One very thing that I have come to realize is that emotional swings are inevitable in trading. You can be feeling so confident and on top of the world after securing a huge profit, then suddenly the feeling of frustration and anxiousness sets in after a loss or setback. It's sometimes a rollercoaster.
I'll just share an experience with regards to this one because it happened to me just recently.Anyway, I'm also actively trading like most of the people here, and last week, something happened for the first time for me, and that is to I made profit for 7 straight days so basically a week that I'm making money constantly, then something bad happened when the market corrected massively just a few days ago. Those profits that I got for 7 days? I lost all of them plus a bit of my capital in just 2 days.
Crazy how I made money in 7 days, but lost it all in 2 days. Talking about how brutal the market is, but it's part of the journey, and I see it as learnings still.
What has always been helping me whenever this happens is to step away from the screen of my phone or laptop( as the case may be). I also try to stick to a plan, once I have set my entry and exit I try very much not to second guess cos the market is moving. Journaling my trade also helps me to notice patterns in my emotional response.
It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.
Stepping away from the screen is for me helped me not to be stressed that much as well. Looking at the charts more often will also make you feel more stressful as well. What I'm doing is that, I'm analyzing the market, and when I see a good position, I enter to that coin, then setting a stop-loss, and take profit then I'll leave it, the next time that I will look at that chart again is whether it hit my stop-loss or take profit, or the next day already just to see what happened with my trade. It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.
Emotions are the biggest enemy when it comes to trading because there will be times where you will be making a decision based on what you're feeling, and not because of what the charts are telling to us. Experience matters in trading, and the more you trade, the better you will be therefore, the better you will be as well in handling your emotions.
How do I manage my emotions? Accepting my losses and learn from it, and looking at my profit as something like it's nothing for me. I don't know, but that works for me.