Emotion in Forex trading

Jun 13, 2018 at 10:19
9,436浏览
308 Replies
会员从Apr 09, 2018开始   12帖子
Jun 27, 2018 at 12:40
But most people lose money so starting small is best
会员从May 30, 2018开始   20帖子
Jul 01, 2018 at 06:08
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.
会员从Feb 12, 2016开始   427帖子
Jul 19, 2018 at 15:01
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
会员从Feb 26, 2018开始   13帖子
Jul 20, 2018 at 11:41
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
会员从Apr 09, 2018开始   37帖子
Jul 22, 2018 at 05:44
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 :)
会员从Apr 09, 2018开始   9帖子
Jul 24, 2018 at 11:51
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.
会员从Aug 10, 2018开始   5帖子
Aug 14, 2018 at 10:46
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.
会员从Aug 01, 2018开始   11帖子
Aug 16, 2018 at 10:02
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
会员从Jul 10, 2014开始   1117帖子
Aug 16, 2018 at 12:39
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.
会员从Mar 03, 2015开始   1帖子
Aug 16, 2018 at 14:12
If a trading system where sufficient many people would make a lot of money. Mental management is everything
会员从Aug 17, 2018开始   4帖子
Aug 19, 2018 at 07:23
Banks make loads of money using trading systems. In fact most of all trading is by algos now days.
会员从Jul 10, 2014开始   1117帖子
Aug 20, 2018 at 17:13
There are also plenty of traders using EAs and some of those EAs are capable of producing pretty great results. Still, it's important to train yourself to be patient so you don't touch the EA while it's working.
会员从Aug 27, 2017开始   994帖子
Aug 21, 2018 at 07:23
victoriajensen posted:
There are also plenty of traders using EAs and some of those EAs are capable of producing pretty great results. Still, it's important to train yourself to be patient so you don't touch the EA while it's working.

So, are you trading by a trading EA? Is it your own trading EA or anything else?
会员从Jul 10, 2014开始   1117帖子
Aug 21, 2018 at 17:00
Adribaasmet posted:
victoriajensen posted:
There are also plenty of traders using EAs and some of those EAs are capable of producing pretty great results. Still, it's important to train yourself to be patient so you don't touch the EA while it's working.

So, are you trading by a trading EA? Is it your own trading EA or anything else?

I have traded using EAs in the past but I am not using one now.
会员从Aug 21, 2018开始   11帖子
Aug 22, 2018 at 06:33
All EAs I tried ended up as a loss. Some worked well for a while but then wiped my account when the trend reversed
会员从Jul 10, 2014开始   1117帖子
Aug 22, 2018 at 16:37
EddyEdgardo posted:
All EAs I tried ended up as a loss. Some worked well for a while but then wiped my account when the trend reversed

Did you backtest them before using them?
会员从Aug 21, 2018开始   12帖子
Sep 03, 2018 at 08:38
victoriajensen posted:
Adribaasmet posted:
victoriajensen posted:
There are also plenty of traders using EAs and some of those EAs are capable of producing pretty great results. Still, it's important to train yourself to be patient so you don't touch the EA while it's working.

So, are you trading by a trading EA? Is it your own trading EA or anything else?

I have traded using EAs in the past but I am not using one now.

May I ask why you stop using EA now?
Discipline rules, not emotions.
会员从Aug 21, 2018开始   12帖子
Sep 03, 2018 at 08:38
EddyEdgardo posted:
All EAs I tried ended up as a loss. Some worked well for a while but then wiped my account when the trend reversed


Well, I have talked with some experienced traders, here is their opinion:

The market keeps changing all the time, maybe EAs can provide significant profits but mostly during a short period.
So, some decide to do it manually, some decide to examine their EAs from time to time.

No matter which way you choose, it is a method, nothing right or wrong.
Hope these words help!
Discipline rules, not emotions.
会员从Sep 03, 2018开始   19帖子
Sep 03, 2018 at 13:38
Trading requires good psychology. And that means, one needs to set the right mindset while deciding the price. Else, good knowledge with poor psychology will never help to make trades fruitful.
会员从Aug 29, 2018开始   10帖子
Sep 03, 2018 at 14:41
I'm not sure about all this psychology talk. Surely if you have a good trading strategy, good money management and you stick to your rules of trading there shouldn't be a problem with emtions
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