Importance of emotion while trading

[mindrust]

Trading is all about risk management. If you are taking the risks which you shouldn’t be taking, it will make you nervous and the more nervous you are, the more mistakes you will make. In the end these bad trades will cost you money. You need to be emotionless like an npc while trading. It is the only way to win this game. Remember most people use algo-bots and that means you are not even trading with real people. You are competing with bots. These bots don’t have any emotions and you should be exactly like them. If you can’t do this, you shouldn’t be trading or should use bots just like everyone else.

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[Lakai01]

[...]
Remember most people use algo-bots and that means you are not even trading with real people. You are competing with bots. These bots don’t have any emotions and you should be exactly like them. If you can’t do this, you shouldn’t be trading or should use bots just like everyone else.

Nowadays, I would advise any newcomer to immediately get involved with bots and have a bot execute the trades (after an extended period of paper trades, of course). By keeping the emotions completely out of the trades, the chances of success are significantly higher, especially for newcomers. Otherwise you will quickly find yourself in a situation where panic dominates your own trades ... how that ends I think we all know.

There are also very good bots on the market, both free and paid. They are not particularly difficult to learn and can now be supplied with a variety of different (tested!) Strategies.

[Hamza2424]

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.

TBH, this is one of the most widely covered topics here in this section, with almost every perspective. I want to comment on this particular point where I want to say greed control is important but here a psychological barriers between fear and greed which most of the time motivate you to book the profits earlier, compared to the real potential.

Put yourself in a real-time situation where you've taken a trade without stop loss, and take profit and now the market is going against your trade, in a 10% loss you show patience and the market continues to move against you 20% loss still holds the trade, now the next to trade you bear the pressure of loss but when the market goes in favor even on the 2% to 5% profit on the trade most of the time you try to book here it is what we call FOMO.

You should wait for the true potential at least semantically you need to be greedy, and this greed may vary in accordance with market developments.

[Franctoshi]

5. Stay calm and try to control temporary emotions.

I think the most crucial thing for a trader is to truly understand what you're doing. When you have a solid grasp of your strategy, your emotions are less likely to take the wheel. You're confident that your approach will lead to profits, which lets you stay calm while you work. Trading is a mental game, and once emotions get involved, they can cloud your judgment, leading to regrets later on.

Exactly, Understanding what you are doing is basically the key to emotional dealing, this brings my memory back to when I was a newbie trader, I was trading with emotions because I had no proper knowledge about trading, exited trades when the market was on correction, and the worst of it was that I was using high leverage and a little bit price move above my entry point I'm already on huge lose and emotion already come into play.

To manage emotion don't trade with money you can't afford to lose.
Stop using high leverage or lot size and manage risk.

[famososMuertos]

Any good advice always works, it doesn't hurt, what can hurt is not understanding your emotional capacity and the attitudes to carry out that work, it's that simple, sometimes it's not about emotional strength, it's just that it's not for You, it's that simple, commerce has two ways of approaching it, the experience itself of doing commerce for individual needs and based on that experience, entering the niche as a merchant,

There are people who want to dedicate themselves to commerce and never have a previous record of experience at the user or client level, then have the experience as a user and enter a world that you can identify that is made for you.

The emotional factor is a key that helps you perform in many areas, so before favoring the emotional experience by reading some advice you must train it with a lot of practice, it is a fallacy for example to say,  "you do not look at the asset at every moment," ok, that's how it is, then, activate a notification that tells you the price that interests you, comeon, this it easy.

The example that I like the most in the emotional comparison is a marathon, the marathon is not a race, races can start with 10km, 25km and even 1.5km, etc. A marathon is 42 km, although you run it, just like in the 10km or 1.5km, the emotional degree is different, so, you become an expert in where you feel best after trying it. Trading is the same, there are many variants of trading in which you need different emotional approaches.

