Monday, September 6, 2010

Transform emotion


Often traders are affected by certain emotion that dictates their decisions: anger, anxiety, fear, doubt...The goal is to let go these emotions but this is a long term process. Sometimes we think that we already got rid of these emotions but reality shows different.
Its true that we are all different and have different personalities and react strongly on some emotions. This doesnt mean that we cant change how we feel while trading. We should not talk ourselfs into feeling better, this doesnt work. A method for making progress in trading is writing a journal. When we write trading journal our thoughts and feelings are written and we can see them in different way. We can see from this diaries that we have been too hard on ourselfs and negative emotion is quicly gone, and we can focus back on the markets.

If we dont acknowledge emotions we loose this state of mind and dont learn from out mistakes, we are just left with all that negative emotion and continue trading and usually making more mistakes. We dont want to surpress this feelings, we want to experience them and learn from them.

You should know every second what is your emotional state. If you are not neutral you should not trade.