emotions make traders deviate from their trading plans

This is a good post, by my opinion emotion controlling is hardest to master and influence other aspects..will look for similar threads
 
agreed .........

I always say to people that :-

"A Trader must be smart enough to build a good system....and then dumb enough to follow it"


N
 
NVP said:
agreed .........

I always say to people that :-

"A Trader must be smart enough to build a good system....and then dumb enough to follow it"


N
Click to expand...

Dumb asses make pips because they can follow systems , and can't think for themselves.Intelligent people using their brains are prone to emotional responses , second guessing their systems and suffer from discipline and other issues.Their brains won't let them win.

Their brains support making excess cortisol and and stress , as a result their mindset suffers and is unable to function appropriately under stress.Stress gives depressed trading moods.

A system is worth nothing without appropriate trading mindset.

How The Brain Controls Emotions

http://deepblue.lib.umich.edu/bitstream/2027.42/63807/1/ksudheim_1.pdf

Traders must train their minds to be emotion free.

http://www.trade2win.com/boards/trading-psychology/164170-discipline-training.html#post2044302
 
If you do not have a system to follow , decisions are based on ego , gut feelings and personality traits .This is when trading decisions become based on you rather than the market price action , it leads to disaster.
 
Traders change when they join crowds and follow trends or place trades at support or resistance. They become more credulous and impulsive, anxiously search for a trend or set up, and react to emotions instead of using their intellect.It is their sixth sense which put them in the trade , it is based on emotions ,mindset, knowledge ,skill and their past experience .When the markets fails to follow his trades .emotions kick and the game plan goes out of the window .An individual who becomes involved in a group becomes less capable of thinking for himself.

A good post explaining how traders become overwhelmed by emotions.A normal human instinctive trait is to protect one's account and win at any price ,even if t means throwing the game plan out of the window.After a string of losses traders are under control of their emotions.

An interesting article here

http://www.trade2win.com/boards/trading-psychology/17676-trading-elements-emotions-part-2-a.html
 
Test your emotions .Find out what happens to you , when you get angry , when you get sad and weepy , feel resentment and like to give revenge.Get somebody to seriously arouse these emotions whilst you are trading , and see the result , whilst acting normally trading.Get somebody to kick balls and see how you react , the market does it to you all day.

Watch Firefighter Stressed Out Video | Break.com
 
Never get angry when trading .It destroys your account.

Dealing with anger


The Dalai Lama points out the connection between suffering and afflictive emotions, the "enemy within". The real enemy is always within, not without. As long as it remains there, lasting happiness cannot be achieved.

Once you have made up your mind to tackle this "enemy within", to make it count, you realized the true aspiration to seek freedom from suffering.

This is called "renunciation" in Buddhist terms.

 
Traders become angry when the market behaves irrationally , or they have losses or difficult trading conditions.

Imagine the market giving a trader a hard day , destroying his account by 2 % with several losing trades , or a trader going through a drawdown.He becomes frustrated ,annoyed and very angry , he wants revenge for the losses the market gave .He wants a profit.



This trader flips out. In bear market madness times like this people are getting seriously STRESSED. For more go to



Stock Futures Trader losses it all and flips out - YouTube
 
Really dear must be control your emotion while trading in forex market.
emotion can make more mistake in trading which can lead to the big loss. for this reason traders have need to practice more for control emotion during trade.:clap:
 
You must log in or register to reply here.

Similar threads

F
subconcious emotional trade executions
2
Replies
22
Views
11K
WalletInvestor
WalletInvestor
1
9 inches makes successful traders
Replies
6
Views
3K
Arnav Deshmukh
A
Joe Ross
A time and place for emotions
Replies
6
Views
2K
nunrgguy
nunrgguy
R
  • Article
Psychology Managing Emotions While Trading
2
Replies
21
Views
13K
foroom lluzers
F
glyder
Emotional Trading?
Replies
6
Views
3K
foroom lluzers
F
Top