to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets

To trade without emotional involvement. It is a necessity, and yet it is virtually impossible. Certain things in life just bring out emotion, like making decisions that effect your financial outlook. There are two things that make this uniquely harder for traders, than for non-traders. One is, we are likely to be more involved in our financial well-being than non-traders. Some people would even say our priorities are out of whack, and perhaps they are right. But nevertheless, that is the way we are, and if we weren't that way we wouldn't be traders. The second factor that makes emotionless trading very difficult is, this is likely to be our passion. We aren't singers, humanitarians (hopefully we do share our wealth), writers, politicians, spiritualists, we are traders, and are likely to be passionate about it. Many of us to be honest, love it. Love it like Pittsburgh loves their Steelers, irrational, all consuming, eats us up inside love it. And yet we know in our heart of hearts, or more importantly in our logical, rational part of our persona that we can't be emotional about it. Not be emotional about that which we love?? It is one of the hardest things in the world. That is why Doctor's don't treat family members.

One of the easiest traps to fall in, is to be angry at the markets. Like a new love, nothing can get your hackles up so much as that which you love. And when the markets fail you, that love has disappointed you. And when love disappoints rage can easily follow, just ask your teenager. It really fires that special spot in your belly. The problem with becoming angry at the markets, is you want to get back at it. But to traders the market is the epitome of unrequited love. The market has no emotion, you are fighting a losing battle, if you think you are going to get back at it. Because it doesn't care. The bad thing about this is that you are likely to trade horribly because of this emotion, if it goes unchecked. You will override your systems, you will trade without thought, you will in fact mirror the very thing you are trying to defeat. Emotion not thought out, which is what huge market swings are.

The second pitfall of anger is similar to the first, but perhaps not as devastating. You are not angry so much as you want to recoup your losses. Like a horse bettor who got skunked at the track,, and borrows money from Uncle Rich, you increase your bets, throw out money management principles and press to recoup. Financially this can be more devastating than anger all on its own. Often though it is the first step to the anger mentioned in the previous paragraph. The first curl in a spiraling out of control, that will likely break you in the end.

Anger isn't he only emotion the markets bring out in us. The opposite of anger is euphoria, everything has gone your way. Some trades have gone beyond your wildest expectations. And ca-ching the money is rolling in. Up go your trades, and you are on a roll like no other. You have figured it all out, and the market is yours. She loves you, just you, and will do what you want. Again out go the principles that got you there, and out goes your winning streak. And viola you have fallen into the anger trap. Or at least the recoup trap, you beg forgiveness, if the market will just return you to where you were before euphoria made you greedy. You confess your sins and beg for mercy. But again the market has no mercy, the market cares not for you.

In my own experience it is after this roller coaster, has cut my trading funds in half, that I begin again to trade without emotion. So how did I get to the point, where there never happens again? Where the market does not elicit anger or euphoria. Well I don't think you ever do. It is very hard not to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets

e love it. And yet we know in our heart of hearts, or more importantly in our logical, rational part of our persona that we can't be emotional about it. Not be emotional about that which we love?? It is one of the hardest things in the world. That is why Doctor's don't treat family members.

One of the easiest traps to fall in, is to be angry at the markets. Like a new love, nothing can get your hackles up so much as that which you love. And when the markets fail you, that love has disappointed you. And when love disappoints rage can easily follow, just ask your teenager. It really fires that special spot in your belly. The problem with becoming angry at the markets, is you want to get back at it. But to traders the market is the epitome of unrequited love. The market has no emotion, you are fighting a losing battle, if you think you are going to get back at it. Because it doesn't care. The bad thing about this is that you are likely to trade horribly because of this emotion, if it goes unchecked. You will override your systems, you will trade without thought, you will in fact mirror the very thing you are trying to defeat. Emotion not thought out, which is what huge market swings are.

The second pitfall of anger is similar to the first, but perhaps not as devastating. You are not angry so much as you want to recoup your losses. Like a horse bettor who got skunked at the track,, and borrows money from Uncle Rich, you increase your bets, throw out money management principles and press to recoup. Financially this can be more devastating than anger all on its own. Often though it is the first step to the anger mentioned in the previous paragraph. The first curl in a spiraling out of control, that will likely break you in the end.

