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Emotion in Forex trading

Chachingggg
Jun 27 2018 at 12:40
12 príspevkov
But most people lose money so starting small is best

sarahlawrence
Jul 01 2018 at 06:08
20 príspevkov
Mackiveki posted:
that is right. you need to be a risk taker to some extent to be successful in FX. And need to be comfortable with those risks. That is how you can control emotions. I think that people are either born this way or they are not. If you get too emotions when trading then you should quit as you will never be a top trader
Well said. No pain, no gain. Unless you assume risk you will not make much profits in forex, or anywhere else for that matter. But use a proper risk management plan instead of just blindly taking on any risky trade.

TiffanyK (TiffanyK)
Jul 19 2018 at 15:01
427 príspevkov
Emotions are inevitable part in trading ( as well as in other endeavors in life) we are not robots. Trying to suppress your emotions is also a kind of emotion. Just be ready to lose the money you are investing in Forex, so you are not stressed to be broken. Learn and invent your own risk management and follow it if it's effective.

Accept the loss as experience
Gold101
Jul 20 2018 at 11:41
13 príspevkov
Good risk management is how to conquer emotion in trading. If you risk 30 percent your account then anyone is going to freak out but if it is only 2 percent this is easier to think about

ComebackKing
Jul 22 2018 at 05:44
37 príspevkov
Mackiveki posted:
that is right. you need to be a risk taker to some extent to be successful in FX. And need to be comfortable with those risks. [b]That is how you can control emotions. I think that people are either born this way or they are not. [/b]If you get too emotions when trading then you should quit as you will never be a top trader


This statement is completely untrue based on my experience.

It is true that in any type of trading there is no certainty and there will always be risk. But to say that you can 'control' emotion is really misleading. Emotion cannot be controlled but it can be re framed. Perhaps this is what you mean and I'm pointing out a difference in semantics. Dealing with the emotion that is present is key to success in most endeavors with trading being no exception.

The part that I REALLY disagree with is that you are 'either born this way or not'. I am by nature extremely conservative and I am not at all naturally comfortable with risk. This is something that I have explored within myself and worked on. I can positively say that I am 100% comfortable with the trading risks that I take today; it's no issue. There are times when I feel a rush of negative emotions and my fight or flight instinct kicks in. But I have developed the tools to deal with this, and I have developed the habit of applying them. It's not perfect but it works.

Anyone who wants to change a personality trait can absolutely change it. It takes work and practice but it can be done. I pointed out earlier in this thread that meditation is key to dealing with emotions. The type of meditation I was referring to is calm abiding meditation. The type of fear experienced during trading generally comes from focusing on the outcome and not the process, it comes from not staying in the present and instead letting the mind go to the past (usually to recall negative events) and then to the future (to worry about losing money). Calm abiding meditation trains the mind to stay in the present. It's a skill that can be built, albeit very slowly. This combined with a tested and verifiable statistical trading edge will get a person knocking at the door of consistent profitability.

It's still my contention that most traders who are experiencing fear have a good reason to feel this way. Most traders have not developed the skill to trade without constant loss and they do not have a quantifiable and verifiable trading edge. Some have a trading plan but it's a losing plan. Anyone new to trading will need to develop both the trading skills and mental skills and this will take years. Not days, weeks or months but years. If you're not willing to put years into this then you're likely going to be handing your money over to other people. Trade ES futures and you might be handing it over to me :)

audreycolln (audreycolln)
Jul 24 2018 at 11:51
9 príspevkov
ComebackKing posted:
Mackiveki posted:
that is right. you need to be a risk taker to some extent to be successful in FX. And need to be comfortable with those risks. [b]That is how you can control emotions. I think that people are either born this way or they are not. [/b]If you get too emotions when trading then you should quit as you will never be a top trader


This statement is completely untrue based on my experience.

It is true that in any type of trading there is no certainty and there will always be risk. But to say that you can 'control' emotion is really misleading. Emotion cannot be controlled but it can be re framed. Perhaps this is what you mean and I'm pointing out a difference in semantics. Dealing with the emotion that is present is key to success in most endeavors with trading being no exception.

The part that I REALLY disagree with is that you are 'either born this way or not'. I am by nature extremely conservative and I am not at all naturally comfortable with risk. This is something that I have explored within myself and worked on. I can positively say that I am 100% comfortable with the trading risks that I take today; it's no issue. There are times when I feel a rush of negative emotions and my fight or flight instinct kicks in. But I have developed the tools to deal with this, and I have developed the habit of applying them. It's not perfect but it works.

Anyone who wants to change a personality trait can absolutely change it. It takes work and practice but it can be done. I pointed out earlier in this thread that meditation is key to dealing with emotions. The type of meditation I was referring to is calm abiding meditation. The type of fear experienced during trading generally comes from focusing on the outcome and not the process, it comes from not staying in the present and instead letting the mind go to the past (usually to recall negative events) and then to the future (to worry about losing money). Calm abiding meditation trains the mind to stay in the present. It's a skill that can be built, albeit very slowly. This combined with a tested and verifiable statistical trading edge will get a person knocking at the door of consistent profitability.

It's still my contention that most traders who are experiencing fear have a good reason to feel this way. Most traders have not developed the skill to trade without constant loss and they do not have a quantifiable and verifiable trading edge. Some have a trading plan but it's a losing plan. Anyone new to trading will need to develop both the trading skills and mental skills and this will take years. Not days, weeks or months but years. If you're not willing to put years into this then you're likely going to be handing your money over to other people. Trade ES futures and you might be handing it over to me :)
Very nicely put comebackking. It is not entirely possible to control your emotions. These are natural feelings that come from within. We can however choose to not act on certain emotions. Of course that would require great mental restraint and practice but it is possible. Meditation is known to help a lot in this respect. It really calms your mind and helps you think in the right direction. To be successful trader it is essential to not just gather the correct skill set and knowledge but also to deal wih your emotions in a prudent manner.

Danish54
Aug 14 2018 at 10:46
5 príspevkov
TiffanyK posted:
Emotions are inevitable part in trading ( as well as in other endeavors in life) we are not robots. Trying to suppress your emotions is also a kind of emotion. Just be ready to lose the money you are investing in Forex, so you are not stressed to be broken. Learn and invent your own risk management and follow it if it's effective.

Perfect! we are human beings not robot so it is impossible to remove the emotions completely from our life as well as from trading. its better to make a good strategy and follow that strictly with proper risk management.

balticrain
Aug 16 2018 at 10:02
11 príspevkov
By strictly following a strategy we can remove the affect of emotions even if we cannot remove the emotions themselves. This way the emotions do not affect the trading

victoriajensen
Aug 16 2018 at 12:39
1117 príspevkov
Emotion shouldn't affect trading. Whether you're sad or angry or even happy, that shouldn't have influence over your decisions. Obviously that is easier said than done, but the only way to achieve that is to practice.

rw051974 (rw051974)
Aug 16 2018 at 14:12
1 príspevkov
If a trading system where sufficient many people would make a lot of money. Mental management is everything

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