In fact, "*I would tell anyone to try everything that OP does not recommend doing, that will give you experience, your emotions adapt, and mistakes help you improve your emotional skills.*"

^{"*"I'm giving a figurative meaning here, even sarcastic, thank you. And it's not investment advice"*"
Km=kilometres}

[Hamza2424]

To manage emotion don't trade with money you can't afford to lose.
Stop using high leverage or lot size and manage risk.

That's not enough, whether it's extra money or not, money and emotions can be taken care of with proper risk management and execution.

Not only stop using the leverage form for a long time I used to endorse in my posts that the newbies should completely avoid leverage trading because it seems attractive in profits but in reality, it's not. A newbie can easily get trapped by the market even while moving sideways in leverage trading. Better learn and experience the Sopt market. It's not less rewarding if you're a disciplined person.

[Issa56]

It's easy to just compile a list and post it here even if you don't know much about trading, so I will like to ask you one question, are you a professional trader? If you are not a professional trader, you shouldn't give advice about trading. We all know money is involved, so you have to be very careful. If you don't have experience, don't give advice on how to trade. I went through your posting history, and I can only see the bounty report and a few posts on you local board.

Here are some ways to control these emotions:

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.

You want people to start thinking they will become poor after investing? or do you want to become poor after investing? I agree with the first statement that you made, don't expect too much profit, even when the profit is small, always take your profit. You can't invest a small amount and expect to be rich within a short period of time, but that doesn't mean you shouldn't expect to be rich after investing a reasonable amount.

3. Avoid revisiting a coin after investing. You place a sell order with a specific target.

After some people notice a slight increase in price, they will end up selling their coin, so I also recommend that when investing, don't check your investment often since the investment will be for a long time. You can't just login once in a while to monitor your investment.

[kingvirtus09]

Here are some ways to control these emotions:

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.

This part is, most of the time, the reason why most newbies enter this field of business. Because, if we look at it, there really is no other reason.
In my opinion, it is a given that we will actually make a profit here, and that is also the aim of Bitcoin and why it was created.

But we should also consider that it will not be easy to make and get the profit we desire and expect. It's better to know the right thing so that we won't be disappointed in the end, because if we do this, for sure profit will follow willingly.

[blockman]

Simple as taking profit is being forgotten by many due to the emotion as they trade. Never ignore that feeling when you should take profit and it's together with not being greedy. When you're not greedy and you're making some decent money through your trades, you'll have a good thinking and mindset that what's enough is enough. But when you're greedy and you're making but you're not satisfied from it, you're not also going to recognize how good you are and you'll mostly think that there's something wrong with you.

[sheenshane]

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.

The most important of all is this.
In trading, we shouldn't only look after the profit, sometimes we encounter failures and experience losses that should we learn in the future not to happen again.

Trading isn't all about gaining profit, it's also about gaining knowledge, so losses are a part of it in order to learn from those mistakes.
So don't forget stop-loss as always be in your plan.

[Pandu Geddon]

Simple as taking profit is being forgotten by many due to the emotion as they trade. Never ignore that feeling when you should take profit and it's together with not being greedy. When you're not greedy and you're making some decent money through your trades, you'll have a good thinking and mindset that what's enough is enough. But when you're greedy and you're making but you're not satisfied from it, you're not also going to recognize how good you are and you'll mostly think that there's something wrong with you.

because sometimes it is difficult for a trader and we often forget to stop and exit the trade when we have made a profit. it means the trade was not planned well enough, and being greedy will only result in us possibly losing.
I experienced that myself in the past. day trading with some profits, but I felt the market was good and I continued to enter some other assets to trade. in fact it actually provides losses when we think that all assets will produce the same profit when the market is in good conditions.

[wajik-tempe]

Trading is all about risk management. If you are taking the risks which you shouldn’t be taking, it will make you nervous and the more nervous you are, the more mistakes you will make. In the end these bad trades will cost you money. You need to be emotionless like an npc while trading. It is the only way to win this game. Remember most people use algo-bots and that means you are not even trading with real people. You are competing with bots. These bots don’t have any emotions and you should be exactly like them. If you can’t do this, you shouldn’t be trading or should use bots just like everyone else.

