Forex traders should control their emotions because any slight mistake related to controlling your emotions can destroy all the profits that you put in the effort to earn overnight. For example, you may fear the loss after you incur a number of losses in a previous trading session. This fear leads you to increase the traded funds and destroy your account with one trade.
How many times has your trading account been destroyed by losing control of your emotions?
Flipping your emotions daily is not permanent.
Full-time traders realize that trading is a game based on possibilities and we realize that we must control our emotions and separate the results of each trading and we have undertaken dozens of trading rules that advocate this.
Do not insist on your trading
Not affected by fear and greed
Stay in the professional zone
Although these express statements are powerful reminders, their practical value is minimal because they do not indicate the exact procedure that must be taken when trading.
Daily trading requires focus and its procedures are different, so it is necessary for the daily trader to know exactly what he must do to control his emotions during trading, as he does not have time to study mysterious phrases.
What can you do specifically to control your emotions?
Go out for a short walk after each trade
Even for several minutes!
Since the daily circulation is crazy fast, it is easy to enter into a sea of emotions.
Moving away from the trading screen helps you to have a deliberate rest period away from the circulation rhythm, and this is a physical measure that helps you control the circulation rhythm, a simple procedure that clears your mind and reminds you that you are able to control.
Listening to music also helps you get away from the market.
The market does not involve you in trading, but the opposite is where you can get away from the market whenever you want, you are able to control.
Take advantage of the least active times in the trading session
Read a book these times, watch the games or watch a movie!
The full-time trading strategies perform in the best possible way when prices fluctuate. Trading in a crowded market leads to frustration followed by a state of anger and then your emotional revolution begins to break down a little.
The best solution is to take a break when the markets stop moving.
And you should not read anything related to trading. Trading books give you ideas about trading that may lead you to try them, and trading ideas are lost suggestions if they are not part of a fixed trading plan.
Stop trading after three winning or losing rounds
If you win in three consecutive rounds, you will feel that you are an extraordinary trader and you will think that you cannot lose and that you are invincible, which leads you to increase funds and trades. If you lose in three successive trades, you will feel that you are a loser, that you do not want to lose, your emotions will control you, and you will start trading out of revenge.
When a specific event occurs three times in a row, it is difficult not to be affected by it, so let’s avoid this entire problem by stopping trading after three consecutive mobile phones, whether winning or losing.
Do not look at your profits and losses while trading
There are no numbers that raise emotions more than the numbers related to profits and losses, as these numbers for many traders express their self-esteem (this is not correct, because you are greater than your profits and losses).
If you follow the most important trading rules and put an end to your daily losses, you have already protected yourself from incurring heavy losses and you will not need to constantly review the size of your losses and profits. Whenever you feel that you are taking a look at the profits and losses you have achieved during the trading session, you should familiarize yourself with the trading rules.
Ask yourself “Am I afraid?”
Fear is a harsh and destructive feeling that traders usually encounter.
Ask yourself, as you watch your trades unfold before you, “Am I afraid”?
If you answered “yes” at any stage of trading, you must exit trading immediately
Review your trading rules
Reduce the volume of your trades
Manage your emotions for long-term success of daily trading
Managing emotions does not stop trading because the limit of trading depends on the method of trading, but you must control your emotions in order to achieve long-term success in trading. By following the five steps above, you will calm down as if you are on a relaxing boat cruise instead of experiencing permanent emotional upheaval.
Managing your emotions needs persistence. Over time, you will realize the benefits of controlling your emotions, and these benefits will be a positive booster for your mental state to continue to follow appropriate emotional habits and responses. It takes time, but if you have a will, it will be easy.
More articles on controlling trading psychology:
Trading psychology: the role of the psychological state in circulation
Trading psychology and how to control emotions: part one – greed
Trading psychology and how to control emotions: Part Two – Fear
Trading psychology and how to control emotions: Part Three – Trance Ecstasy
Trading psychology and how to control emotions: part four – panic