The most important trading emotion

Advertisement - External Link

The most important trading emotion

Trading is 90% psychology in my opinion. Although we might have a great system as traders, the way we execute our system is determined by our psychology and by our mental state.

The way we judge our performance and our trading are determined by our emotions.

You can see the best setup but if you are coming from a series of losses, you might hesitate or trade too small because you lack confidence. And if you just experienced a good run, you will often end up taking bad trades because you are over-confident. When you exit a profitable trade too soon or close a loss too late, emotions are the driving factors behind your decisions as well. And, of course, the big problems such as revenge trading, chasing or over-leveraging are all also a product of our emotions and our inability to manage them.

However, I believe that one specific trading emotion stands above all: Patience. Or better a lack of patience. In my latest podcast, I talked about why I believe that patience is the most important trading emotion / skill.

What do you think? Let me know in the comments below and I would love to hear your thoughts about patience and trading emotions in general.

 

 

If someone would ask me about the primary reason why people fail in trading then I'd say it is because
Edgewonk is much more than ‘just’ a regular trading journal. Most trading journals, especially the free alternatives on the web,
You have all probably heard that you need to treat trading as a business if you want to be successful.
Why do prices behave so differently around support and resistance levels? If you have been trading for a while you
Out of 5 trades, 4 ended up as scratch trades (very small losses or very small wins, averaging each other
The following article is a guest post from Larry W. from Options Strategies   There is a lot to learn

No Comments

Comments are closed.

Advertisement - External Link

Cookie Consent

This website uses cookies to give you the best experience. Agree by clicking the 'Accept' button.