Monday, May 25

The Counter-intuitive Way To Control Your Emotions In Trading

I don’t know any trader who doesn’t struggle at times with their emotions. Likewise, I don’t know any trader who doesn’t wish that they could control their emotions better. Here’s an excerpt from an email I just received from a trader named Srinivasa:
I have a problem with hesitation. Even though I have a strategy that fits my personality and is consistently profitable, I still hesitate on 2 out of 5 trades. And for some strange reason I always hesitate when the profit would have been the best. My whole body senses that I need to take the trade, but it’s almost like I have another person in my mind who controls me and holds me off from following my intuition.
I’m sure we can all relate to this. I know I can. Sometimes it feels like our emotions literally take over and we are hostage to them. Almost like it’s another person in our mind, as Srinivasa notes. So the natural question becomes: how do you control your emotions while trading?
And the counter-intuitive answer is:


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