5 Tricks to Control your Emotions in Day Trading

Control your Emotions in Day Trading

5 Tricks to Control your Emotions in Day Trading

Day traders need to control their emotions. The slightest lapse in controlling your emotions will ruin your accumulated hard-earned profits overnight.

For instance, after having the several losses in a trading session, you are afraid of having the losing day. This fear spurs you to over-leverage and blows up your trading account with a single trade.

How many times have you blown up the trading account because you lost control of emotions?

Furthermore, having your emotions on a roller coaster every day is not sustainable.

Most day traders understand trading is a game of probabilities. We know that we should control emotions and stay detached from the results of each trade. We have also read dozens of trading maxims that sounds like these:

  1. Don’t be affected by fear and greed.
  2. Don’t marry your positions.

While these straightforward statements are great suggestions, they are of little practical value. It is because they do not show you the exact action to take when you are trading.You need to Control your Emotions in Day Trading,if you are trader.

Day trading needs focus. Day trading setups are fleeting. Hence, it is important for day traders to know exactly what to do to control their emotions during the trading. They do not have time to think about the uncertain statements.

Follow the 5-day trader’s tricks if you have problems in controlling your emotions.

5 Tricks to Control your Emotions in Day Trading

1. Take a Walk after Each Trade

Even if it is just for a minute.

Given the fast and furious nature of day trading, it is too easy to get trapped in the sea of emotions.

Walking away from your the trading screen is a deliberate break in your trading tempo. It is a physical action that you take to control in trading tempo. This simple act clears your mind and reminds you that you are in control.

The market does not drag you into the trade. Quite the opposite. You can walk away from the market anytime you want. You are in control.

2. Find out the Least Volatile Hour of the Trading Session

Read a book during the hour.

Most day trading strategies work best when the price action is volatile. Trying to trade when a congested market leads to failure. Anger follows. Then, your emotional dam is much broken.

The easiest solution is to take a break when the markets are going nowhere.

However, do not read anything to do with the trading. Trading books give you trading trick. You might be tempted to try those tricks immediately. Trading tricks, before becoming part of a consistent trading plan, are losing propositions.

3. Stop Trading after Three Consecutive Wins or Losses

Three successive wins make you feel like a super trader. You think that you cannot lose. You are powerful. You over-leverage and over-trade.

Three consecutive losses make you feel like a failure. You don’t want to fail. Your emotions explode. You revenge trade.

When a certain thing happens for three times in a row, it is tough not to get affected by it. Let’s avoid this problem altogether and stop trading after three consecutive wins or losses.

4. Don’t Look at Your Profit And Loss While You are Trading

If you follow the most critical trading rule and have a daily loss limit in the place, you are already protected from the severe losses. Hence, you do not need to check the profit and loss figure regularly.

Whenever you feel like peeping at profit and loss for the session, read your trading rules.

5. Ask Yourself

Fear is an intense and destructive emotion that the traders often encounter.

When you are watching your trades unfold, keep asking yourself: “Am I scared?”

At any time, if you answer “Yes”. Exit immediately.

Review your trading rules.

Reduce your trading size.

Repeat it.

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