Emotions of winning and losing

[Drekk]

Yeah. But we should rather try and stay neutral.Some Losses motivate you to do well whereas some profits make you overconfident. So better stay neutral.

 

[Akwin]

Emotions can have consequences in how traders behave, practice, and compete.

 

[Upgradzz]

Emotions can always ruin one’s trading journey, it is very important for traders to have a right mindset to succeed in trading. Staying calm and focused, no matter earning profit or incurring loss, is the best a trader should do.

 

[TRADEMYSTYLE]

Emotions play a vital role in forex trading. Getting over excited on winning a trade and becoming depressed on losing a trade both can hinder the future trades. So, it’s always preferable to stay calm in both the situations.

 

[jackthefxtrader]

This is the one thing from which a forex trader should stay away. Emotions can ruin your trades. You can control your emotions by doing regular tasks that make you happy internally. I usually sit in the open and read a book.

What regular tasks do you do to make yourself happy internally?

 

[TradeDeck]

This is the one thing from which a forex trader should stay away. Emotions can ruin your trades. You can control your emotions by doing regular tasks that make you happy internally. I usually sit in the open and read a book.

Agreed, whenever I get trapped by emotions, I prefer going on a walk to relax myself.

 

[hatemypips]

Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!

I would add that besides of reducing waiting time it may be also useful to reduce the impact (loss) in absolute terms. It's easier to accept streak of small losses than one large loss even if they are equal

 

[HeavLeighGill]

Never thought about it like this before. You made a good point. I think losses also take a hit on our ego, which is a big deal to some because they feel like a failure over small losses. Winning can have the opposite effect and cause big egos until one loses again and the cycle repeats.