What emotions do you encounter the most during trading?

smithanderson

Active member
Emotions have the biggest role to play in trading because they impact our trading decisions. Most of us are aware of greed that lingers us in "hope" so that we can sell the currency pair higher. However, it doesn't always work in our favor, and we may end up risking our investments. Despite the outcome, we should never neglect emotions. Some of the emotions I feel during trading are-
1) Fear:
Everyone experiences fear while trading. We fear losing our money or not trading well. However, in trading, fear hinders our progress.
2) Anger:
It is common to experience anger after a loss.
3) Happiness/ Sadness:
I remember the first trade I won; the feeling was euphoric. And just the opposite in the very next trade.
4) Hope:
We trade because we hope that it will make us a fortune. And some of us keep unrealistic expectations.
5) Greed:
We all desire to make more money, but we forget the risks. As traders, we should develop the mindset on how much money I will lose if I take a wrong step. This is definitely hard to incorporate, but with a right trading goal, it can be avoided.

Would you like to add more to the list?
 
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Yeah, we can all relate to this post! Disappointment and frustration can also be added to the list. On seeing a trade going in the opposite direction as they had analysed, some traders feel disappointed while others get frustrated. It depends on how you take your losses and how they affect you.
 
Hope is that one emotion which most of us feel is the least harmful but it actually makes a trader over- confident and doesn't let them see the impending danger. Traders often take unnecessary risk only because they "hope" that things will turn out in their favor.
 
Not much we can do with emotions, we're all humans after all and that's why it's important to have a trading plan so your trading plan actually controls your emotions.
 
I felt butterflies in my stomach on the day I shifted from a demo account to a live trading account. I was unable to perform a single trade throughout the day due to the fear of losing money. I feel anxious at the time of entering a trade due to the dilemma in my mind to date. However, I have learned to gain control over my greed after a few losses.
 
The most important thing to do as a trader is to develop the emotional side of your trading, so that you can remain in control at all times. Trading with emotions will only make you lose money.
 
Anger and greed often make you take steps that you shouldn’t. Gain experience with small risks and increase it gradually so that you have a clear understanding of what you are doing. Also, learn to manage risk and do not use a broker that puts any limits on sl and tp.
 
Yeah, we can all relate to this post! Disappointment and frustration can also be added to the list. On seeing a trade going in the opposite direction as they had analysed, some traders feel disappointed while others get frustrated. It depends on how you take your losses and how they affect you.
Thank you. I think these two emotions can perfectly come under fear and anger. After losing a series of trades some traders get so disappointed and feel at a loss of confidence, while some get so frustrated that they start over-trading.
 
I have to admit that hope is a big emotion that gets us into trading. We read people talking about making profits through forex trading and hope that it would be a great career for us as well. But when we actually start to trade, the reality looks different.
 
We can definitely control emotions by automating our trades but EAs too have their downsides. I believe it’s better to work on our emotions for long term success.
Methods without downsides doesn't exist. That is why I am creating portfolio from many EA's, on different time frames, instruments, setup up custom money management to decrease risk.
 
I felt butterflies in my stomach on the day I shifted from a demo account to a live trading account. I was unable to perform a single trade throughout the day due to the fear of losing money. I feel anxious at the time of entering a trade due to the dilemma in my mind to date. However, I have learned to gain control over my greed after a few losses.
You learned to take control over your greed or fear?
Fear can actually freeze a trader from taking any action. On the other hand, greed forces you to act irrationally just with the goal to earn more and more profits.
 
Controlling your emotions during trading is very important. This will give a trader an edge over market conditions. There are several emotions that come up during trading, but the biggest ones are greed and fear.
 
Controlling your emotions during trading is very important. This will give a trader an edge over market conditions. There are several emotions that come up during trading, but the biggest ones are greed and fear.
Any emotion if not controlled at the right moment can create problems, because they cloud your judgement so badly that you can’t take any logical action.
 
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