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Emotional Trading

Arindam (gaurdas06)
Aug 31 2011 at 12:21
19 Posts
I really admits your comment.

Andy



AussieTrader posted:
    We all have been there, trust me. Some say that 95% of all who try forex lose 100% of thier money. I believe that.
I have a therory about the stages each forex trader goes through. I would venture to say nearly everyone with any experience in forex would agree with me.
I call this 'The Seven Stages of Tradeing Forex'

You begin by being conservative.
You start out being very carefull with your trades, keeping lots small and stops tight.

Which leads to success.
Your plan is working, and your account is seeing gains.

Which leads to overconfidence.
The plan works every time. look at the gains you are making. You must be a genius. You have found the holy grail..

Which leads to Greed.
If you can make this much with one lot, then why not trade 2 lots, right?

Of course what follows is denial.
The market will come back, right, it always does, we should just double down.

And then comes panic.
No, No, No, not a margin call.........

And then my favorite, dispair.
Its all gone, every last bit.

Some times this path is repeated with a few revenge trades thrown in. Sometimes the hit is big, sometimes it is small. But everyone takes a hit. The thing to do is learn from it and try not to go down the same path.
Pick yourself up and learn from it. You can do it.

good luck.
James_Bond
Aug 31 2011 at 14:50
556 Posts
Yeah, those are some great comments.

That is a vicious, never ending cycle that only a few can break.
Adolf
daily_martingle
Aug 31 2011 at 19:44
239 Posts
how much money is left for u? tell me ur balance and i will give u a free EA which can match your balance and start to recover your loss
Adolf
daily_martingle
Aug 31 2011 at 19:45
239 Posts

hkheredia posted:
    I just wrecked my portfolio tonight and lost the spirit of trading currencies. Any tips on how to recover from this very expensive learning experience? I'm humbled by what the market did to me and I think I overtraded. I was trading the EUR/USD, going long and short multiple times and I think I was trading a trend I could not even read.

how much money is left for u? tell me ur balance and i will give u a free EA which can match your balance and start to recover your loss
SarahStone
Sep 07 2011 at 10:27
13 Posts
Emotional trading is the worst i have. When I open position i try to be strong as steel)))Because if you are nervous it is not good. Of course i am thinking about trading all time while my position is open, but i am thinking about how to make it profitable;)Sometimes it happens)
goodmast3r
Sep 07 2011 at 17:09
6 Posts
Any book on how to manage our emotion?

There are lots of good tips here. But those tips are useless when we have bad emotion. It is when you don't have control of your self.

In forex you can trade 24 hours, that makes it so hard to control our emotion. If you trade stock, the market will close and you will take a break which is good.
Losing thrise on the same condition, currency in a short time is a moron
redbuddha
Nov 11 2011 at 04:47
8 Posts

   hkheredia posted:
   I just wrecked my portfolio tonight and lost the spirit of trading currencies. Any tips on how to recover from this very expensive learning experience? I'm humbled by what the market did to me and I think I overtraded. I was trading the EUR/USD, going long and short multiple times and I think I was trading a trend I could not even read.

It is obvious that you did not have a plan on money management, which led to your failure on this account.

-53.12% -32.08% -17.27% -16.77% -14.23% -13.30% -11.30% -9.67% -8.86% -8.72%<-- TOP 10 losses

38 out of the 60 losing trades you had, you lost more than 2% of your captial.

Need i say more?

The market did nothing to you, you did this to yourself.
7forex
Nov 11 2011 at 18:26
56 Posts

   goodmast3r posted:
   Any book on how to manage our emotion?

There are lots of good tips here. But those tips are useless when we have bad emotion. It is when you don't have control of your self.

In forex you can trade 24 hours, that makes it so hard to control our emotion. If you trade stock, the market will close and you will take a break which is good.

goodmast3r,

Well said. Yes, you can manage your emotion well in a good condition but it's very difficult to control it when you are in a bad condition. The worst thing is that Forex is 24 hours market, it's so tough for a trader walk away from trading when he/she is in bad emotion. That is why Forex is so risky.
I love taking risk with the right returns.
unholy_ghost
Nov 12 2011 at 14:46
10 Posts
here is the solution: have a bottle of good whiskey handy. and no glass! regularly drink a few shots while trading and suddenly you will float above the market. nothing can touch you. this technique is also knows as drunken forex kungfu master.
PipGnostic
TheCyclist
Nov 13 2011 at 01:08
724 Posts
Yeah I tried that unholy ghost, then you wake up broke and with a hangover instead of just broke !!

hkheredia

Sadly this is the road you need to travel to figure it out. Now the question here to ask is what isn't working. See, few years ago I noticed that if you look at the chat rooms, you see the same people there day after day after day, and very often they call against each other. Someone must be wrong. Yet the same people make money. So it can't be the direction of the call that's making the money. And if it's not that, then what is it?

