Trading Psychology : anger and trading

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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ShaunWhite
Posts: 3822
Joined: Sat Sep 03, 2016 3:42 am

Wed Oct 25, 2017 3:53 pm

All good advice above but also...

You only get angry if your losses really sting (well I did, find out what triggers yours) so if you can, avoid the big red scenario in the first place, the anger issue won't be relevant.

1.Big fan of a guardian bot to green or to sound an alarm when liability comfort limit is exceeded. Not the real answer but might snap you out of your brain fog moment. A massively irritating bot because in that moment you think you're smarter than it is, but you're always happy it over-ruled you when you've calmed down. Needs to be well out of harms reach.

2. Place a stop loss when you first open the trade (or before actually) and LEAVE IT THERE.

Failing that, 3 Mogadons and a spliff. All the focus of a cat watching a bird but no emotional reaction to anything. :lol: Alcohol does the exact opposite.

Derek27
Posts: 3653
Joined: Wed Aug 30, 2017 11:44 am
Location: UK

Wed Oct 25, 2017 10:15 pm

I have far more profitable markets than losing markets. But when I look at my trading records and see five losses out of six markets in a day, it can't be a coincidence. Whether it's a form of anger for things not going right or something else that's bothering me, with hindsight, it would obviously have been better for me to call it a day after two or three losses.

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gutuami
Posts: 1655
Joined: Wed Apr 15, 2009 4:06 pm

Wed Oct 25, 2017 11:05 pm

the phenomenon is called loss aversion - in other words people hate loosing. And not only people, monkeys hate it too

https://www.youtube.com/watch?v=DUd8XA-5HEk

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