CONQUER YOUR EMOTIONSHello everyone
Today I want to talk about a very important topic in trading – emotions.
Emotions accompany us in trading from beginning to end: when we open a position, while we hold and when we close.
Our psychological state is constantly being tested.
All this leads to constant mistakes and loss of money.
But how to avoid all this?
The main reason
Think about what is the main reason for your emotional swings?
It may seem strange, but the main reason for emotional mistakes is the continuous observation of the price chart.
You constantly look at the chart, watch every tick, the price changes its direction every second, you overwork and begin to doubt the correctness of your forecast.
At the same time, it is worth recalling that people like to watch: movies, magazines, books.
We are constantly looking at something and looking for something new.
Forex is interesting because there is money there.
When a position is open, traders are happy to follow every price movement.
And when the position is not open, what do you do?
That's right, you don't look, because looking at the market is just so boring.
If the position is open, it is difficult to resist and not look at the chart.
What is the reason for the shaky psychological state of the trader?
Your drug
Constant monitoring of the price leads to addiction.
You get tired, the exhausting observation of how profit comes and goes, leads to big mistakes.
Continuous emotional roller coasters kill the desire to trade in us and at some point, on a subconscious level, you want to lose everything just to get away from the monitor.
Familiar?
How to overcome emotions?
There are many different ways, today we will look at three that will help you avoid emotional overload.
1. Use a higher timeframe
If you trade on minute charts and experience problems with emotions and fatigue, you should switch to an older timeframe.
If you start trading, for example, on a daily chart, there will be no need to look at the chart every minute, because the price does not move so fast.
The daily or 4-hour schedule does not change so often and it will be enough for you to look at the chart once or twice a day.
Thus, you will remove from the equation the constant monitoring of the schedule, which leads to fatigue.
You will have fewer mistakes, which means more profit.
2. Daily goals
A great way to reduce emotional pressure is to set goals.
The point is that you set yourself a certain profit and loss goal every day, and when you reach one of the indicators, trading for you stops today.
You can set yourself a profit and loss goal, for example, of 50 points.
As soon as you earn or lose 50 points, you go to rest until the next day.
This is a great way, and it will definitely help to avoid over-trading.
But not everyone can force themselves to leave, especially after losing money.
Follow the strategy, otherwise you will be pursued by losses.
3. Lot reduction
For many, this method may seem strange.
After all, everyone thinks only about profit and how to get it quickly.
The market is a dangerous place and there is no need to hurry here.
Reduce the position by 5 times and you will see the difference in your trading.
You will stop making mistakes, you will follow the strategy.
But why?
The problem is that when trading large lots, the trader thinks only about money, forgets about risks and rules. This is how the trader drains the account.
When trading small volumes, your brain will be free from thoughts of quick profit.
YOU will become more reasonable and attentive.
Results
Emotions will not go away and the market will always test you.
Strong emotional swings make you make mistakes and lose money.
Use the methods listed above and control over emotions will come, the results will improve.
May peace come with you!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
