5DAYTRADER’

STRI
CKSTOCONTROLYOUR
EMOTI
ONS

Daytradersmustcontrolt
heiremoti
ons.Thesl
ight
est
l
apsei ncontr
oll
i
ngy ouremotionswil
lrui
nyour
accumulatedhard-
earnedprofi
tsover
night.

Forinstance,af
terhavi
ngsev er
allossesi
nat r
adi
ng
session,youareafrai
dofhav i
ngal osi
ngday.Thi
sfear
spursy outoover-l
ever
ageandbl owupy ourt
radi
ng
accountwi t
hasi ngl
etrade.

Howmanyt i
meshav eyoubl
ownupyourtr
adi
ngaccount
becausey
oulostcontr
olofy
ouremot
ions?

Furt
hermore,
havingyouremot
ionsonar
oll
ercoast
er
ever
ydayisnotsustai
nabl
e.

dayt r
ader sunder st
andthattr
adi
ngisagameof
probabil
it
ies.Weknowt hatweshouldcontrol
our
emot i
onsandst aydetachedfr
om theresul
tsofeach
tr
ade.Wehav ealsoreaddozensoftradi
ngmaximsthat
soundliket hese.

1.Don’
tmar
ryy
ourposi
ti
ons.

2.Don’
tbeaf
fect
edbyf
earandgr
eed.

3.Bei
nthezone.

Whilethesestrai
ghtf
orwardstat
ement sar
egreat
reminders,t
heyareoflit
tl
epracti
calval
ue.Thi
sisbecause
theydonotshowy outheexactacti
ontotakewhenyou
areactuall
ytradi
ng.
Daytradingrequi
resfocus.Daytradi ngsetupsarefl
eeti
ng.
Hence,itiscruci
alf
ordayt rader
st oknowexact lywhatto
dotocont rolt
hei
remot i
onswhi l
et rading.Theydonot
havetimet oponderonv aguestatement s.

Whatcany
oudoexact
lyt
ocont
rol
youremot
ions?

Fol
lowthesef
ivedayt
rader
’st
ri
cksi
fyouhav
epr
obl
ems
contr
oll
i
ngyouremoti
ons.

1.TAKEAWALKAFTEREACHTRADE.

Ev
eni
fit
’sj
ustf
orami
nut
e.

Giventhef
astandfuri
ousnatur
eofdaytr
ading,
iti
stoo
easytogettr
appedintheseaofemoti
ons.

Walkingawayfrom yourtr
adingscr
eenisadel i
ber
ate
breakinyourt
radingtempo.Iti
saphysicalacti
onthatyou
taketocontr
olyourtradi
ngtempo.Thi
ssi mpleactclear
s
yourmindandr emindsyouthatyouar
ei ncontr
ol.

marketdoesnotdragyouint
oatr
ade.Qui
tet
heopposi
te.
Youcanwalkawayf r
om t
hemarketanyt
imeyouwant
.
Youarei
ncontrol
.

2.FI
NDOUTTHELEASTVOLATI
LEHOUROFTHE
TRADINGSESSI
ON.

Readabookdur
ingt
hathour
.

Mostdayt
radingst
rat
egi
esworkbestwhenpr
iceact
ioni
s
vol
ati
l
e.Tr
yingtotr
adewhenacongest
edmarketl
eadsto
fr
ustr
ati
on.Angerfol
l
ows.Then,
youremot
ional
dam i
s
pret
tymuchbroken.

Theeasi
estsol
uti
oni
stakeabr
eakwhent
hemar
ket
sar
e
goi
ngnowhere.

Plus,y
ougett
oreadt
hel
atestnov
elf
rom y
ourf
avour
it
e
author
.

Howev er,donotreadany t
hingtodowi t
ht r
ading.Tradi
ng
booksgivey outradi
ngideas.Youmi ghtbet emptedtotry
thoseideasimmedi at
ely.Tradi
ngideas,beforebecoming
partofaconsistenttr
adingplan,ar
elosingpr oposi
ti
ons.

3.STOPTRADI
NGAFTERTHREECONSECUTI
VEWI
NSOR
LOSSES.

Threeconsecut
ivewi
nsmakey oufeel
li
keasupert rader
.
Youthinkthaty
oucannotl
ose.Youareinv
inci
ble.You
over-
lever
ageandover
-t
rade.

Threeconsecut
ivel
ossesmakeyoufeell
ikealoser.You
don’twantt
olose.Youremot
ionsex
plode.Yourevenge
tr
ade.

Whenacer tai
neventhappensforthreeti
mesinar ow,i
tis
toughnottogetaff
ectedbyit
.Let’sevadethi
sproblem
alt
ogetherandst
opt r
adingaf
terthreeconsecut
ivewins
orlosses.

4.DON’
TLOOKATYOURPROFI
TANDLOSSWHI
LEYOU
ARETRADI
NG.
Icanhar dl
ythi
nkofaf i
gurethatcausesagr eatersurgeof
emot i
onsthanyourprofi
tandlossf igure.Tomanyt r
aders,
theprofi
tandlossfi
gureisanexpr essionoft heirsel
f-
worth.(Nope.Youar
egr eatert
hanj usty ourprofi
tand
l
oss.)

Ify
ouf oll
owt hemosti mport
antt
radingrul
eandhav ea
dai
lylosslimiti
nplace,youareal
readyprotect
edfrom
sever
el osses.Hence,youdonotneedt ocheckyourprof
it
andlossf i
gureconstantl
y.

Wheneveryoufeel
li
kepeepi
ngatyourpr
ofi
tandl
ossf
or
t
hesession,r
eadyourt
radi
ngrul
es.

5.ASKYOURSELF:
“AM ISCARED?
”

Feari
sanintenseanddest
ruct
iveemot
iont
hatt
rader
s
oft
enencounter.

1.Whenyouarewatchi
ngy
ourt
radesunf
old,
keepaski
ng
your
sel
f:“
Am Iscar
ed?”

2.Atanypoi
nt,
ify
ouanswer“
Yes”
.Exi
timmedi
atel
y.

3.Rev
iewy
ourt
radi
ngr
ules.

4.Reducey
ourt
radi
ngsi
ze.

5.Repeat
.

MASTERYOUREMOTI
ONSFORLONG-
TERM DAY
TRADI
NGSUCCESS

Cont
rol
overy
ouremot
ionsdoesnotgi
vey
ouat
radi
ng
edge.Thisisbecauseyourtr
adi
ngedgedependsonyour
tr
adingmet hod.However,
youneedt omast
eryour
emot i
onsforlong-
ter
mt r
adingsuccess.

Wit
ht hefi
vetr
icksabove,
yourner
veswi
l
lgetasl
owboat
cr
uiseinst
eadofar ol
l
ercoast
erri
de.

Learni
ngt ocontroly
ouremot ionsrequir
espersistence.
Overtime,youwi l
lstar
ttoperceivethebenefit
sofkeeping
youremot i
onsundercont r
ol.Thesebenef i
tsserveas
posit
iverei
nforcementtoy ourbrai
nt oconti
nuegood
emot i
onalhabi
t sandresponses.

I
ttakest
ime.Buti
fyouper
sist
,itdoesgeteasi
er.

ByGal
enWoods