|
PureBytes Links
Trading Reference Links
|
Hi,
This email is about how your emotions in trading can be put to good service.
I have found it to be the single most valuable tip for turning a trader
into a more profitable trader whether that means lower losses, or higher
profits, or same profits but less profits given back.
It has worked for a large number of traders because it is personal to each
trader. Its value does not depend on trading system, time horizon,
chosen trading instrument or market.
Exercise of emotions in any activity can become addictive. When addicted
to emotions, the exercise of emotions tends to overwhelm any original
objectives and constraints you may have had.
But emotions are not bad or good - they just are. We are designed with
emotions because overall they have been useful to us in our development -
they carry survival value. I will discuss it from my perspective.
If I feel 'negative' emotions of concern, worry, anger, frustration, guilt,
fear etcetera then these emotions are telling me something. That
something is that my objectives and constraints (even if I am not
consciously aware of my objectives and constraints) may not be being best
served by my current actions.
So I honour my emotions and listen to their message. They often contain
a kind of ancient wisdom. Yes, occasionally my fear might stop me
experiencing something new but even my fear may be one of my best guides to
the achievement of my objectives and constraints.
Maybe a limited example will help. I want to get to my girlfriends house
in one piece and as quickly as possible. If I concentrate just on the
'quickly', I might drive so fast I endanger myself and feel fear of
crashing etcetera. So I honour my emotions and slow down until I feel
comfortable with my speed. I may still be driving faster than the speed
limit and get pulled over by a policeman and taken to the county
jail. If I feel anger or frustration at his/her intervention, it is
telling me something - I would have got to my girlfriends place earlier if
I had not been exceeding the speed limit.
An analogy to trading might be I was first overtrading my trading
skill. Then maybe I was overtrading my margin requirements and account
size, and then the clearing house 'cops' pulled me over. My objectives
of profits were perhaps not best served by my actions of overtrading.
In different ways my emotions had a message for me - my current actions may
not be the best ones to achieve my objectives and constraints.
So my emotions are advising me that an adjustment to my actions might be in
my best interests - and so my emotions can help me achieve my objectives
and constraints.
Fear is the most common exception to this happy situation. It can be
part of the general wisdom, or it can stop me from experiencing new and
better ways of achieving my objectives and constraints. One of the best
ways to find out which is to find a way of ignoring my fear where no risk
is involved - the process outcomes will help tell me whether my fear was
wisdom to honour or an obstacle to productive change.
So an improve your trading idea is:
- honour you 'negative' emotions as an indication of change needed,
- get past fear in a low risk way to see if fear was a good or bad guide.
You will then be trading more profitably with good feelings and so enjoying
the profits more.
Trading with good feelings, Ric.
www.traderscalm.com
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Find the Best Database Designers & Developers at Elance
Save Time & Money
Post your Project for FREE
http://us.click.yahoo.com/QdNj9C/e.zDAA/cosFAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|