Guide on controlling your emotions while trading on the stock market.
Stock Market has been damn hard this year so far and it’s not looking too optimistic towards the end of the year. The positive side of this is that if you learn to survive and navigate through times like this, you’ll thrive in the bull ones with ease.
Things can change in minutes where a sure trade can turn up on you. Here’s a short guide on managing your emotions while trading:
- How are you feeling right now? At this moment — at this time: angry, frustrated, lost, anxious?
- If all this is going on your mind: step back, hold on, don’t trade. Instead: take a walk, talk to family, make a call, think about other good things in life.
2. Did you lose your last trade? Did you lose big?
- You are probably feeling angry, frustrated and want to do revenge trade. Don’t do It. Step back. Save your capital. Remember there is
no one you are fighting against. It is all you and the market. Market has no emotions.
3. Are you being greedy right now?
- If yes, slow down! Remember small wins count. Don’t let your emotions control you. Take your profit if you are winning. Remember become successful is not a one day journey. It will take time and patience.
4. Are you feeling FOMO (Fear of Missing Out)? Are you watching a stock spike and want to get in?
- If yes, Don’t let emotions control you. Remember last time you lost big chasing. It is not worth it. You will get next chance to get in early. Don’t let emotions control you.
5. Have you lost big for the day?
- Step away. This will make you slave of your emotions for the rest of the day. Shut down your application and walk away. Think about other good things in your life.
6. Have you won big for the day?
- Step Away. You have a choice of walking away with big green for the day.
Don’t lose your profits. Don’t try to fall in love with same Ticker. You are excited and happy and over confident. If these emotions are heavy right now. Please don’t trade.
Difference Between Success and Failure is simple: Those who control their emotions are part of 10% really successful traders, those who don’t are 90% of traders. Don’t be the 90%, You are better than that.
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