emotion is your enemy

[bansir]

Hi Folks,
Haven't posted for a while but have been demo trading as per usual in the background.

Following literally years of failure, I have had a very much improved 6 months demo trading FX and I think I have finally began to understand what has changed with the way I trade.

1. Emotion is your enemy.
Overcome this by having a plan and following it; don't flap just calmly as you can 'join the dots' of your plan.

2. The system you are using must have good risk control built into it.
This is about survival.

3. Constantly monitor your average loss and average win levels and strive to make your next loss smaller and your next win bigger than these.

I've still got a big step ahead going live but I thought I would share these points as they have been quite important realizations and it has taken a while to really appreciate their impact on my own trading.

Hope this post may help, if so great! If not, nothing lost.

Best Regards,
Neil

 

[Alex411]

more dangerous is avidity I think.

 

[0007]

Hi Folks,

1. Emotion is your enemy.
Overcome this by having a plan and following it; don't flap just calmly as you can 'join the dots' of your plan.

2. The system you are using must have good risk control built into it.
This is about survival.

Best Regards,
Neil

Good stuff. Took me some time to work it out also.

 

[disi]

Hi Folks,
Haven't posted for a while but have been demo trading as per usual in the background.

Following literally years of failure, I have had a very much improved 6 months demo trading FX and I think I have finally began to understand what has changed with the way I trade.

1. Emotion is your enemy.
Overcome this by having a plan and following it; don't flap just calmly as you can 'join the dots' of your plan.

2. The system you are using must have good risk control built into it.
This is about survival.

3. Constantly monitor your average loss and average win levels and strive to make your next loss smaller and your next win bigger than these.

I've still got a big step ahead going live but I thought I would share these points as they have been quite important realizations and it has taken a while to really appreciate their impact on my own trading.

Hope this post may help, if so great! If not, nothing lost.

Best Regards,
Neil

I would put it even simpler. Trade, trade and trade. Only practice makes you champ. when you learn to walk you do not have any 'system' for muscle management, right? You just...'walk'. Same with trading. Trade on DEMO and when you can actually FEEL you are able to make profits then you can start LIVE trading with small amounts. When you are safe with that you can raise your game.

 

[Citizen2007]

Take a look from the other perspective .

Emotion is your friend - in that if you can begin to identify your emotions they will reveal the underlying reason for it coming to the surface. This will then allow you to begin dealing with the real issues . Attempting to understand the why of the emotion as opposed to trying to control it will be a more effective approach for long term success.

 

[shadowninja]

when you learn to walk you do not have any 'system' for muscle management, right? You just...'walk'.

Actually... I don't tend to walk with heavy loads on uneven ground that much but when I hit the countryside with a mountaineer friend, she's always stopping to wait for me to catch up and I'm knackered while she's just warmed up so I started training on gym equipment for it focusing on my calves and thighs and now my endurance and speed is a lot better...

But I know what you mean.

 

[Kiango]

Trading is the easy part - discipline is the hard part - knowing when to say enough is enough and when to be pessimistic rather than optomistic.

Having a set strategy is key ..if you know what you should be doing then you are more likely to succeed.

 

[Black Swan]

Take a look from the other perspective .

Emotion is your friend - in that if you can begin to identify your emotions they will reveal the underlying reason for it coming to the surface. This will then allow you to begin dealing with the real issues . Attempting to understand the why of the emotion as opposed to trying to control it will be a more effective approach for long term success.

Top posting

 

[xebectrader]

Totally agree, to have the discipline to execute your trades and follow your money management is hard but not impossible. Training is the key