Trading in the zone requires intense concentration and focus, but it’s difficult to maintain this stance when you are overly emotional. It’s vital to stay calm and in control. The better you can handle your emotions, the more profits you’ll take home.
The capacity to perform under pressure has everything to do with emotion. As a trader, you are dealing with emotions whether you like it or not. Most traders set themselves up for losing long before they actually take a loss. They enter the ring with fear already tugging at their mind. First they try to ignore it by focusing on information and data – lots and lots of data. But that doesn’t work. Then they try to resist it. And the more they resist the more the fear persists. They even try to visualize achieving success and conquering their fear, but the fear grows into self-doubt that begins to contaminate their decision-making mind. Their trading mind then crumbles and their trading performance is comprised. What started out as a small snowball turned into an emotional avalanche. That’s the end result of trying to hide emotions behind data.
Develop emotional intelligence
Being aware of your emotions and what triggers them is the first step in building emotional intelligence. When you know how you’re feeling and understand how those feelings influence how you view risk, you will realise that you can control them.
Your ability to find inner balance will help you make sound decisions and manage your mind during market turbulence. All in all, sensible trading can happen only if you can control your feelings.
Many trading days are full of chaos and stress. Sometimes we are in a bad mood, while at other times, the markets don’t seem to cooperate with our trading plans. It’s natural to crack under the pressure. But successful traders make trades in a carefree, relaxed, and focused manner. They don’t put unnecessary pressure on themselves. They don’t believe that they must succeed on any single trade but keep their eye on the big picture. They don’t believe they need to be right. They don’t impose their will on the market. And they don’t try to predict the future behaviour of the market. Instead, they objectively observe market conditions, make a detailed plan of attack, and let the market take them where it wants them to go.
Reach for the “off switch”
When you get caught up in a trading storm, one approach is to escape the situation. Take some time away from the market, grab some coffee, walk your dog, cook a quick meal. Get off the emotional rollercoaster and come back with a clear mind and fresh perspective. A clear mind is always a more rational mind.
1. Stick with your trading plan and turn off the news. Stop watching new channel, Social Media strict NO in such time. Rumor mongering at its highest. Just stick to your plan and trade with strict SL
2. Manage your emotions. It’s virtually impossible to erase fear, panic, and greed, especially when it comes to money. It helps to have a written plan that you can refer to during times of market crisis—something that can help you manage your emotions and keep a level head.
3.Consider Altering Your Trading Style, Technique, Duration, or Indicators in Volatile Markets — As Volatility increase market moves very fast, in such scenarios adapt quickly be fast in entering and exiting your positions.
4. Sometimes the Best Trade is No Trade
5. Do not get caught in the mindset of “I just missed the best opportunity” – there will always be another profit opportunity,
6. Don’t force trades. Don’t chase prices that have run away from you. Don’t trade just to trade.
Additionally, don’t get overconfident and “double up” when things are going well. Too often, when we get on a very good streak in one of our trade recommendation programs, we see and hear of clients who are increasing the amount in each trade by a big amount.
The trader has to take the responsibility to become the designer of the emotions and mind that he or she brings to the performance of trading. This is the step that eludes aspiring traders. They keep waiting for things to change outside of themselves. The change has to come from the inside out. The mind you brought, with its focus on controlling outcome, is not prepared for the challenges of trading. But within you lies the capacity to re-program the brain/mind for probability management (instead of survival management). The tools are there. You have to be ready and willing to pick them up and use them to change the mind. Change the mind from a focus on winning in the moment to a focus on process in the moment. The potential is there. The question is: Are you ready and willing to claim the potential of your performance?