8 Ways to Stop Emotional Trading
If you haven’t already, you need to stop emotional trading. Bringing your emotions into trading is literally the worst thing you can do. It will accomplish nothing but lost trades, lost money, and wasted time. Today we are going to go over some crucial tips on how to stop emotional trading. Remember, trading is about being rational and logical, so your emotions need to be kept in check.
One of the best things that you can do to stop emotional trading is to get a good trading education. The fact of the matter is that the less experience you have and the less knowledge you have about Forex and other types of trading, the more emotional the process will be.
Of course, you have to rely on something to make trades, and if you are lacking knowledge and skill, then the next best thing for you to rely on is your emotion and gut feeling. However, this is a big mistake. The more you know and the more confident you are in your skills, the less likely you are to rely on your emotions for trading.
Develop & Stick to a Plan
Related to the first point, if you want to stop emotional trading, the next thing that you need to do is to make a trading plan. You need to have a solid trading strategy in your arsenal, if not several of them. If you have a plan or strategy that is time tested and proven to work, one that you feel confident in, then using that strategy to trade will become second nature.
The more you develop, refine, and practice a certain strategy, the less emotional your trading habits will be. Simply put, if you are confident that your particular strategy works 95% of the time, then you really don’t have to be anxious about suffering losses. Sure, it still might happen, but the better and more refined your strategy is, the less you have to worry about it.
Place Quality Trades, Not Quantity
In order to stop emotional trading in its tracks, what you need to start doing is placing quality trades instead of focusing on quantity. If you are educated, and you have a plan, then you have no reason not to place quality trades.
If you place high quality trades, ones that are researched and well thought out, then you can be confident in the fact that they will likely go your way. However, if you don’t put much effort into making the right trades, and you just start placing a whole lot, regardless of quality, things will go south fast.
This will force you to keep track of way too much at once, which is emotional in itself. Moreover, placing large quantities of bad trades is bound to end badly, which will just make you all that much more emotional.
Leave Your Ego Outside
Yet another important thing to keep in mind in order to stop emotional trading is to leave your ego where it belongs, far away from trading. Your ego has absolutely no place in any sort of trading, whether Forex, stocks, or otherwise.
If you end winning a bunch of trades, it’s going to overinflate your ego to the point where you think that you are invincible. You’ll start placing bad trades, and you will end up losing.
On the other hand, if you lose a bunch of trades and you let your ego take a big hit, you will end up being way too cautious and missing good trading opportunities. Your trading procedure needs to be cold, dry, and completely heartless. Before you start trading, park your ego at the door.
Don’t Trade What You Can’t Afford to Lose
Something that leads to over emotional trading is when people trade with money that they cannot afford to lose. Of course, if you lose your mortgage payment on a bad Forex trade, you’re going to be emotional. Then, you’ll probably try to place more trades to make your money back, because you really need it, but you may just end up losing more.
If you trade with money that you cannot afford to lose, it automatically emotionally charges the situation. It creates way too much pressure and stress to succeed. Therefore, only trade with money that you can afford to lose, and that means not gambling with your next rent payment.
Get Used to The Idea of Risk
If you want to stop emotional trading and leave your feelings out of it, something you need to do is to get used to the idea of risk, as well as the idea of losing money. Folks, even with years of practice and a super refined strategy, you will still lose on occasion.
This is the nature of the market, whether crypto, stocks, Forex, or otherwise. Risk and loss are inherent factors in market trading, so you better get used to them. If you can’t wrap your head around the idea that trades will sometimes go south, then you’re going to be way too emotional to be objective and reasonable.
Take Good Care of Yourself
Something that many people don’t consider when it comes to how to stop emotional trading is their own emotional mindset, as well as their physical condition. There are tons of things that can cause you to become overly emotional, and yes, this directly affects your trading.
If you don’t eat right, you don’t sleep right and are always tired, you have great amounts of stress in your life, or anything else that can affect your physical and/or mental health, they will lead to emotional trading.
Therefore, you need to make sure to take good care of yourself. It’s all about being in a healthy state of mind and having a healthy body, anything that will reduce your penchant to be emotional while trading.
How to Stop Emotional Trading – Final Thoughts
Of course, these are not the only ways to stop emotional trading, but they are certainly the best. Now, if you really want to become a professional and profitable trader, particularly in the Forex market, we would recommend checking out the Income Mentor Box Day Trading Academy.
CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS!
Leave a Reply