Skip to main content

How do I manage my Emotions while Trading?

The hardest thing about trading is not the math, the method, or the stock picking. It is dealing with the emotions that arise with trading itself. From the stress of actually entering a trade, to the fear of losing the paper profits that you are holding in a winning trade, how you deal with those emotions will determine your success more than any one thing.

To manage your emotions first of all you must trade a system and method you truly believe will be a winner in the long term.

You must understand that every trade is not a winner and not blame yourself for draw downs if you are trading with discipline.

How do I control my Emotions while Trading?

Impulsivity is the problem that 90% of the Traders face. They either enter into Traders too early or exit too early. 

As soon as Market opens there is an Urge to Trade. Something (Ticklish feeling) happens within your Body & Traders ( Including Me) cannot Control themselves entering into random Trades. 

How do I control Impulsivity ?

Whenever I feel that my Emotions are getting better of me & the feeling as mentioned above is deciding my Behaviour. I just get up from my Cabin and have a round of office. I just do some random breathing Exercises and then sit back to Trade.

How do I manage my Emotions while Trading?

The most Distracting element for a Trader while Trading is to keep checking the P&L & by doing that it can also ruin one's Trading Plan. Whenever in Trade , I always ask Myself "IS THIS WORKING? IS MY TRADE WORKING?" 

I always look my Trade as an Outsider & ask myself these 2 Questions whenever I need to review my Trades & if its working I hold onto the Trade or else I get out Immediately.

I am a Firm believer & Practioner of Yoga and I am a Member of Art of Living Foundation. Yoga changed my Life & my Trading in a very Positive way. It Calms you from within. I was very Impatient , Impulsive & Couldn't control my Anger  but now due to Yoga my MIND & THOUGHTS are always in my Control. I Strongly Believe every Trader needs to spend at least 10 Minutes daily for some breathing Exercises.

Remember that you cannot Succeed in Trading if you are not a good Human being & cannot manage your own self.

How do I manage myself after a "Trading Loss"?

It is a Human Tendency to get too excited after  Profits and to get Depressed after Trading Loss. The best way to look at Trading is to consider it as a "VIDEO GAME" . In my Initial Trading Years , as I used to get home after my office I used to behave either too excited if I made Profits or very Depressed in case of a Loss & behave the same throughout. This Behaviour effected the Trading for my Next day because when I was too happy I became Overconfident & when I was too Depressed I became too Emotional while Trading.

Now when I enter home nobody can say if I've earned money or made a loss. My face , My Behaviour, My Emtions remain the same throughout the day. Everyday brings new Challenges & Opportunities but if you carry your Past Baggage in your Head it will ruin your entire Trading System. Whenever you have incurred a loss try to get your mind off Trading. Play with your Dog ( Pet) , Write down your Past achievements , Joyful Experiences & remind yourself that you are not a loser & that loss which you faced today does not define yourself.

Your past achievements can be any of these:

1) Won a Sports Tournament

2) Won a Competition in school.

3) Achievements of Studies.

4) Memories of your first Girlfriend / Boyfriend or your Crush.

These are the Few Methods which I follow to Control my Emotions while Trading. This works for me & it may or may not work for you. You need to develop your own Mechanism & Control your "URGE" . Trading is all about Controlling your "URGES".

Kindly WhatsApp me at 07719887348 & do let me know what methods you apply to control your "EMOTIONS" while Trading & your Comments related to the Blog.


Popular posts from this blog

Pre - Market Analysis (30th Jan 2022)

1. U.S Markets closed higher on Friday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is up 30-50 Points. 5. There's no point discussing Global markets today. 6. As we are dealing with our own local issues as of now. 7. The talk of the town is Adani Group. 8. Every stock Market participant during last 2 days have not spent as much time with their wife /gf /husband /bf as they have spent on researching Adani stocks. 9. They shouldn't have wasted so much time in research and should've spent their time with loved ones. 10. As Ultimately my Pre Market report would clear all. 11. Now , the Adani stock price has gone below the FPO price. 12. FPO price is in the range of 3100-3200 and stock price is around 2800  13. Who will subscribe to FPO when they can buy shares much cheaper from the Market? 14. Also over the weekend Adani has come up with a 450 page report addressing one by one the allegations made by Hindenberg.  15. I haven't

Pre - Market Analysis (2nd Feb 2022)

1 U.S Markets closed lower Yesterday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is down 150 Points. 5. Yesterday was the Fed event in U.S 6. It was expected that they would raise rates by 25 basis points. 7. The same happened yesterday and in spite of that Markets crashed yesterday.  8. Yesterday was a highly Volatile day. 9. Markets were all over the place yesterday.  10. Before the budget , markets were higher. 11. During the budget , markets were flat. 12. After 1 pm markets were at the peak of Volatility.  13. Bank Nifty was down 1000 points by 2.45 pm. 14. In next 30 minutes it recovered all of its losses. 15. The budget was neither good nor bad. 16. The income tax slabs have been revised but also the insurance benefit has gone. 17. All the Insurance companies crashed yesterday.  18. This is a structural change coming out of budget now. 19. Adani stocks crashed yesterday.  20. So clearly there was valuation over hang which is gettin

Nifty hits 17k (15th March 2023)

1. U.S Markets closed higher yesterday.  2. Right now , U.S Futures are lower. 3. SGX Nifty is up 80-100 points. 4. Asian markets are mixed. 5. There has been 4 days of relentless selling in our Markets  6. The reason doesn't seem to be Banking collapse in United States. 7. U.S Markets have settled after a knee- jerk reaction. 8. Our Markets haven't settled yet. 9. This isn't a selling like the previous ones. 10. Previously FII's used to target few nifty stocks  11. Used to sell them and create panic. 12. This selling is now an all around selling. 13. Broader Markets have been bleeding extensively. 14. There is pain all around. 15. Now 17300 becomes a very important resistance. 16. Nifty might retest 17300 and then break 17k. 17. Markets won't collapse in a hiff.  18. There would be intermittent rallies in between to take weak shorts out. 19. FII's have now been selling aggressively.  20. Nifty might trade between 17000 to 17300 today. 21. stockmarke