Emotions make us human… but they’re also the cause of so many new traders’ defeats.
The market is cold and calculated. It doesn’t care about your feelings. It’ll prey on those feelings.
Even I occasionally feel the emotions tugging at me, begging me to enter or exit a trade…
Despite my research, analysis, and trading strategy.
But over the years, I’ve learned some tactics to ignore that voice in your head, stay on track, and stop emotions from destroying your profits…
So today, I want to share with you a few of them.
Emotions aren’t inherently bad in trading or investing. They can tell you vital pieces of information — but trading on them is what leads to ruin.
For example, if you start to care only about scoring big wins, that could indicate greed is getting the best of you. Recognizing that helps you dial down the greed before it causes you to crash and burn.
Or, if you’re feeling nervous about a trade, it might indicate you’re not sticking to your strategy (see tip #4) or your position is too large for you to bear.
Speaking of...
Classic advice, but it bears repeating because it’s tempting to ignore it.
Traders (especially those with small accounts) might put too much money into a position because they want faster growth.
Yet it comes back to bite them. They get nervous. They can’t stomach ups and downs. Being worried itself is draining, which ultimately makes it harder to keep your emotions at bay.
Trading is about patience. Patience keeps your emotions in check, and it stops you from dumping your life savings into the market.
So only trade with what you’re willing to lose.
Nearly every trader knows the value of (and uses) stops. If you’re using them (and I hope you are), it’s a good idea to step back and be mindful that you have those stops.
Yeah, losses aren’t fun, but they happen. If a position goes south, remember that your stop-loss limits those losses.
At the same time, should the trade go well, you’ll take your profits and be on your merry way.
Ultimately, if you zoom out, managing your emotions comes down to having a plan.
Think about it: you basically “outsource” your emotional management to this plan.
With a plan in place, trading is simply a matter of “does this trade meet my plan’s criteria?” No worrying about market fluctuations or anything like that.
Your plan doesn’t have to be long or complicated, either.
I mean, my strategy — Statistical Disruptive Flow — uses just 3 criteria to spot potential moves.
And it’s brought great gains like 240% in 11 days…
400% in 2 days…
And even up to 900+% overnight.
If you want to learn how it works...
Click here to watch a free training video about Statistical Disruptive Flow.
