How’s your grip on your emotional swings in trading? Are you able to narrow your focus when things start to go your way? Are you able to walk away (if even for a short time) when you recognize that you’re making mistakes? If a fly on the wall were to observe you during the day or during the week, what would he see when it comes to your self-control over your emotions?
Making and losing money (trading [1]) inevitably stirs up some emotions within us. Whether it’s the pain and frustration of a losing trade stopping you out, the excitement of money flowing into your account by way of that trade you just nailed, or the uncertainty of that new position you just entered, trading can easily put logic on the backburner if you let it.
[2] Even a little emotion would easily motivate M.J. to perform his best. Can you say that? Few people are able to channel their raw emotions into their best state of performance. Michael Jordan and Tiger Woods come to mind. We’ve probably all seen them get a little miffed at a competitor or themselves, put on their game face [3], and just get hot instantly. However, the majority of people don’t have that ability, so removing as much emotion as possible is the best bet when it comes to damage control and staying cool under pressure.
Keep tabs on your emotions and take note of the times they help you and when they hurt you. If you find yourself digging a deeper hole when you get frustrated, then employ some logical steps to avoid repeating this mistake. If on the other hand you find your good days getting great as a result of your narrowed focus, then maybe you’ve got that special edge so many traders lack!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com [4]
[tags]Trading Psychology[/tags]
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