Are You Emotional or Erratic?
Do you have the emotional fortitude to make it as a trader?
Trading can be a challenging endeavor, and one critical aspect of success is mastering your emotions. Let's delve into this topic further.
Hello, fellow traders! I'm Andrew Mitchem, the founder of the Forex Trading Coach, presenting you with video and podcast number 518.
So, what kind of individual makes a successful trader?
Today, I'll be quite straightforward, and my words might ruffle a few feathers, but perhaps that's necessary. To increase your odds of becoming a proficient trader, you must learn to manage your emotions. Being erratic and emotionally driven won't serve you well in the trading world.
Balancing Strategy and Emotions
Trading is not just about having a strategy and comprehending the market; it's also about understanding your own mind, emotions, and heart. We trade with real money, and emotions inevitably play a significant role. You can't ignore that fact. While you might not fully grasp this concept if you're trading on a demo account, it becomes abundantly clear when you switch to live trading.
To succeed in trading, you must harmonize your emotional and psychological aspects with your strategy and market knowledge.
We've all witnessed emotional and reactive behavior in various aspects of life. Whether it's road rage while driving or airport meltdowns due to stress, these emotional outbursts are all too common.
In recent years, with global events unfolding, we've seen individuals expressing strong emotions when their opinions differ from the mainstream. While it's entirely natural for people to hold diverse views, some respond emotionally rather than engaging in thoughtful discourse.
The same principle applies to trading. You must gain control over your emotions. It's imperative.
Develop a Plan and Stick to It
Maintaining emotional control in trading requires having a plan and adhering to it. Some traders may impulsively change their approach, saying things like, "The 6-hour charts are useless because they didn't work last week, and I lost money." This kind of reaction is counterproductive.
Consider my strategy, for example. I consistently examine daily charts and the 12/8/6-hour charts at specific times each day. I do this without fail, and it has been a practice since 2009. We publish our daily trades every day, and we conduct weekly live webinars unfailingly.
Emotional reactions also extend to risk management. After a losing week, some traders might double their risk the following week or decide not to use stop losses. These emotional decisions do not contribute to consistency.
Consistency is Key
Consistency in trading relies on having a sound strategy, using common sense, adhering to your plan, and showing up consistently, regardless of market conditions. This consistency stems from your mindset, emotions, and determination.
If you're willing to work on mastering your emotions, developing a plan, and sticking to it through the ups and downs, then it's time to reach out to us. You can contact us via email or book a call to speak with me or one of my team members. I'll include a link in this video and podcast for your convenience.
Blueberry Markets
Lastly, if you're in search of a reliable broker, I highly recommend Blueberry Markets in Australia. They offer the Metatrader 4 and Metatrader 5 platforms, along with a wide range of markets on MT5. They are known for their excellent customer service and responsiveness to client needs.
In conclusion, mastering your emotions, maintaining discipline, and being consistent are essential elements for successful trading. Relax, enjoy your trading journey, and remember that emotional control is the key to your success.
I look forward to speaking with you again next week. This is Andrew Mitchem at the Forex Trading Coach. Goodbye for now.
