The 8 Tips For Managing Trading Emotions
1- You have to realise that forex trading is not a gambling game or an easy way to make quick cash. The casino is.
2- Size your position properly so that you are not risking too much on any single trade. Even losing on a few trades ain’t going to jeopardise your living standard.
3- Plan your trade in advance to avoid taking impulsive trades out of the fear of missing out on good opportunities. Never jump into a trade straight unprepared.
4- Do not personalise losses as the market does not know you at all, nor does it move against you on purpose. It just does what it’s supposed to do.
5- Develop a trading plan and follow it with rock-solid discipline, also understand that your plan needs time to yield results. Do not dump your plan because of the temporary losses.
6- Study and understand the law of large numbers and the concept of random distribution. If you have no idea what the heck they are, ask Google.
7- Accept that losing and winning go hand in hand, and a terrible losing streak will eventually hit. Even the top forex traders in the world like George Soros is not exempted.
8- Take a break from trading whenever you feel overwhelmed by emotions. Go jog, walk your dog, do gardening, read a book, or even catch some zee’s, whatever that can separate you from your charts.