Mental Accountability and Taking Responsibility.
We all want to make a lot of money, and fast, but we tend to forget how emotions and our mental state play a big role in how we trade.
How in tune are you with your emotions?
Effective trading means understanding one’s own emotions and how that translates to knowing when to trade and when not to trade. Self-destructive behavior can manifest through the market in the way you trade and can ultimately cause you to lose a lot of money.
Luckily, you can avoid emotional trading by checking your mood while trading. Before you sit down to being trading, take a few minutes to assess your own emotions and how you feel. Remember, you are in charge of your own trading. No one is forcing you to take the trade, you are responsible for your own success or failure as a trader.
Keep in mind to always be kind to yourself – this is how you handle responsibility. Everyone makes mistakes and has a bad trade, but it is how you handle it that makes you an effective trader. That is precisely why you need to remind yourself to be aware of your emotions that emerge while trading. Negative emotions are an early warning signal that you need to take a break from trading to cool down and relax. So, be kind to yourself or you can end up spiraling down an emotional cycle. Learn effective ways to deal with your emotions and how to pick up early warning signals.
Ryan Mowatt, Trading Performance Coach