Trading requires a peculiarly-balanced mix of emotional skills.
- If you trade out of fear, you will fail to take positions and close out winners early.
- If you trade out of hope, you will hold onto your losses and not take profit when you should.
- 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.
- Instead of fear, you need prudence so you can cut your losses short and take profit when the market tells you to.
- Instead of hope, you need courage so you can hold onto your big winners.
- 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.
About the Author
Sam Eder is a currency trader and author of The Consistent Trader and the Advanced Forex Course for Smart Traders (get free access). He is the owner of www.fxrenew.com a provider of Forex signals from ex-bank and industry traders (get a free trial). If you like Sam’s writing you can subscribe to his newsletter or get FREE access to his acclaimed How to Be a More Consistent Trader Short Course.