Almost every experienced trader or beginner knows what “anger” trades are.
Every time when you get overwhelmed with your emotions, useless trades are done. Revenge and anger trades can destroy a forex trading account in a few minutes.
How to define what makes a trader emotional during trading and how to avoid self-destruction?
Emotional trades in forex are a usual phenomenon and when trader is out of control, the account is destroyed fast. Even if you apply reliable trading strategy and you are well-disciplined with good money management, you can easily become emotional after making bad choices, begin boosting size to make it back, moving stops, averaging down and making excuses to keep on trading looking for mirage opportunities.
When it comes to crazy trading, it is a serious problem. You do not even realize that you are doing this. So, you need to use the right technique to get out of this state.
Below there are some tips to stop the self-destruction before it started:
1. Take a Break
When you have experienced successive losses, you should quit trading for a day. Some traders even have a “punishment” that is assumed by a trading plan: had loss, no forex for a week! Market will not disappear and tomorrow have even more opportunities for you. Do not do anger trades, just take a breath and give yourself a break.
2. Shorten Size
Shorten the size of amount traded considerably. In such a way you will be able to distract your mind of trading for a while and become sensible again. Give yourself time and get back to the right size trading only when you are really ready.
3. Add Money You Didn’t Win
Put the amount equal to the winning trade you didn’t take in your forex account. When you see money in your account, it will make you feel better and take wise decisions.
4. Add Amount You Lost
If you experienced a loss, you can add to the amount you have lost back to the account. You will be surprised at how easy it can become normal again when you do not see your account with losses.
5. Use Visual Effects!
Create a poster or make a note which can remind you of not making unreasonable decisions after bad trades. The note will help you to stay sensible and take only the trades that you can completely understand and pass on all the rest.
6. Trade With Reason
Psychology is a critical factor that influences success or failure in trading. You should have the right psychological reasons to do trades.
7. Be Precise
You should be disciplined. Actually, you should become army disciplined. Bear in mind that emotions should have nothing to do with your decision taken as for the trades.
8. Confess and Talk It All Out
Confess about your losses to somebody nearby or even over the internet, a fellow trader or somebody who can understand your pain. Talking will free your mind from negative thoughts and will bring you back to real life.
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