Emotionless! That’s precisely what you need to be. It’s the only way to trade consistently profitable.
But what is that, and is it even possible? We are, after all, only human.
I remember when I first started to trade back in 2011. I thought that the market makers were a bunch of evil psychologists who could put you through every emotion there is.
Seriously every emotion in under 5 mins. If you’ve traded… you know exactly what I’m talking about.
And not just the negative emotions, they played with the positive emotions too:
Now I understand the market is driven by humans. Humans who are driven by emotions, and that’s why I have my…
My trading edge is that I can trade without emotion. It’s what keeps me consistently profitable in an entirely random market (which it is).
I trade in the now.
I don’t get attached to any of my trades, no matter how long they have been with me, and I’m not married to one strategy. Trading without emotion is my Holy Grail.
If your trading edge is that you can trade minus emotion. You will be the Elite Trader in the room. It means you follow your rules. You stick to your trading plan…to the letter…with ease.
This is why I have…
Patience and Discipline
Traders often ask me how they can be more patient, more disciplined in the markets. Well, it all starts with being emotionless when trading:
- It’s tough to be patient if you’re excited.
- How can you be disciplined when you are fearful that the market might reverse against you?
The first task you must complete before trading FX, or any Financial Instrument for that matter, is to…
Control your Emotions
How? It is not a simple question to answer. Many different methods and systems do work.
But the most significant emphasis will always be on you.
Are you willing to have an open mind?
Will you be willing to put hard work in?
Can you commit?
First, you must believe and understand that you are not your emotions. “I am angry” is a false statement that tries to trick your mind.
As it can never be true… Put yourself in front of a mirror, do it now if you can. Now put the biggest silliest grin on your face and keep it there. Right this second, how do you feel?
Keep the big silly grin and say, “I am angry”. Did you feel angry? Of course not.
From time to time, you will have an angry feeling, we are human, and we have emotions. However, what happens after that is of your choosing. Right then, at that moment after the feeling hits you.
You have a choice.
If you choose to stay angry, then you are “doing angry”. You are “being angry”. It is always your choice.
Next time you get that angry feeling, put a smile on your face and start laughing. Force the laugh if you have to…. “What anger?”
You’ve heard the ‘Traders Mindset”, “Trade Mindfully”, “Be a Robot”, buzz words. But what does that really mean?
They are all saying the same thing… Emotionless.
You need to be free of emotion the moment you decide you are trading. I previously covered the Negative Emotions so let’s now look at the positive emotions and why they are no better for you when you trade.
Traders often fall in love quickly and heavily, which leads them to get married very quickly, early on in their relationship with a Trade.
Refusing to see reason and to let go of the loss. The saying “Don’t marry a trade!” is telling you to be wary of the emotion of love.
You may have watched the Trade develop from an early stage. Perhaps spending hours preparing and analysing the chart. It may be your favourite chart. Just don’t fall in love with it!
Ok. I’m not sure where I’m going with this one, but I didn’t want to leave it out as it’s a positive emotion.
I will say that it’s hard to concentrate on the screen (and some guys/girls might get angry) while having sex. So, my advice would be not to trade and have sex at the same time.
This may also save you from injury. Haha
Hope has released nations and fortified countries. And Hope in the suitable arena is fantastic. It’s what drives you to do great things.
Hoping your Trade will turn around and save you’re a%$e is a fool’s game. Leave that emotion at the door.
Having unearned Faith in an online Guru or company just because he has had a good run for the last 3 months or turned $500 into $36,000…three years ago.
This is misplaced Faith. You have been warned.
Enthusiasm is the fuel for reaching your goals and is a must when writing your Trading Plan.
And is also the perfect emotion to help keep you going through hours of backtesting and forward testing.
Enthusiasm when trading…not so good.
Your Enthusiasm can get muddled with excitement and get you into a trade too early or into too many trades.
The emotion itself is admirable, and I am proud that it is one of my values and attributes.
Again, this is an emotion that must be earned, do not give it away unwisely.
Claiming loyalty to a company or person who continues to:
- Churn out strategy after strategy but fails to teach you the basics of how to control your emotions.
- Uses your emotions against.
This is misplaced loyalty.
They don’t want to teach you how to control your emotions because they use them to sell to you.
All advertising and sales strategies are based on emotion. We buy with emotion and back it up with logic.
Perfect for writing out your goals. But desire can cast a spell over your Logical mind, moving you away from probabilities and into the realm of Gambling.
We don’t gamble…
We Trade, remember.
If you are not yet sure of the difference, I would suggest that perhaps you are not yet ready to trade. An easy way to tell is to answer this one simple question.
Do you have a detailed written Trading Plan?
If your answer is no… then you, my friend, are Gambling.
Positive emotions are definitely better for you than negative emotions, there is no doubt. But living your life in your emotions, positive or negative, is not the way to live either.
If you live your life with negative emotions, they will poison you. There is scientific evidence to back this up, and an excellent site to visit is familydoctor.org.
And if you live your life with positive emotions, you will do one or more of the following:
- Fall in love with everyone you meet.
- Have sex with everyone you meet.
- Hope life will get better without taking action.
- Have misplaced Faith in the wrong people or wrong companies.
- Misunderstand Enthusiasm for excitement and get excited by everything.
- Give your loyalty to everyone you meet.
- Or you will desire everything you see, hear, smell, taste, or fantasise about.
I’ve taken these points to the extreme. But hopefully, now you understand that to live your life in your emotions, any emotions, is to not live in the moment.
The trick to a balanced life is to live in the now and be present. And a balanced life is the key to becoming a consistently profitable trader.
When you get a feeling, it is your subconscious communicating with you. It’s your job to learn what it’s saying.
Don’t attach yourself to that feeling. It is not who you are. Understand that it is a communication from your subconscious. Thank your subconscious for that communication.
Feel the feeling and let it go.
Preferably when you understand what is being communicated, you will act. The feeling will evaporate, and you can continue in the state of mind required for whatever task you have in hand.
Which for traders is very detailed and specific depending on what part of trading you are dealing with. This will all be covered in a future post, “Traders Tasks.”
What you should do right now!
If you are struggling to successfully extract consistent payments from the markets, then I do suggest that you take a look at my “Do It Yourself” Trading Course.
In this course I will personally coach you the necessary technical and psychological skills needed to be a successful Prop Forex Trader and create the life of your dreams, whatever they might be.