People who can control their emotions should trade forex. The best traders are the ones who can control their emotions. It is easy to allow yourself to be carried away by emotions, especially when the market is volatile.
Emotions can cause you to lose your focus which could lead to major setbacks. How can one maintain a positive outlook in a day full of highs and lows, wins, and losses?
These five tips will help you do just that.
Take a walk
Take a walk after you have completed a trade. Even if you only walk for a few minutes, walking will allow you to regain your focus and give you a break from staring at your computer screen. Regain your sense of calm. Keep your emotions under control and get back to work.
Find Out The Most Volatile Hour Of The Day
You can take a break once you have mastered the most volatile trading hours. It’s better to read a book or listen t your favorite music rather than get involved with trading that can make you feel frustrated or lose your cool.
Wins Or Losses? Take a break
Emotionally, a series of wins or losses will impact you. A series of three wins can make you feel confident, while a string of back-to-back losses could make you feel anxious. Take a break when you see these situations. You should stop trading at the third.
Avoid the Profits and Losses
Losses and profits are the two things that bring on the most emotion. Keep an eye on your trades throughout the day. Do not let the joy or pain of a trade ruin your trades. After you’re done trading for the day, take a look at your gains and losses.
Fear Not
While it is okay to feel scared, letting fear rule your life is suicide for traders. Ask yourself “Am I Scared?” If you have an answer of ‘Yes’ to any question, stop what you are doing. Clear your mind and look at the trading rules and methods you use. Reduce the size of your trading and keep one. Continue this process until you get an answer to your question.
Although, controlling your emotions won’t give you the winning edge in trading, it will improve your decision-making skills. These forex trading tips will help you make better decisions and improve your trade performance.