When a situation arises where we have to control our emotions in trading, we
mostly lose control over our emotions and do things that shouldn’t be done.

Do you really want to know how we can control our emotions when we are in
trade or preparing to take a trade?

Yes, there are ways, through applying and practicing, that we can achieve that
sort of composure that will allow us to control our emotions.

Follow the five most proven ways to eliminate emotions while trading.

Things will only work if we ardently follow things that are given to us, and
if it comes to our emotions, it is the most difficult part for any human to
control them with ease.

There are some who have really mastered it, but they are successful because
they did the hard work honestly.
Below are five ways to control your emotions:.

5. Making rules

Yes, you are right. Making certain rules regarding your trading style and
decisions will help us a lot to control our emotions.

Now, you might be wondering what rules should be made that will help control
your emotions regarding trading.

There are certain rules that should be followed. It will be better if you make
your own rules, which will be easier for you to follow. But still, if you are
confused, then follow the rules, which most other traders follow, and they
are:

* They trade only on certain
conditions if fulfilled by the chart, and those conditions vary from traders
to traders, as there are certain traders who trade on certain formations of
candlesticks.

And there are others who trade only on breakouts and breakdowns, and there are
others who follow some different things, so that’s why the rules should be
made by us, which will make us comfortable and which we can follow with ease.

If we make rules, they become stuck in our minds, and it becomes difficult to
break them. As rules are things that are in every part of life, whether in
trading or outside trading, wherever they are, they are really helpful in
smoothing our difficulties and overcoming them.

4. Mediatation

When it comes to our difficulties, emotions, and anything that is physical or
mental, there is only one remedy to deal with all those things, and that is
meditation.

It is something that increases our thinking ability and decreases the ongoing
emotions inside us.

Meditation gives traders the power to handle everything, even trading. A
trader who does meditation is likely to get the most benefit from their
trading journey.

Meditation relaxes our mind and increases our thought process, which helps in
trading by making us see things that are happening in the chart, which helps
us analyze them quickly to make our decisions on that basis.

3. FOMO (handling it with patience)

FOMO stands for “fear of missing out.” The most common reason we are talking about emotions in trading.

It is likely to get infected by traders who are new and even by experienced
ones. It is something that is very difficult to overcome, but if you have
followed the above two ways, then you have already tackled 50% of it.

The fear that makes the traders buy or sell early is because they think they
will not get the opportunity later to buy or sell at that price.

It seems to be simple, but in fact, it has destroyed the lives and assets of
many traders.

To overcome and achieve it, follow these two things, which are:

Follow your own rules and never break them, whether they satisfy you or not.

When there is talk about trading, becoming a machine would be better; don’t
burden your thoughts with emotions.

2. Controlled trading with money management

Trading should always be done in a controlled way, not in any way that is
uncontrolled.

Then there are people who will definitely be asked how to do it in a
controlled way.

Trading in a controlled way is not difficult if we do it with money
management.

Money management is something that will help us to lessen our losses and
increase our chances of widening our profit margin in comparison to our
losses.

For example, if we have put 1 point to stoploss, then our target should always
be 1 or 2 or more than it, but not less than it.

In one line, just remember that “the target should always be greater than stoploss.”.

1. Discipline

After reading the above five ways, we should be disciplined to follow them.

In trading, as the big traders say, there is only one thing that can lessen
our losses: our discipline and nothing else.

Discipline in every sector is important if we want to ease the work and lessen
our emotions, as it makes things more automated.

Follow the 3 things to show discipline in trading, and they are

# Show discipline to stoploss and cut the trade as soon as the stoploss
hits; don’t try to widen it if it hits.

# Don’t overtrade.

# Discipline yourselves with money management.

last thought

Emotions can be smoothly handled if the above-mentioned five ways are followed
with ardent discipline.

It makes a trader more strong when it is followed by discipline.

Never mess with your emotions with too many things; be simple and work
according to the rules and strategies you have made. So why wait? Go and trade
with discipline.

FAQs

A frequently asked question regarding controlling emotions in trading.

• [accordion]
  • What is the panacea for handling emotions?
    • Nothing but your discipline
  • Does emotion ride us to more losses than anything else?
    • yes
  • How do you control emotions easily?
    • just by following the above-mentioned five ways