The Peculiar Mix of Emotional Skills That Trading Requires: By Sam Eder

Trading requires a peculiarly-balanced mix of emotional skills.

  1. If you trade out of fear, you will fail to take positions and close out winners early.
  2. If you trade out of hope, you will hold onto your losses and not take profit when you should.
  3. If you trade out of excitement, you will overtrade and take the wrong positions for fun.

Instead, you need to find the positive versions of these emotions.

  1. Instead of fear, you need prudence so you can cut your losses short and take profit when the market tells you to.
  2. Instead of hope, you need courage so you can hold onto your big winners.
  3. Instead of excitement, you need to positively embrace the challenge in front of you so you take the trades you should.

Try re-orientating your mindset to one of passion and love for the craft of trading. Try trading with joy and an expectation of success. The positive emotional skills are by-products of these mentalities.

Take care.

Cheers,

Sam

Source: FXRenew

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