarnOnVictor
on 01/02/2024, 06:52:11 UTC
Most novice traders hold on to loses and let go of wins. Sounds ridiculous when you loud it yet several studies have shown that it's the most common mistake made by traders. It is simply our humanity and the completely irrational but understandable fear of loss.
You are very correct and I must say that this still happened to me yesterday to the extent that I am still not able to take my mind off it. Emotion is a bastard in trading, we must kick that motherf**ker off our minds if we must succeed in the market trading. Can you imagine? What I was supposed to gain yesterday was reduced by 9 times simply because I was kinda afraid. I don't even know why, the fear of what? That is what I often tell traders, it doesn't matter how long you have known the market or traded it, it could always infest you. As some people would say, it could have a spirit, well, I will not speak from or against that, but all I can say is that we traders should encourage ourselves instead of that. We should know what we want to do before doing it, and when we do it, we should avoid emotions at all costs.

The emotion is bad to the point that you will be afraid to do what is right, and when you miss out, you will be mad. So why not shun emotion and do the right thing? That is the solution. Again, it could force you to do what is wrong, and when you have done it, you will start realizing the issue and will say you could have done better, despite knowing what to do. So funny! Above all, we should be disciplined, once you know what you are doing, just forget about the emotion, and one important way to do this is to have your good stop loss placed so that you do not get afraid of account for liquidation, you would have known the maximum amount you could lose in that style of trading.

Lastly, you should stay away from your trading chart as much as possible, which is why I like to open the trade in the trend of the market only. This will be able to sustain my position till the long hours I will visit the chart again. Without mincing words, the only antidote to emotion is discipline, let us all be disciplined in trading, it is very important.