how do you keep emotions out of trading?

Build a system that does not require you to predict the market. The exit strategy should almost break even with random entries. Then just focus on the process of trading and not the outcome. If you have know what is going to happen next to make money, you will fail as a trader.

 

OP,

Lemmie guess…

You take profit early because your “perceived” danger is – losing what you got

or

You allow a loser to run because you shut down (emotionally) not wanting to take small / reasonable loss – and sit there till it no longer can be ignored – and then of course its too damn late….. iow – you basically sit staring at the screen unable to push the exit button until the pain is unbearable and your capital is wasted away…

or (let’s not forget the oldie but goodie)

You enter; price pops against you and catches you off guard… then comes back enticingly close to your entry – only to then dash off against you – all the while you sit and watch like a deer in the headlights

And I’m sure there are a few other emotions I could espouse – such as the sweaty palms, labored breathing, heart palpitation just before/ as you enter a position...

So I wonder just how the hell I know this – well welcome to the club



Now if I were to also tell you – several folks here have offered up some good ole text book solutions…

Yes you could reduce your size and trade it till the cows come home… but once you increase it – rest assured your emotions will pop back up and start yellin – all over again…

Yes you could develop a mechanical system – but when the inevitable draw down comes – there’s your emotions yellin – change/ modify/ monkey with it because it ain’t working (and maybe you should because the market has changed – but then again maybe you shouldn’t because it’s just a drawdown) but would/ will you know the difference…. I doubt it

Hell you can even write rules till your blue in the face…. but will you follow them when it counts – No (I know this one all too well)

Hell I’m even on the record for slapping the shit out of myself because I did not do what I should (follow my rules) – logically I knew what to do – but I’ll be damned if I could do it…. Ah the good ole days – my ass




Yes emotions are a bitch – and they will continue to be so even as you climb the trading food chain – make no mistake….. (stuff never goes away – it only gets magnified)

So imo it is infinitely better to fix it once and for all – then it goes away forever - and frees you up to trade with maximum efficiency and to your full potential



You are undoubtedly dealing with one of the biggies – and it will take commitment and work on your part to resolve
(I’ve received more than a few PMs asking for suggestions on how to control emotions – unfortunately I don’t have any)

I could tell you what worked for me – but more likely than not it wouldn’t be worth a damn to you. We are different people – and we each must learn to come to terms with our self, and trade – in our own unique way.

(This is what the gurus, mentor, shills never say as they would have us believe only they hold the secrets to the trading universe – my ass)



Here is a thought I would share though

Don’t ignore your emotions (aka the voices screaming at you from within your head) instead identify them, completely lay them bare, learn to accept/ embrace / even love them… Ultimately you’ll want to make them work for you

In other words;

Discover the origins of your voices/ emotions by identifying the conflict(s) causing them

Then work to resolve these conflict(s)… (each and every one – because the one you ignore will bite you in the ass at some point I can promise)

Now please know some of the conflict(s) you have may not be completely resolvable - but you can come to accept them and put them to rest…. (in my case on a couple – too much time had past – my only solution was to write letters and file them – and yes I still have those letters on file to this day)


So the first goal is to quiet down your voices/ emotions and remove any and all negative power they currently hold over you

The second goal is to befriend your voices/ emotions and turn them around to make them work for you – creating a positive force/ synergy within you…

It makes for a very powerful trader...



Doing this (taking on this journey) is a real bitch, a royal PITA, a hell of a lot of work – and it will change the person you currently are…

But it is doable – I am proof, and because I’ve done it – I am impervious (so much so that I must always take steps to ensure I remain humble – which btw some here mistake for insecurity – makes me lol when they do that)


Ultimately you’ll find nothing (especially the mkt) can hurt or help you (the perceived danger or whatever is, and was always, only in your head – as it was in mine at one time)….




Remember these absolute truths…

We create our own reality – always

We trade exactly who we are inside – and we have absolutely no choice in the matter

We must always be – detached, objective, and observant (think unbiased, unemotional, and watchful) when we trade – simply responding to what we see without hesitation

And (this is important)

You can read/ listen to what I, or anyone else for that matter – says, posts, teaches, or publishes…. But until you do the work to make it your own – it ain’t… and consequently it will be absolutely useless to you – until you do


Rest assured it is within you – to create a new you – should you decide to make it so

Successful Journey Sir

Just one dumb (and obviously wordy) redneck's perspective – nothing more


RN

 

Amen.

So what it comes down to is, you need a system (ideally, two or more uncorrelated systems) that you trust enough to follow the rules. Then you just follow the recipe. Your emotions will still be there, but they will get behind you and follow you, instead of leading you.

 

Our emotions are like the elephant in the big tent. An elephant can be tethered with a small chain and stake barely driven into the ground. It does not really hold him but he has been conditioned to think it is true. He can also be directed by a small man on his back. Again through conditioning.

In the same way, a small amount of energy from our rational mind can keep our emotions in check and working for us in a positive way. But...if things break down, look out...

 

Automate and as Ron Popeil says ... "Set it and forget it"

 

I've been fighting the same problem for months now, with very few exceptions.

But today I had my best trade in 10 months. Made $1195 on a single 500-share trade, letting a winner run nearly the whole way.

How did this happen?

5 seconds after I put on the trade and put in my stop, we had a complete power outage that took out both my internet connections and shut down my system once the UPS timed out.

I had a lot of emotions all right, but none of them related to micromanaging a trade.

An hour later the power was restored and I logged in to find $1222 showing in my unrealized P&L.

 

After a few years, you wont have much emotion left in you. You will eventually realize that trading isnt the weekend warrior, millionaire by next friday endeavour like so many do. Not saying thats what you think about trading, but I think it's fair to say that we ALL got into this business with some preconceived notion of one form or another. After a while, you buckle down and do what it takes, or you join the long list of losers.

As Mark Douglas says, and I fully agree, is that trading is 80 to 90% mental. If you have problems with your emotions, read his books.....more than once. Money is simply the product..the reward of a good trade....of being smarter than the other guy. Learn from your trades, especially the losers, and learn what you can do differently.

Tell me more about your trading, because I'm curious what markets you trade, what time frames, what set ups do you take, and any indicators used..

thanks.

Kon

 

I didn't know you also have this mental illness.

I hear voices in my head, too, but those voices are not loud, not screaming voices, kind of like at conversation-level. The voices occurred about 3 to 5 times a day, but recently I hear those voices more frequently. It has got me worried more, my doctor gave me a kind of drug, but the side effects are worse than the drug I took previously, I experienced more nausea and dizziness and sleepiness......

 

I think RedNeck Trader's post was extremely good !

 

Yeah I those voices too. I just assumed it was Redneck, Bighog and Jack Hershey talking to me...