The Emotional Dynamics of Trading

We've just published a new T2W article called "The Emotional Dynamics of Trading" by Martin Laurence Kemp.

Quick Summary: The lure of financial freedom through the trading offers a sense of adventure, challenge, and stimulation.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

A very important and useful article, written about an all too often neglected area.

Thank you.

A very good description of the evolution of the mind to detach itself from being driven by your emotions.Complete Self awareness is the key,that is why Trading is an Art.
Trading consistently can take a long time for some including myself ,it depends how far along the journey of self-awareness and the ability to detach your self from your emotions during trading.
If i read this 5 years ago it would have helped me a lot,but probably i would not have understood it then.
Excellent Article

Top stuff!!!

I found Transactional Analysis excellent in helping me understand my internal conversations and the importance of being a mental winner.

I think for an under-achieving trader investing time and money with a therapist is worth every penny.

Here are some choices:

If you are very logical Transactional Analysis.

If you are very emotional Gestalt.

If you are hooked on your childhood Psychodynamic Counselling.

If you are very artistic Art Therapy.

If you are very intellectual Philosophical Counselling.

If you are very rich Psychoanalysis.

If you are a humanist Person-Centred Counselling.

If you want to get it all of your chest Primal Scream Therapy.

Good luck and enjoy this trip because it is a trip!

Very good.
I particularly like the fact that he acknowledges that it is nigh on impossible to detach yourself from your emotions.
The goal of the average trader is to accept those emotions but NOT to react to them.
He/She simply RESPONDS by taking a trading action.

Is that black and white photo of the author meant to create that emothional atmosphere like those in Stephen King novels?

Excellent article.

I realised from a fairly early stage that controlling my emotions and impulsive urges was the key to my own personal trading success.

I found that the best way to not get too emotional was to trade with very small size at the beginning and increase size very slowly in line with profit growth. Since profits are fairly inconsistent when one is learning, this can be a pretty long-winded and tedious process. However, it does tend to ensure that losses are kept small and it allows one to gain confidence as one learns and goes along, without any of the emotional earthquakes I have often read about.

People who trade 1,000 share size in Nasdaq stocks from day 1 ( and I am sure there are plenty of them ) are likely to lose emotional control quickly, panic and lose their shirt.

A slow and measured approach keeps you in the game and keeps you emotionally intact and has made me consistently profitable.

Best article I have read on here, thank's.