mizer, I guess it helps if you are right with your trade. Still learning myself and I have been emotional at times too. Smaller losses is definitely easier to accept and I am teaching myself to minimize losses as well as allow winners to run. I just try and tune things out. A winning trade gives me encouragement and a loser makes me look at my trading journal to find out what went wrong!!! Like any normal person, I feel bad when I lose a lot but, smaller losses I take much more easily. A clear head is important in trading so, if one where to be emotional----it could effect negatively, one's trading decisions. I just try and tune things out and review my mistakes and move on to the next trade.
At the very highest level, there is no escape from the fact that the battle is against oneself. Other factors are present, but are of lesser importance. In other words, at the highest level, the battle is against ones weaknesses in one's own personality traits. Why ? Cause the trades that go against you are to be cut early. The winners are made to run .. no other basic formula works. Regards j
Nice post. The greater one's confidence in his own abilities, the easier it is to sidestep the emotional roller coaster and take advantage of crowd mentality. It's all about centering your fears and expectations upon yourself where it belongs, where you have control -- and NOT on any one particular position within a particular market for a given trade. Fear that you will make the same mistake over and over again; hope that you will overcome that vicious cycle to move forwards. Fearing and hoping that the next tick will be up or down will just put you on the front seat of that roller coaster -- exactly where you don't want to be.
I never get angry as my stops are so tight, so even though if I lose the trade, it wont be the whole world.
Mizer, I think it's pretty impossible not to be emotional when you start out - like for at least the first year. It's just part of it - you're learning, trying to figure out if trading really works for you, etc, no matter how profitable you may be. After a full year or so of consistent profitablity, it's much easier to take a step back and not worry about the pnl, rather, did you make the right trade or not and, if not, what went wrong. The only time i get really pissed off now is when my web connection goes down, system locks up or i'm missed hitting the bid on a losing trade about 4 times in a row etc. Most anyone who's really good and at least semi- balanced individual will not be throwing their mouse after a number of years trading. The exception for me is sometimes when something has gone wrong, i just scream "f*ck" really loud, it let's the stress and negative emotion go away and hopefully i'm back centered and not letting that affect my next trade or how i think of anything still on the books. Good question.
Some thoughts and observations from another field. I am a nurse in an acute hospital setting -when it hits the fan -it can really be "IT". over the years I have watched and participated in many high stress situations. guys puking literally buckets of blood-trying to get iv lines in to keep their volume up till we can intervene with something that might save their lives. cluster codes -what you see on tv -except its not like tv unless you watch reality hospital scenes-cpr- line placement -intubation- mottled bodies-nothing going right-delayed equipment. the list of bizarre situations goes on... My observation is that when everyone can remain calm-cool headed -almost standing outside of the situation but doing what needs to be done-it increases the odds of a good outcome. We only potentially have control of how we are going to react-I do know that I am responsible for how I act and whether or not if it is appropriate to the situation. So How do you get there- maybe watch the ones "who do it right". maybe get away from the ones who do it "wrong" maybe meditation; maybe a coach; maybe squese a hand ball-read some books-take a class reduce your trading size to where it does not affect you and gradually build back up- I don't know what will work for you-you know yourself so examine what has been posted and add/change/adapt on to this list. Then pickout some things that look like they apply to you and try them. and then If at first you don't succeed try - try again -but DO something different.
yes absolutely. but compared to your job trading is trivial - to say the least. you in your job HAVE TO act in every single situation that you are confronted with. in trading if you find yourself in a situation that you're not familiar with you simply can (should/have to) lean back and do nothing until the frenzy goes by. i think this is something that we shouldn't forget - it's just trading after all. there are lots of more important things in life than the nonsense that happens at the exchanges day by day.
I get emotional and pissed off throughout the trading day. Whether it is a big loss or getting out too early, I curse and swear a lot. I decided it is time for a change because my emotions from trading gets carried to my everyday life. I use disciplinary actions everytime I swear. I won't tell you how I do it in here. So far, I find I swear 50% less. By swearing less and being less emotional, I find I am able to setup my trades better. Hope this helps...