What emotions do you encounter the most during trading?

[WalletInvestor]

I agree! Fear is a very common emotion that every trader faces at times during his trading journey. It hinders the rational approach of a trader. It is always good to have a strict trading plan and calculative strategy.

Yes, a trading plan is important and helpful in stopping fear from influencing your trades, as long as you remind yourself you need to stick to it no matter what.

 

[smithanderson]

Yes, a trading plan is important and helpful in stopping fear from influencing your trades, as long as you remind yourself you need to stick to it no matter what.

Fear is very common in new traders as we don't have the required experience at that time, so we naturally feel less confident.

 

[smithanderson]

I can totally understand that. I used to trade fundamentals and always with a stop loss, for about two years. I made some profit, maybe 20 - 30% in a year but I got tired of dealing with macroeconomics, politics and the state of the world each day and so decided to become a technical trader instead.

I'm proficient in all aspects of technical trading (candle formations, patterns, etc etc) but ultimately I found a grid strategy (with no stop loss) to be the most profitable over the long-term. Sure, I have extended periods of drawdown but I approach forex trading the same as I would investing and prefer to average in to positions over time, rather than stick to a firm stop loss and take profit, which is what retail traders are taught to do from the outset. My view is that a stop loss benefits the broker more than it does the trader!

As you will know, there's no right or wrong way to trade, we all capitalise on the market in different ways... but I certainly see stop loss orders are more damaging than useful in most circumstances. There are other ways to manage losing positions that keep you in the game.

I’ve never heard of any trader following grid strategy without automated stop orders. I'm really amazed and curious at the same time about how you are managing it but if you are making profits, that’s all that matters.

 

[skiascope]

When you have your money at risk, fear comes naturally. Other emotions like greed can be overcome with experience. But as you will always be taking risks with your money, it would be hard for you to overcome fear.

 

[quidsworth]

Emotions define a being and it is obvious that they will reflect in your trading. From greed, anger, hope, frustration, revenge, to fear, there is a whole tornado of feelings that one encounters while trading. Like tornadoes can cause destruction, emotions too can ruin your trading. So it is essential to deal with them. There is no definite way to control them. A set of strict trading rules can help. But it is in the hands of traders how to lower their impact.

 

[Zooscopy]

You have already explained all the things. Still I want to add another one, that is confusion. The traders who don't make trading plans beforehand, there is a possibility they will face problems while making any trading decision.

 

[schmutz]

I think hope is a kind of emotion that sets a bar for us. As a result, we start expecting a lot more from the market which is realistically impossible. As a trader, our first objective should be to build skills. Once that part is done, we should take a calculated risk and then proceed accordingly.

 

[Spartan]

It is very easy to get lost in the market. Fear and greed could cloud your decision making skills. Now, the only way to stay calm is to meditate, find a middle ground on which you work best. Do not over trade, use minimum capital and take your time. Do not jump to conclusions, stay focused and learn.

 

[Paulsy]

Greed or fear-based trading decisions are the major reasons why so many people lose in Forex. To grow a small trading account into a successful one, it's important to stick to a single trading strategy and not to fall into the trap of overtrading.

 

[Neology]

I agree with all the points you have mentioned here. Thank you for sharing this.

 

[Whimsical]

It seems to me that fear is the most encountered emotion in trading. Due to the high volatility of the forex market, there is always a fear of losing money.

 

[Finicky]

I believe panicking as a result of market volatility is more frequent and leads to poor trading decisions. They do not stick to their trading strategy and frequently lose money as a result.

 

[Astrogony]

I encounter a lot of emotions while trading, and also before and after I have opened a trade. Some of the prominent ones are - fear of losing, frustration, anger, anxiety, revenge, etc. However I feel some positive emotions too like hope, positive thinking, confidence, and belief at times.

I also want to point out that although we all feel extreme emotions at times, we should never let our emotions take control of our actions when trading. Or else, any such mindless move might wreck our bank accounts.

 

[Linsang]

In my experience, emotions are an inseparable part of forex trading. There is a wave of emotions that is experienced throughout the course such as hope, greed, fear, anger and happiness. It is extremely important to practise techniques that help in monitoring and regulating them. Personally, maintaining a trading journal with a set of strategies has really helped me.

 

[Hippomobile]

Fear, frustration, greed, sadness, happiness, hope, desire, anger, anxiety, and every other emotion that you can think of when a very dear thing of yours is at stake. You are in a situation where you don’t want to lose your money but can’t even do it without taking risks.

 

[Statoscope]

Emotions are very dangerous for trading, every trader should avoid emotional trading. Some major emotions listed in the post can be managed with the right trading strategies, taking a hiatus when dealing with a string of losses or even profits, using EA and avoiding social media rumours, etc.

 

[Capitation]

There is a train of emotions that I go through while trading. Sometimes, I am too hopeful but end up getting disheartened. The other times, I am so greedy that I end up becoming frustrated. I feel sad when I lose. I feel happy when I make profits. There is no limit to how I feel while trading.

 

[Theresa Duron]

All the listed emotions are indeed like a poison to your trading career. Furthermore, emotions such as anxiety, stress, revenge, disappointment, overconfidence & underconfidence, and frustration are also very hazardous for you.

 

[Sacralgia]

Fear gets in the way, sometimes. Anxiety. Sometimes attachment and expectations. All are normal, but controlling and regulating them is the key. Extremes of such emotions might result in loss of both money and health.

 

[Retropulssion]

Sometimes it’s a sudden wave of anxiety. Sometimes I feel fear and anger. FOMO is there, but not that often. But I know how to control them all, otherwise, they’ll impact my trades.