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Trading Educators Blog

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Nov
14

Be Objective

When your money is on the line, you can't help but feel a little uneasy. What if you lose? It's hard not to put some of your ego on the line with your money, and when you lose, feel hurt. Winning traders, though, keep cool. They don't ride a roller coaster ride of emotions, feeling euphoric after a win and beaten after a loss. They take losses in stride. However, it's hard to stay objective and co...
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233 Hits
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Aug
29

Emotions

​ Winning traders are extremely disciplined. They wisely study the markets, devise a trading plan, and follow it. They control their impulse to abandon their plans prematurely, and they don't allow emotions, such as fear and greed, to influence their trading decisions. In the trading profession, emotions often get a bad rap, however. There are critical moments of investing when it's vital to contr...
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Recent Comments
Guest — Gary Dear
Joe, good morning, and thanks very much for your article entitled "Emotions". ... Gary Dear
Friday, 30 August 2019 08:13
Denise Ross
Gary - Joe asked me to post a reply as he is unable to at this time: "Hi Gary, It’s been a while since we heard from you. It’s r... Read More
Sunday, 01 September 2019 18:47
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Jul
12

Controlling Emotions

​ Winning traders cannot afford to be influenced by their emotions. The nature of trading demands an objective, logical approach. If you experience extreme excitement after a win and extreme disappointment after a loss, you will be living on an emotional roller coaster: up and down, up and down. Many beginning traders have head knowledge of what it means to control their emotions. They can imagine...
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446 Hits
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Feb
14

Disappointment and Regret

Every trader makes bad trades and faces regret, it is inevitable. And we all have the human tendency to be overtaken by emotions. When we screw up we have a feeling of loss, and even a sense of denial. We wish we could undo the mistake. Going through such a thought process is understandable. It is what you do about it that matters. Virtually from the time we were born we learn to use our emotions ...
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555 Hits
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Jan
31

Emotions

​ Letting your emotions influence your trading decisions is virtually a guarantee that you will lose as a trader. If you are going to survive as a trader you have to bring your emotions under control. If you find that your emotions are swinging up and down as you trade, you have to confront the resulting feelings and deal with them. No one can do this but you. One way to keep emotions under contro...
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510 Hits
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Sep
08

Emotional Extremes

Many beginning traders undergo emotional extremes, feeling sheer ecstasy after a win, but crushing disappointment after a loss. However, as a mature trader, you grow to realize the folly of allowing the natural ups and downs of trading to impact your emotions. Although as a winning professional trader you may stay calm and relaxed even after a series of losses, remaining rational and composed can ...
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1096 Hits
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Feb
18

Emotions in Context

When you put your money on the line, it's hard to avoid getting a little emotional. Beginning traders may be especially prone to experience a roller-coaster ride of emotions, feeling euphoric after a winning streak, yet disappointed after a string of losses. How well do you handle emotions? Winning traders control their emotions. They don't let their emotions control them. But emotions don't happe...
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1388 Hits
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Oct
13

Don't let your emotions influence your decisions in trading

Trading is nothing more than a long, random statistical run. An experienced trader knows that even if he is in a losing streak right now, as long as he sticks to his already approved trading plan, he will come out a winner in the long run. This is why becoming angry is pointless. In fact, it is worse than pointless, because heated emotions often lead to poor decisions in subsequent trades. In such...
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1418 Hits
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Aug
11

Feeling Neutral

Some traders unconsciously ratchet their emotions up a notch each time they avoid a trade when the market is not in their favor. So their emotions build, like steam pressure, to higher and higher levels. You can see the anger growing in them. They feel that by patiently staying out of every trade that they are demonstrating superior trading skills, but they are not being rewarded for it. When we i...
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1955 Hits
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Jun
02

Controlling Emotions

Winning traders cannot afford to be influenced by their emotions. The nature of trading demands an objective, logical approach. If you experience extreme excitement after a win and extreme disappointment after a loss, you will be living on an emotional roller coaster: up and down, up and down. Many beginning traders have head knowledge of what it means to control their emotions. They can imagine a...
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1881 Hits
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Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.