As a day trader, you should have a full control on your emotions for the fact that there is a direct proportion between controlling emotions and the profits of your account. A slight emotion control while trading may cause losses of your earned profit sometimes in no time!
Let’s have a clear example, if you had several losses in a trading session, there is a big chance for you to become afraid of a losing day. This fear could lead an over leverage causing a blown-up trading account by a single trade.
In most cases, day traders understand that trading is a matter of probabilities. It is well known that traders should control their emotions and stay detached from the results of each trade.
Control your trading environment
Make sure you don’t add glue to stick with your positions and do not let fear and greed affect your decisions.
While the above are great reminders, they are so little applied. Saying is of course not similar to be in the situation.
Focusing is the most recipe that should be considered by traders. Thus, it is definitive for traders to know exactly how to control their emotions while trading as there is no space to speculate on vague statements.
So how to control emotions while trading?
Here are some simple tricks.
1. Step Away From Your Trading Screen
Even for as short as a minute. Trading should not be glued with fast and furious nature making it very easy to be trapped in an ocean of emotions. This simple act clears your mind and reminds you that you are in control.
2. Know The Least Tense Hour Of The Trading Session
Spend it on something that is not related to the market, reading a book is a good choice.
Mostly, trading strategies will work when the price action is volatile. Trading on a congested market might cause anger which will be followed by incorrect decisions.
So yes, the best solution is to take a break if the market is not going anywhere.
It is not always preferred to read trading books in the break time. Reading them always will eventually give you some trading ideas which might look bright to you to try immediately. These trading ideas should be planned well before becoming practical because mostly they are almost losing propositions.
3. Stop Trading After 3 In a Row Wins or Losses
Three wins in a row will make you feel super and you will think that you cannot lose. You are indomitable.Three losses in a row will make you feel like a loser causing you to take a revenge trade which could cause further losses.
It is very hard not to be affected when a certain event occurs for three times in a row. Let’s avoid this problem completely and stop trading after three in a row wins or losses.
4. Don’t Keep Looking At Your Profit And Losses When You Trade
It is almost impossible to find a figure that causes a huge wave of emotions than profit or losses. Many of traders consider their profit or loss as self-value. Negative call, you are greater than your profit or loss.
Having the daily loss limit is the most important rule in trading because you will be protected from further or severe losses, Thus, do not keep on checking your profit or loss and focus on the next to do action.
5. “Am I Scared?”. Ask Yourself
Traders often encounter the intense of fear emotion. Keep on asking yourself, “Am I scared?”. At the point, if the answer is yes, exit right away, have a look at the trading rules and sizes, and repeat.
With the above points, you will be able to control your behavior towards the market and make it easier for you to gain profit or at least not taking the risk for severe losses. In addition, it is required from you as a trader to use the right methods and tools for a successful trading.
VertexFX Trader is a great solution for the sophisticated options and tools it has. Not only the built-in features will help you but also those developed apps to add within your trading strategies.