There are many ways of suppressing emotions when trading. You might think this is the way, however, it might only get you in trouble further down the line. Your best chance of success is learning to navigate the emotions that come with this fast-paced life.
Emotions as a part of efficient trading
Some traders will have trouble using emotions to their advantage while trading, while others do it masterfully. Rage, fear, and greed drive them to put forth extra effort to succeed. This method allows them to keep up their productivity.
In most situations, traders cannot generate a profit until they have achieved their peak emotional state. It’s similar to a boxer who attempts to build himself up emotionally before stepping into the ring. If you want to play in the big leagues with forces such as Saxo, you need to master your emotions.
Experienced traders commonly employ this approach. This technique assumes that you’re aware of when different emotions appear and how you react to them, which leads to a return to psychological equilibrium.
People are constantly experiencing various feelings, which is true. It’s vital to detect a sense before it becomes an issue and fully controls one’s thoughts.
Inability to recognize emotions in time means that, most likely, you also identify your mental state too late. It might take some time for you to return to a state of emotional balance after being upset. The healing period will be determined by the intensity of feelings you experienced.
Complete suppression of emotions
Traders learn about this method from many books on trading psychology at the start of their careers. Their writers advocate ‘trading like a machine.’ It’s entirely reliant on a trader’s personality and personal qualities. This technique may work for some people but not for others.
It is hard to believe that emotions are always beneficial for a trader and that a free trader who controls his feelings loses his edge in trading. Some traders use this technique solely when trading and achieve outstanding results. To see whether this technique is right for you, you must be entirely honest with yourself.
Before you know what emotion control method to utilize in trading, you must first study and understand yourself. When something goes wrong, try to figure out what emotions you’re feeling as a result. Take notes on everything you learn. Pay particular attention to situations that elicit them. In your emotional responses, look for behavioral patterns. It would help if you recorded all of your observations in a notebook.
Unsolved psychological factors
It’s crucial. Trading is more than just studying markets; it’s the method to understand oneself better. Any psychological frailties you battled in the past and those you didn’t sense because no circumstances could trigger them will come to light during trading.
Furthermore, these difficulties will continue to trouble you and impede your progress in trading until you address them and overcome them. There’s a scenario that happens quite frequently with traders who have made consistent profits over an extended period, in which they return every cent to the market. We’re confident that many of you have had this experience before.
The most intense sentiments may strike traders unexpectedly before a trade is executed (entry or exit). In such circumstances, these are probably the most anxious moments, and psychological techniques are required to be effective.
Emotions have a significant influence on traders’ actions. Emotions will drive a trader to act in harmful ways, especially when they believe there’s a shortcut to success.
As children, we learn to identify our feelings and attempt to manage them. We acquire knowledge from our parents, instructors, peers, and cult icons through observation and comparison.
The majority of people who try trading have a lack of control over their behaviours due to their emotions, which generally has adverse effects. It is no surprise that successful trading entails strong mental discipline.