emotion vs. prediction

This is a discussion on emotion vs. prediction within the Psychology, Risk & Money Management forums, part of the Methods category; Here, emotions are generally unnecessary. They need to leave, only make decisions with a clear head and no emotion...

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Old Oct 31, 2016, 12:57pm   #31
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Here, emotions are generally unnecessary. They need to leave, only make decisions with a clear head and no emotion
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Old Dec 10, 2016, 2:10pm   #32
 
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Originally Posted by radhikha singh View Post
it is not practically possible to become emotionless as you are not a trading robot.. but yes you should have a good command on being both depressed and excited if you want to do trading successfully.
Actually, it is *click*.

If you're emotional about your trading, you shouldn't be trading.
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Old Feb 2, 2017, 12:59pm   #33
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Like someone said early in the thread you cannot really escape from your emotions. However the purpose is to not make a trading decision based on emotions, but rather on objective factors.
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Old Feb 5, 2017, 6:56pm   #34
 
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So true! This is the thing I struggle with most. I follow my rules and stay true to what I think will happen, but nothing prepares you for the feeling I have in my heart when I have a losing position and it's getting worse! The only thing I can do is set up my stop loss and leave my laptop alone. Watching the trade makes it so much worse.
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Old Feb 5, 2017, 7:54pm   #35
 
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Originally Posted by DavyBFX View Post
So true! This is the thing I struggle with most. I follow my rules and stay true to what I think will happen, but nothing prepares you for the feeling I have in my heart when I have a losing position and it's getting worse! The only thing I can do is set up my stop loss and leave my laptop alone. Watching the trade makes it so much worse.
Crack open another can of beer and it doesn't feel so bad.
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Old Mar 14, 2017, 8:45pm   #36
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One of the biggest factors why new traders fail is controlling one’s emotions.
I found very reliable tips that can help you with trading non-emotionally:

1. After your analysis on the trade – set your stops and limits and NEVER adjust them. Sometimes you will be right, sometimes wrong, there is nothing in between. But keep in mind that if you start applying changes – that is a bad habit. Bad habits leads to more bad habits and the snowball gets bigger and bigger. Time to start with good habits as it would lead to other good habits.

2. You need to accept the fact that there will be “LOSING TRADES” – there always is. Most new traders cannot accept this truth, which is another reason why they FAIL. This leads to revenge trader & over-trading. At least 90% of newer traders will abandon a system if it yields 10 losing trades in a row… They will look for the “Holy Grail” strategy which clearly does not exist in trading.

3. You shouldn’t set “daily goals”. You don't know what will happen today, tomorrow, or the day after. Thinking you will for example, gain 1% every day is unrealistic. There will be losing days, flat days and big up days. Not reaching a previously established goal will led again to over-trading.
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Old Mar 15, 2017, 9:01am   #37
 
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BUT without emotion one is half dead if one can no longer feel joy and happiness. But as you so rightly say the other side of the mountain is sorrow and frustration.
Suit yourself and your situations maybe. Where the highs and lows aren't too excessive.
Moderation may be boring sometimes but there are huge advantages when it really matters imho
Patience is all important but a hard lesson to learn.
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Old Mar 27, 2017, 1:28pm   #38
 
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Originally Posted by cesar470 View Post
One of the biggest factors why new traders fail is controlling one’s emotions.
I found very reliable tips that can help you with trading non-emotionally:

1. After your analysis on the trade – set your stops and limits and NEVER adjust them. Sometimes you will be right, sometimes wrong, there is nothing in between. But keep in mind that if you start applying changes – that is a bad habit. Bad habits leads to more bad habits and the snowball gets bigger and bigger. Time to start with good habits as it would lead to other good habits.

2. You need to accept the fact that there will be “LOSING TRADES” – there always is. Most new traders cannot accept this truth, which is another reason why they FAIL. This leads to revenge trader & over-trading. At least 90% of newer traders will abandon a system if it yields 10 losing trades in a row… They will look for the “Holy Grail” strategy which clearly does not exist in trading.

3. You shouldn’t set “daily goals”. You don't know what will happen today, tomorrow, or the day after. Thinking you will for example, gain 1% every day is unrealistic. There will be losing days, flat days and big up days. Not reaching a previously established goal will led again to over-trading.
I agree with most read on this thread, also the tips you've provided but I do find myself in concord with all of them. Regarding the last tip: one needs to be flexible, yes, so rigidness in the form of strict goals, be it daily, bi-weekly or monthly, can be fatal. Nevertheless, it's certainly better to follow an agenda and have some sort of plan/objectives, otherwise chaos will reign (or at least I think so, I'm still pretty new). This also covers partially the first tip about lack of adjustment. Creating such a habit will definitely imprint on your trading style and sure, you'll probably soon start making frequent exceptions, basing your decision on some twisted rational. So I also agree here, but making never, ever adjustments just won't work. As said in the end with the advice not to put daily goals, the market is constantly changing, thus the strategy with stops and limits should also be evolving. After careful review and consideration, but evolving nevertheless to match the market occurings.
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Old Mar 2, 2018, 11:59am   #39
 
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I believe that only programs and robots are capable of trading without emotions, in all other cases, emotions are simply inevitable and sometimes even useful.
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Old Mar 10, 2018, 7:30pm   #40
 
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Originally Posted by robbens View Post
I believe that only programs and robots are capable of trading without emotions, in all other cases, emotions are simply inevitable and sometimes even useful.
One needs every little advantage to beat the markets, even crafted emotions.
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Old Mar 10, 2018, 8:49pm   #41
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Emotions

Sure emotions are who we are as humans that a trader cannot escape. What I try and do while trading and emotions come up I acknowledge it speak it out loud. It's like I feel more in control at that point.
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Old Mar 11, 2018, 8:47am   #42
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Never predict In trading .......anticipate and react

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Old Mar 20, 2018, 4:23pm   #43
 
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Predictions won't lead you to anything good. Forex is a very fickle market and you need a very accurate and precise analysis, and not some predictions.
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Old Mar 23, 2018, 7:09pm   #44
 
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Why do you think so? There're robots for trading now, and they predict rather than think. It's quite good to trade with them. I've tried it, the results were positive.
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Old Jul 12, 2018, 9:59am   #45
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Originally Posted by robbens View Post
Predictions won't lead you to anything good. Forex is a very fickle market and you need a very accurate and precise analysis, and not some predictions.
Right. Anyone can predict which is why majority are in loss.
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