Our friends at Tradeciety.com asked:
How do you deal with emotions in your daily trading? What are your tips and suggestions that help you avoid, if possible, making emotional and psychologically caused trading mistakes.
Trading on tilt is the 800 pound gorilla on every trading station. On our desk today there were a few desk slams in this $FB, Facebook, as it changed direction as fast and frequently as an NFL running back. Managing your emotions as a trader is well…..manageable.
In this video, I outline ways to help manage your emotions:
- Taking notes actively while trading in a journal
- Focusing on improving everyday and not your PnL
- Developing outside interests so trading is not central to your self-worth
- Visualization exercises so you are not as hot as often for so long or as frequent
- Visualization Guide by Bruce Bower
- Taking a walk to cool down for 10 minutes
- As Dr. Steenbarger suggests, measuring your heart rate while trading
I hope this video helps you manage your emotions more effectively as a trader.
And I ask our trading community, what tips do you suggest for managing your emotions while trading?
*no relevant positions