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Emotion in Forex trading
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Mohammadi

Member Since Aug 11, 2017  350 posts Mohammadi Jun 13 at 10:19
i think without trading emotions and maintain analysis always when trading is a real part of real trading discipline that always supportive to avoid unfortunate risk and losses. but we cant maintain this attitude during trading most of the time. as a result 90% are loser from here above all the beginners level.

Greenwood

Member Since Jun 13, 2018  10 posts Greenwood Jun 13 at 14:45
Are you saying that emotions are good or bad?

ComebackKing

Member Since Apr 09, 2018  35 posts ComebackKing Jun 14 at 05:59
Trading brings uncertainty because we do not know the outcomes when we enter a particular market. Most people are wired in such a way that uncertainty is naturally uncomfortable. Throw in a some losses, a negative P&L, ideas that don't work out, a blown account, etc and you have some serious fear and anxiety to also deal with. Everyone will experience this in one form or another. Then there is greed and excitement as well as hope. You have a profitable trade and there are signals that you should book your profits, perhaps it's written in your trading plan. But you think you can squeeze a bit more out of the trade and greed takes over. Or you have a small profit and you get excited and close the trade and book your small profit without letting the trade play out. Everyone will surely experience these things also.

I believe many people work on ways to block this emotion. Emotion cannot be blocked. The human body and mind is wired in a certain way and while the mind can be somewhat rewired (neuroplasticity) it's a long journey taken over thousands of hours. In order to successfully deal with this wide range of destructive emotions one must learn to accept them and be comfortable with the discomfort that these emotions will bring. You really must embrace the rush of emotions and learn that they are transitory and generally of no benefit in trading. These emotions come from us when we were in caves, being both the hunter and the hunted. There was real danger in being a human and this is how our brains and minds were developed. These triggers occur now in situations like trading, the feelings are very intense but our lives are not in danger. Only by learning to welcome and accept these emotions can we hope to stop them from altering our decision making. And until that happens, trading results will range from forever negative to under performing. My .02...

Adribaasmet

Member Since Aug 27, 2017  376 posts Adribaasmet Jun 14 at 06:02
Greenwood posted:
Are you saying that emotions are good or bad?


I think, good emotions are supportive but bad emotions are not.

ComebackKing

Member Since Apr 09, 2018  35 posts ComebackKing Jun 14 at 14:48
Adribaasmet posted:
Greenwood posted:
Are you saying that emotions are good or bad?


I think, good emotions are supportive but bad emotions are not.


You are going to experience both good and bad emotions and you are going to have to deal with them in order to be successful.

lucywarren

Member Since May 30, 2018  9 posts lucywarren Jun 15 at 10:06
ComebackKing posted:
Trading brings uncertainty because we do not know the outcomes when we enter a particular market. Most people are wired in such a way that uncertainty is naturally uncomfortable. Throw in a some losses, a negative P&L, ideas that don't work out, a blown account, etc and you have some serious fear and anxiety to also deal with. Everyone will experience this in one form or another. Then there is greed and excitement as well as hope. You have a profitable trade and there are signals that you should book your profits, perhaps it's written in your trading plan. But you think you can squeeze a bit more out of the trade and greed takes over. Or you have a small profit and you get excited and close the trade and book your small profit without letting the trade play out. Everyone will surely experience these things also.

I believe many people work on ways to block this emotion. Emotion cannot be blocked. The human body and mind is wired in a certain way and while the mind can be somewhat rewired (neuroplasticity) it's a long journey taken over thousands of hours. In order to successfully deal with this wide range of destructive emotions one must learn to accept them and be comfortable with the discomfort that these emotions will bring. You really must embrace the rush of emotions and learn that they are transitory and generally of no benefit in trading. These emotions come from us when we were in caves, being both the hunter and the hunted. There was real danger in being a human and this is how our brains and minds were developed. These triggers occur now in situations like trading, the feelings are very intense but our lives are not in danger. Only by learning to welcome and accept these emotions can we hope to stop them from altering our decision making. And until that happens, trading results will range from forever negative to under performing. My .02...
You have put this very well. Emotions are an inherent part of us. We should learn to balance them. And while it may not be feasible to escape from them, we should not let them override our better judgement and logic, especially in forex trading otherwise like you said our trading performance will suffer.

snapdragon1970

Member Since Sep 12, 2015  1911 posts kieran (snapdragon1970) Jun 16 at 21:47
Most of this emotion comes down to our personality and how we are able to manage it, uncertainty has more effect on certain personality types than others, those cavemen who stayed in the cave and those who chased after the lion, the risk takers,if you don't like taking risk you are going to have a hard time Trading Forex, either you will freeze when the opportunity arises or leave it to late to take the trade, understanding the parameters and practicing it over and over, reduce trading size ,over sized trades does put more pressure on most people, but if overconfidence is playing a part how can we be wrong when everything is telling you to commit, back to balancing emotions, after a run of wins we have that high,its time to take a break, same with losses, its quite common to that our brain is telling us when it sees certain patterns its time to close that trade but we ignore it.A lot of screen time does seem to help with pattern recognize ,Setting all the parameters and letting the trade play out ,go off and do something else, switch screens ,you being involved isn't going to make the trade go better,if you willing to accept the risk at the start what changes that your not willing to except it later.

"Mistakes are the portals of discovery",James Joyce.
Enictor

Member Since Dec 25, 2017  4 posts Aso Dolf (Enictor) Jun 17 at 12:11
I have good trading style and strategy base on Action Price, but i keep fighting with this emotional of a thing after trading successful in two weeks. I tend to be blaming my self that 'Were you drunk, when you get in for that trade?' of course am not... but it was against my rule and style of trading anyway. Any possible help from you guys?

snapdragon1970

Member Since Sep 12, 2015  1911 posts kieran (snapdragon1970) Jun 17 at 12:49
Forgot to mention there is a personality test The Big 5 you can take online might help.

"Mistakes are the portals of discovery",James Joyce.
Adribaasmet

Member Since Aug 27, 2017  376 posts Adribaasmet Jun 17 at 14:21
ComebackKing posted:
Adribaasmet posted:
Greenwood posted:
Are you saying that emotions are good or bad?


I think, good emotions are supportive but bad emotions are not.


You are going to experience both good and bad emotions and you are going to have to deal with them in order to be successful.


Yes, you re right; but initially it’s not easy to handle bad emotions as a new trader. it takes such a long time to learn the way of controlling the bad emotions.

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