Often when someone is on a winning streak, they will feel invincible. They will open several more trades as they think they will all be winners as well.
This over-confidence often results in massive losses
and sometimes erase all prior gains
People who do this experience a surge of emotions. To most traders, this figure is an expression of ones success.
As long as you have stop losses set, and are following trading rules, you are protected.
- Never invest more than what you're willing to lose
- Avoid trading with high leverage
- Control your risk with a stop loss
- Prepare for the worst
- Have realistic profit expectations
- Use take profits to secure profits
People like George Soros didn't become the biggest traders by chance. They developed strong technical analysis skills over years of research.
By understanding the markets through a technical perspective, you will naturally feel safer.
Studies show that those who sleep 7-8+ hours a night are better at managing their emotions.
In addition, those who eat healthier are generally faced with less negative emotions. Eat your greens! 🥦
Having a bad trading day? We've all had them.
Stop blaming yourself for things that happened in the past.
Instead, take a break, and focus on what lessons you learned, and what you'll do differently tomorrow.
Fear is the most destructive emotion. By fully understanding when we are scared, we have the ability to stop trading.
- Fast heartbeat
- Can't eat
- Irregular breathing
- Dry mouth
- Tense muscles
Don't trade when you're scared.
It would be very appreciated if you could all retweet and like the thread in order to help others properly manage their emotions as well.
Please share any tips you have for others below!