Controlling Your Emotions

Filed under: Learn Forex Trading |

Continuing on from yesterday’s article “Trading Forex: The Inner Game”, I would like to delve deeper into the topic today and try to get to grips with emotions and how to control them.

 

Yesterday, I compared trading forex to the world of professional sports and outlined how the people who are considered to be the best and most successful are the ones who have successfully managed to master their emotions – especially when the going gets tough.

 

Emotions are what make us human, but they can also be the catalyst for our own failure – and this applies not just to trading or sports, but also to our lives. How many people make poor decisions, life-changing decisions, when they are under emotional stress? How many arguments are caused by people losing control of their emotions and not communicating effectively? It is something that we all can work on – and something that is necessary if we are to become successful human beings.

 

Of course, managing emotions comes easier to some people than other, but I believe that controlling our emotions is essentially a habit-forming behavior. It has to begin with the everyday little things, and then once you have started to master this, you can start to bring this mastery into your trading. If a trade that you put on becomes personal, emotional, and is keeping you up at night or ruining your holiday because you can’t stop looking on it to check its progress, then you really should just cut it loose. No one trade should disturb your daily life like that. Trading should be a process, and you should try to keep any feelings about it at bay. This is why I mentioned yesterday that a trading diary could help you to control your emotions in your trading. A lot of the time, we are not even aware of our emotions because we don’t dwell on them or analyze them. But if you write them down, day-by-day, you may start to see a pattern that you can fix. It is a constant battle that we all must struggle with – but you’re not alone. Just take it one step at a time…

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