Overcome the underlying psychology of trading by adopting a ‘robot' mode
Having a strategy to follow is a must for any trader. Your trading strategy will help you find entry and exit points into trades and limit your risk.
But even if you have the best trading strategy out there, there's a big problem you have to contend with. That problem is your emotions.
Unfortunately trading brings emotions out. And they can play havoc with your profits.
So what can you do to overcome them?
Read on to find out…
The real implications of your emotions when trading
Having a good trading
strategy is only half the battle to be profitable. The other half is down to controlling your emotions.
The problem comes when you start trading with your own money. It has such negative effects on traders.
As a trader, you need to make quick decisions. This can lead to self-doubt and anxiety, especially when you could lose money.
When you bag a profit, you’ll feel fantastic. Get a trade wrong and you’ll feel deflated about ever trading again.
You need to emulate a robot when you trade
The best traders are those who can operate mechanically and ignore their emotions. So what can you do to emulate this robot mode?
You need to become a creature of habit when you trade. This involves sticking to your trading strategy like glue. You cannot deviate from it.
Over time work on a trading plan that will work with difference scenarios you may face. And make it your quest to follow this plan with precision and emotional detachment.
Unfortunately some traders just don’t have the psychological make-up to trade in this disciplined way. And if this is you, maybe you have to make the decision whether trading is really for you.
You also have to be determined. If you have enough determination, you won’t let the odd loss hold you back. You’ll learn from it and move onto your next money making opportunity.
So there you have it. How to overcome the underlying psychology of trading by adopting a robot mode.