Emotion and Trading

While trading I watch my emotional state of mind more than the price action. This has helped me trade better

Here are some of the emotions I feel from time to time and what they mean to me in context of trading

1) hesitation to pull the tigger – something is not right – don’t take the bet

2) anger – start of revenge trading – stop ASAP

3) uncomfortable while watching or not watching the price – non aligned with the market, trading with too much size – reduce size or quit

4) ignoring the little voice and gut feeling – trust the inner voice and take action

5) trading on hope – quit asap

6) thinking after hours or during market hours of money you can make = greed, impatience to make money – focus on how much you can lose

7) stress = wrong side of the market

8) feeling joy = right side of the market

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