Managing Emotions When Trading: How To Help

When I first started trading, I thought I had to make a trade every day. 

I would get so stressed out trying to find a trade that would work. I just kept focusing on wanting to get in to a trade and wasn't concerned about making the best trade for me. 

When we are too focused on the emotions of trading and not our game plan, we miss things. We make bad moves because we want to be in the game but the game doesn't have our full attention. We've all done it. I still sometimes catch myself doing it. 

During one of our Elite sessions, we took some time to talk about managing our thoughts and emotions while trading. One of our members, Mel, shared his thoughts and what he does to help overcome the negative feelings he may be having.

Mel shares he was letting his emotions get the better of his trading. Whether he was staying in a trade too long, getting in too early, or just that overall feeling of missing out. 

He took the time to make a game plan and by sticking to it, Mel was able to focus on making the right moves. 

On the days he wants to make a trade but he can't focus on the market, he reminds himself of his plan. This way he can sit and watch the charts and see how the trade would have played out. 

Not making any trades for the day is also a solid strategy. Sometimes the market just isn't in a position where we want to risk it. On those days, it's okay to sit and watch. 

If you're feeling the urge to trade, consider paper trading for the day. This way, you can check if your prediction would have turned out the way you wanted it to, without any financial risk. 

Having or making money is only one part of the trading process. The other part of trading is controlling your emotions.

You don't have to make a trade every day. The quicker we come to this realization, the less likely we are to make mistakes. We want to create a game plan and stick to the plan whenever possible. That includes when it's time to sit out and wait for the right trade.     

Your game plan is going to be unique to you. What are your goals? Do you want to make an extra $50 a week? Save for retirement? The important thing is to plan how you will get there. 

You can first start your journey with us at Power Trades University. If you're new to the market, or looking to learn more about trading, we offer courses for every level of trader. 

I was recently in Cancun and I had to fight myself to not get in a trade... while on vacation. I had to tell myself (after slipping once) that I needed to focus on why I was in Cancun and that I wouldn't be able to pay complete attention to my trades.

We get into trading to not be as stressed. So we don't have to sit at a computer all day and watch the market. We get into the market for freedom... 

So it's okay to step away from the computer and not have to trade.

We forget this because we are so focused on getting somewhere. As Mel says, "trading is about giving us a quality of life, and if in the process we erode the quality of life and us being stressed - it's just not worth it."

Imagine what making a plan and sticking to it could do for you...