You are sitting there freaking out because a trade that you jumped in is not going in the directed you were hoping for. Now you spend your entire day waiting for your numbers to go back into the green. Heart racing, nerves rattled..possibly hyperventilating. I think you get the idea. Has this happened to you before? Are you trying to figure out how to avoid getting emotional while trading? Well keep reading!
Know what you are doing
One of the first things that you should realize is that there should be no guessing when trading. When you start to learn the fundamentals, how to read chart, candlesticks and monitor price action, you already know what the expectation should be for your trade. And this is before you jump into the trade!
Trading is a skill and you should be constantly working to master that skill so that you do not freak out at slight changes in price movement.
Do not risk more than what you are willing to lose
You do not want to pour your life savings into a risky trade. And you have to always keep in the back of your mind that there is always the possibility of losing money…even if the probability is low. So, if you cannot afford to lose that money, do not risk it. Once you set your mind that way, when you decide to jump into a trade, your emotions will not get the best of you if you start to lose a little bit.
Have a support system
Make sure that you have an outlet to vent your frustrations to. A great, supportive community that I am a part of is Ross Investment Strategies Community. A supportive community can remind you that you are not alone in your frustrations. It will also keep you in communication with like-minded people that will continue to encourage you in your trading journey.
Having a support system will also give you a way to obtain guidance if you seem to be making some bad choices in your trading. You can learn what you may need to change to make better decisions.
You are not alone
Try to remember that you are definitely not alone. There are millions of people that are actively trading during the week dealing with some of the same struggles you may be dealing with. If you have lost money, rest assured that someone else has as well (and probably A LOT more)! Knowing that things happen to everyone in the trading world can help to keep your mind level and to not go overboard in your thinking.
Hopefully, these few tips will help you when starting your journey into trading. And always remember that you can reach out to me with any questions, concerns or just to vent!