Anger isn't he only emotion the markets bring out in us. The opposite of anger is euphoria, everything has gone your way. Some trades have gone beyond your wildest expectations. And ca-ching the money is rolling in. Up go your trades, and you are on a roll like no other. You have figured it all out, and the market is yours. She loves you, just you, and will do what you want. Again out go the principles that got you there, and out goes your winning streak. And viola you have fallen into the anger trap. Or at least the recoup trap, you beg forgiveness, if the market will just return you to where you were before euphoria made you greedy. You confess your sins and beg for mercy. But again the market has no mercy, the market cares not for you.

In my own experience it is after this roller coaster, has cut my trading funds in half, that I begin again to trade without emotion. So how did I get to the point, where there never happens again? Where the market does not elicit anger or euphoria. Well I don't think you ever do. It is very hard not to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets

are likely to trade horribly because of this emotion, if it goes unchecked. You will override your systems, you will trade without thought, you will in fact mirror the very thing you are trying to defeat. Emotion not thought out, which is what huge market swings are.

The second pitfall of anger is similar to the first, but perhaps not as devastating. You are not angry so much as you want to recoup your losses. Like a horse bettor who got skunked at the track,, and borrows money from Uncle Rich, you increase your bets, throw out money management principles and press to recoup. Financially this can be more devastating than anger all on its own. Often though it is the first step to the anger mentioned in the previous paragraph. The first curl in a spiraling out of control, that will likely break you in the end.

Anger isn't he only emotion the markets bring out in us. The opposite of anger is euphoria, everything has gone your way. Some trades have gone beyond your wildest expectations. And ca-ching the money is rolling in. Up go your trades, and you are on a roll like no other. You have figured it all out, and the market is yours. She loves you, just you, and will do what you want. Again out go the principles that got you there, and out goes your winning streak. And viola you have fallen into the anger trap. Or at least the recoup trap, you beg forgiveness, if the market will just return you to where you were before euphoria made you greedy. You confess your sins and beg for mercy. But again the market has no mercy, the market cares not for you.

In my own experience it is after this roller coaster, has cut my trading funds in half, that I begin again to trade without emotion. So how did I get to the point, where there never happens again? Where the market does not elicit anger or euphoria. Well I don't think you ever do. It is very hard not to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets

ur way. Some trades have gone beyond your wildest expectations. And ca-ching the money is rolling in. Up go your trades, and you are on a roll like no other. You have figured it all out, and the market is yours. She loves you, just you, and will do what you want. Again out go the principles that got you there, and out goes your winning streak. And viola you have fallen into the anger trap. Or at least the recoup trap, you beg forgiveness, if the market will just return you to where you were before euphoria made you greedy. You confess your sins and beg for mercy. But again the market has no mercy, the market cares not for you.

In my own experience it is after this roller coaster, has cut my trading funds in half, that I begin again to trade without emotion. So how did I get to the point, where there never happens again? Where the market does not elicit anger or euphoria. Well I don't think you ever do. It is very hard not to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets

to have emotions when you get pummeled or a positions breaks to the upside wildly. So what do you do?

You admit it, you acknowledge it, you are aware of it. You say ,yes that just ticks me off, why would that trade do that. And you go form there. You decide what to do, if anything after you acknowledge your emotions. You stick to your trading rules. You can then go back and learn from the event. Which is the real value of mistakes. You can analyze what went wrong, compare it to what has gone right in the past. Perhaps change your rules, perhaps accept that things are going to go wrong in the game of trading. And that is the price you pay for the right trades. But you NEVER make a trade based on emotion.

You can still love the market, the game of trading. I do, and then I hate it too. I think about my sailboat beckoning, and want to bag the whole thing. And that day will come. But the difference is I love the markets from a distance, from a reflection, I love it as an accomplishment of man. It has been a huge part of my adult life, and has shown me every aspect of human emotion, and has taught me one very, very nice lesson, patience.