We know by heart that being emotional is not the best way to behave throughout your trading day. We traders tend to have tens and tens of different emotions in one trade session, causing us unbelievable chemical changes in our bodies, reflecting on our face, and worse on our performance sometimes.
The good news is that there is a way out! You don’t have to be victimized by that voice in your head. You can master it or at least get it off your trading experience.
1. Look at losses as a premium trading course.
Losses happen no matter how smart and experienced you are. There is no way you can just erase them off planet earth. Period. But the good news is that, you can’t only survive losses, you can even use them as a great learning and motivational tool.
The way is to look at these looses are a premium trading course. You get what you pay for, and that is why you can’t learn anything if you are not paying anything. You learn from your winners, but you learn far more from your losses.
2. Stick to your trading system.
We all got our trading style. Some like naked charts, some follow a specific indicator, some just follow the price ticking up and down.
Whatever the system that works for you is, just stick to it. We all get that moment of “oh my, gold is going up and I have to go up with it”; force yourself not to enter that trade, even if the gold indeed went up later, cheer up and congratulate yourself for not breaking your rules.
3. Remind yourself that it is better to lose one trade opportunity rather than losing your self-discipline.
Simple as that. If you break your own rules and win a trade, you actually lost more than you won, unless you learned something that you can add to your forex trading system.
4. Accept that you don’t have to be in the market sometimes.
Forex market is not a privately-owned shop or small business. It is a huge place to be with millions and millions of participants. With that said, it will still be going on with or without you.
Of course it is nicer when you are participating, but if your participation results in you loosing money, then to not participate is the right choice.
5. Take pride in announcing that you’re unemotional. Fake it and youll make it.
Whatever comes out of your mouth, you are the first to hear. Tell your friends, relatives and co-workers that you are unemotional. Take pride in announcing that. Publicly. Privately. Alone.
Really, being unemotional is not a crime, nor it is something to hide from. People want to be unemotional; they just don’t want to say it. If you could be unemotional while you are making important decisions, you would be a much better decision maker.
6. Trade a specific market and try to have lunch time with its folks
If you are a full-time trader, it’s very easy to burn yourself inside out, over trading or at least over-analyzing.
Think about it. If you have a small company or a store, and you hire a guy and put him to work 16 hours a day. How would that guy perform? What kind of work ethics would he have? How productive is he going to be? Compare him to a motivated and empowered 8-hour-a-day employee. Now imagine you give that second guy 100% of your revenu. How would he perform? You are the master of your own trading job. Be the second guy. Never the first.
7. Develop your power to disconnect.
In today’s modern world it’s very easy to be intimidated. We have hundreds and hundreds of events going on around us, some cheerful, some are really not.
Teach yourself to have a real me time no matter what’s going on around you. Learn to disconnect and start with small things, then bigger, then bigger, then trading.
8. Get yourself a punishment bank account.
Set aside a small bank account and transfer there any cash you think you made while trading emotionally. Use this account to pay for things you don’t neccessarily need or enjoy, i.e. buying gifts, giving it away to charity etc. Or better, use it for purchasing trading educational tools.
This way, you will unconciously be less intrigued to make emotional trading because you will feel like you’re not really getting anything out of it.
9. Surround yourself with powerful people.
They say that you are likely to become like the 5 people you spend most time with. Even if this is not true, you are certainly likely to be affected by them.
Choose only smart and strong people to surround yourself with, and only go where you are celebrated.
10. Choose to be a winner, not a victim.
Every day we are faced with this question, “Do you want to be a victim or a winner?”. Whenever life asks you this question, be ready with the answer. The correct answer is winner. Be it.