emotion vs. prediction

Malordana

Junior member
22 1
If people had predictive abilities, then there would certainly be a person in whom they would be more developed. At the moment, NO ONE person has proved his predictive abilities.
Why then get rid of emotions?
Let's pretend that you lost your money. if you do not get rid of emotions, then you are upset. With sadness, melatonin is released. Melatonin is a sleep hormone. If melatonin is released, then the person wants to sleep. Its concentration decreases and it is more difficult for him to analyze the market.
At the same time, endorphins are released. And endorphins give a sense of hope that everything will be fine. The trader has the idea that he will be able to return all the money. He will most likely lose even more money.
 

Akinozragore

Member
62 4
successful traders follow their strategy and overcome their stress. if everyone around you says BUY but your strategy says SELL, don't get emotional and follow your strategy. coding can be a solution to overcome emotion and do what your strategy says, but coding has many drawbacks too. one of them is that you can't always code a strategy to act exactly like you do. another matter is that codes and computer can have bugs, or suddenly face problems. I say the first decision about trade enrty which comes to your mind based on your strategy, you follow that decision and on't watch the chart and think more and more. when you entered a trade, don't sit and stare at chart, it does what it must do. set and forget.
 

Peter5510

Newbie
6 3
First, let's look at market prediction. Many market experts make predictions and some predictions were right and most were wrong. Wrong predictions were easily forgotten. I would incline to believe that the market is very hard to predict but IF observe long enough one can have a general feel for the market.

Second, what is emotion? What's in the mind of a driver first time on the road? He or she has to be constantly look out for other vehicles, traffic light, zebra crossing etc. YES, the first time driver is very tense at this stage. Overtime, the traffic rules sink in and everything is at ease. Of course, we cannot compare trading to driving. Trading is lot more difficult than driving in the third world countries where rules are bent.

In trading, it's all about the survival of our trading account. As long as we are in the market, we can learn from it and establish our own "flexible" rules. Why "flexible"? Market condition is not constant. As long as we are in the market, we can practise our trade and apply/test our rules. As long as we are in the market, we need capital. Once the money runs out, it's game over.

Don't plunge in where the angels fear to tread. :rolleyes: A bird in the hand is worth two in the bush. :D
 
  • Like
Reactions: Pat494

Akinozragore

Member
62 4
Emotions may help you lose everything you earned with your hard work. Until you learn to use risk management regularly. This will be one of the most important skills for learning to trade in the market. If you do not plan to learn how to manage your risks, you can simply withdraw money instead of putting it into a trading account; the result will be the same. The best condition for studying risk management is a small amount on a real trading account. Therefore, study the risk-reward ratio and other methods of money management and develop your trading plan. Although emotions are related to intuition and inner sense, it is better to not use it too often in your trading.
 

Sharim

Junior member
14 2
I doubt that there are any special brain parts for "predictions." But I believe in trader's instincts. This is not about foreseeing or being an oracle, but about the subconscious processing of a part of information with your brain. Traders call it instinct. Agree, often something inside tells you to open a deal or to close, although there are no visible reasons. It's because you have unconsciously calculated the opportunities and know what will happen. But emotions are different; they tend to make everything too absolute. You are either very afraid or very risky. And emotions must be suppressed, but you should follow the trading instinct and keep calm.
 

Nuadarne

Junior member
33 1
I think that knowledge plays a major role in trading. Thanks to them, we analyze the market and understand how to earn money. If we rely only on our emotions and feelings each time, trading turns into a game on luck. I'd rather believe that with time, when you trade constantly, you start to notice more regularities. This helps you to orientate and make the right decision faster. I think it's just an experience that gives you more confidence. And many people think it's intuition or something else. Emotions need to be under control. I think you can relax completely only when you see a good profit. Otherwise, you have to think three steps ahead and find a solution for yourself in case of failure.
 

AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock