[Psychology] – Control emotions while trading


Trading doesn’t forgive mistakes. But nobody forbids you to eliminate them. Losses can be painful and may lead to frustration, which constitutes a large dose of stress. It is necessary to find the balance and a way to shake off the stress. Do you have such? Control  emotions – easy to say but hard to eliminate them.

I do not want to make this introduction resulted in your negative reaction: „So why on Earth you want to deal with this trading, since it’s so blee and destroying!”. Trading is a great profession, or as who prefers the way for living. In the early stages of learning trading, as well as its further stages (when you can boldly say that you live from profits made on the stock-market) all above aspects appear: mistakes, losses, frustration and stress. Of course, with different frequencies 🙂 Below you will find 5 ways, which I use, to keep the balance between trading, and normal life. How do I relax and go back to trading after particularly unsuccessful transactions or heavy losses. What makes that despite of appearing failures I’m still stuck in this business?

Control emotions in trading – your way to do that

Advice # 1 – Go for a walk, i.e. break from trading in the micro edition

After a large one-time loss during the session – I get up from the computer and I go for a break. The reason is simple – usually after a greater loss, you want fast recovery. It seems to me a natural behavior that you want to quickly forget about the previous defeat. Otherwise when you are not able to control emotions – you can easily move from one loss to another.

However, desire for fast recovery the loss, most often leads to opening too big positions, unconsidered; such which normally you wouldn’t open. And why do you need more losses? Always remember that after unsuccessful transaction or session – a new day will come. There will be another chances and possibilities on the market. You can’t afford that one-time prank affects in a significant degree your account and the more distant future on the market.

In normal job – the employee has the right for a break, rest, to eat something, to relax, at least for a moment, let your eyes to rest from the monitor. In trading is no different. The break is also needed for own health, but also to gain distance towards what happened a moment ago. In my case, when I carry a heavy loss out or I have a few / several smaller in a row – I try to walk away, to do something else. The purpose is to return to the computer with a clear mind.

An interesting thing is that after carrying the loss out, we have in mind the recent memory of this position. We forget about hundreds or thousands of previously profitable transactions. Let us learn to change it.

Advice # 2 – You must have hobby to relax

I have one. When I feel burning down, because of too much stress –> I start to cook a lot. Remember the stress often leads to frustration. And there is nothing worse than trading when you are filled with bad emotions and you feel the pressure of need to revenge on the market.

Carrying out your hobby or other pleasure – always inspires very positively. As it could be differently since you do what you like? Of course, you can say: but the trading is what I like to do. I agree! But trading has other purposes. Hobby is a pleasure, not-requiring to achieve financial defined objective. You do it when you want and you’re in the mood.

Personally, after cooking I’m always filled with a positive energy – particularly if what I made is edible and tastes hehe 🙂 When cooking I feel like I do control emotions. In trading should be the same!

Advice # 3 – Throw away emotions

Aaaaaaaaaaaaa:) You can scream, but whether this way you will shake off the stress? I think that sport is the best way. It is a perfect way to get tired, to relax and to throw away anger, which is somewhere inside us.

I noticed in my case that worse periods often came up in the moment when there is certain monotony in life: family, house, trading, family, house, trading, etc., when I’m not doing anything for myself and my health. Zero sport. However, when I go back to football, for a run, I will ride a bicycle or go practice – at once I have more power and willingness to work. I throw away emotions during sports – and it is quite important. I replace them with positive one, and it rewards. If not results, at least in a better mood and health.

Advice # 4 – Remind successful transactions on the stock market

I record my sessions not only to analyze and improve my trading. I also do it to remind myself that in a period of worse results, I had much profitable. Self-confidence in trading can change extremely – from great complacency about own infallibility to total fall in self-confidence. Just decent level of lack of emotional hesitations comes with time and with increase of confidence as for effectiveness of used strategies. However, the man is only a man, and it isn’t possible to stifle emotion in 100%.

Some may just need to visualize their best transactions – to close eyes and remind how such transactions proceeded and your emotional state then. Do you feel like control emotions when you have a lots of profitable trades in a row? I do!

Advice # 5 – Small shopping

Whether only women like shopping? No 🙂 Guys must also sometimes reward efforts of work. Trading gives you money, with which it is necessary to be pleased. I noticed that I spend more in period when I earn less on the stock-market. It’s such a form of compensation. Usually has positive effect and trading on the appropriate level quickly returns.

Another way is to search on what we will decide to allocate next profits. Some interesting trip to a cool place or pleasure of which for ages we dreamt or your second-half.

Trading must be a pleasure for you

Control emotionsIn every work, and I think that you will agree with me – we work with pleasure when there is an adequate atmosphere, but also your attitude to work is positive. When you have an enthusiasm, much motivation and you derive joy from what you do –> the effectiveness of your work is definitely bigger. If you are not able to control emotions – think about it. Find the way to achieve better balance in your life and trading.

It is great to translate that what I wrote above and with exactly that attitude to start every trading day!

What is your way to cope with the stress? Share your ideas with me in the comment below.


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