See your forex journey really starts when you try stop predicting the market, then you start thinking about the things that really matter.

I often say to people they should try trading randomly, try make it work, then suddenly everything changes, because you're not under the false impression you actually know what's going to happen. Then things like trade sizes and so on becomes critical. And trade sizes are more critical than direction in fx.

Want to know on average how many times any trade you open go into profit ? 11 times.....take a point, any point on a chart, scroll left and see how many times the price goes through that point....so get beyond the indicators, direction and news and move up a level.
Shawn OConnor (TrendySystem)
Nov 28 2011 at 20:54
38 Posts

   hkheredia posted:
   Is it still possible to slowly recuperate my account to previous levels despite losing half of it's value without injecting more funds? Forex should only involve risk capital and I don't want to risk anything more as of the moment.

I think 'pulling the trigger like a cowboy' was a result of my desperation to recuperate losses. I did relearn my lesson that this is a business with systems in place not a gambling spree in vegas.

K, so I have read a little bit on this thread and I feel for you cause I have done the same thing many a time since I started trading about 7 years ago. Here's the thing...you have to blow up at least a few accounts. I'm not joking about that either. For whatever reason we cannot seem to learn and control ourselves until we have been broken...completely and utterly dejected and disgusted that we got so greedy and until you feel that feeling deep in your gut...that you can't believe you lost that money and chased after a fast recovery, or gain when you knew the slow road was the only way back...that my friend is the only way to learn.

So, this being said, my advice is open up a live account asap when you think you have a decent trading strategy/system. The key is make sure the real money account is very small. Say a $1,000. That way when you lose it all you don't go into depression.

The first year I started forex in 2004 I lost my real money account after 6 months. Then I had a great account going form 2005-2006 where I consistently withdrew profits and recapped my losses. Then I did the same in 2007-2009...but I then proceeded to get very greedy and cocky and blew up a pretty stinkin big account. That made me sit back on the sidelines for over 1 year and just paper trade. I was completely sick to my stomach that I lost that much of my own money, although the intitial capital investment was pretty small, only $2,000 but the account was fluctuating at about 10-14k depending on my withdraws when I blew it up.

Here's the thing...those tough lessons can either make or break you. Your choice. I'm back trading now, but I feel centered again and I wanna make a 10 year run now without blowing an account up...That's my goal ;)
Dictiony
Jul 10 2020 at 00:25
231 Posts
Emotions are the worst enemy of forex traders. Emotional traders can not successful in forex. So if any trader is emotional and you have no patient with it, you can stay away from forex. After training, you can set up your own entry, strtaegy and plan and also can know how to control emotions in Forex trading.
Abhijeet
Jul 10 2020 at 11:12
9 Posts
Emotions are horrible in trading. They can spill over in to normal life and at weekends when not trading. I try to use small Lot size to help with this
jonny99
Jul 10 2020 at 11:27
32 Posts
Well emotions are a part of everyone's life. However one has to learn how to keep these emotions at bay when they trade forex.
Elias (Elias64453)
Jul 13 2020 at 12:26
12 Posts
in order not to fly off the account, you need to calculate the losses in advance, and use a stop loss.
Fernando9
Jul 14 2020 at 08:47
22 Posts
jonny99 posted:
Well emotions are a part of everyone's life. However one has to learn how to keep these emotions at bay when they trade forex.
Yes handling emotions is a vital part of trading forex successfully.
SofieAndreasen
Aug 24 2020 at 21:29
759 Posts
All human is emotional. But trader should not trade with emotion. However, when real money on the stack, trader cannot help but to trade with emotion. Emotional trading only brings disaster. Trader should trade with emotion as little as possible.
UweMoench
Aug 25 2020 at 10:14
751 Posts
Learn what type of mind set is needed to be profitable. Along with a good strategy you also need a trading psychology. You can't just open trades randomly. You have to be calculative and discipline. You should have technical reason behind opening and closing a trade.
CirillaCosta
Aug 25 2020 at 10:24
34 Posts
Emotion is the most dangerous enemy of a trader. if you can not control your emotion in trading you can face a huge loss. Taking decisions emotionally can not give you profit most of the time.
ElliotCooke
Sep 15 2020 at 20:03
341 Posts
Trading with emotion can put you in great danger. You have to control your emotion if you want to make money from this market.
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