To some extent, emotions may be a helpful source of drive and awareness. They can motivate traders to keep educated about market circumstances and take prudent risks, which can result in profit. Excessive emotions, such as greed and fear, might, nevertheless, be harmful. The trick is to use emotions to increase attentiveness and enthusiasm while without allowing them to cloud judgment. Trading is a smart art of combining reasonable risks with the appropriate attitude, not just being heartless like a computer.

[CODE200]

Here are some ways to control these emotions:

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.
2. After you have invested in a coin, you find that for some reason it has gone down in the market. At this time, without being emotional, you first look at the condition of the token, what condition it is in, and then take a decision with a cool head.
3. Avoid revisiting a coin after investing. You place a sell order with a specific target.
4. Trade according to market conditions. Don't immediately invest in someone's words.
5. Stay calm and try to control temporary emotions.

You can add "a profit is a profit," or, in short, don't be too greedy. I personally experienced this and learned my lesson in a hard way. What I mean is that in the past, when I started trading crypto, I couldn't get satisfied with a little earning; I wanted more, and because of that, I kept losing trades and still didn't stop because I wanted to chase my losses. Little do I know, I have become too greedy, resulting in more losses than earnings. That's why it's important to also control your greed; don't even think about being greedy. All you've stated is true and should be followed. Let's see more of the people in this forum to see what they will add to your list. I know many here experience a lot of stuff in terms of trading, and I'm talking about the negative happenings. But we are not perfect, so sometimes we still repeat the wrong deed. Maybe we just have to set boundaries to control ourselves.

I couldn't agree more! A profit is a profit, and no profit is too little or too much. Sometimes, we do not recognize profits that we consider as "too little" because we are expecting for too much. And you're right, I have read several replies in different threads which tells that people who are often controlled by their emotions tends to result to a major loss and being greedy is one of the major factors for this. I believe that we cannot completely detach ourselves from greediness because it's all in us, but what we can do is to learn how we can control and manage it. Still, there is nothing wrong with expecting more, but sometimes we have to be grateful even in the littlest earnings that we had, because at the end of the day that is still a profit. But again, all the lists and the advice here are easier said than done, learning to control your emotions would take a lot of time and that is fine.

[Fuso.hp]

Emotions or anger control them in making decisions and then they are asked to make decisions. If people do not have emotions then people will not be interested in doing any work so it is good for people to have emotions but they must be used properly. You have to have control over your emotions, when we have too much emotion or when we have too much anger, emotions will prevent our brain from making the right decision. When we take a wrong decision in trading it will directly affect our money and you definitely don't want to lose money by trading so it is better to control emotions while taking trading decisions.

[dunfida]

Here are some ways to control these emotions:

1. Don't expect much profit. For example: You think that you will become rich by investing in a coin.
2. After you have invested in a coin, you find that for some reason it has gone down in the market. At this time, without being emotional, you first look at the condition of the token, what condition it is in, and then take a decision with a cool head.
3. Avoid revisiting a coin after investing. You place a sell order with a specific target.
4. Trade according to market conditions. Don't immediately invest in someone's words.
5. Stay calm and try to control temporary emotions.

You can add "a profit is a profit," or, in short, don't be too greedy. I personally experienced this and learned my lesson in a hard way. What I mean is that in the past, when I started trading crypto, I couldn't get satisfied with a little earning; I wanted more, and because of that, I kept losing trades and still didn't stop because I wanted to chase my losses. Little do I know, I have become too greedy, resulting in more losses than earnings. That's why it's important to also control your greed; don't even think about being greedy. All you've stated is true and should be followed. Let's see more of the people in this forum to see what they will add to your list. I know many here experience a lot of stuff in terms of trading, and I'm talking about the negative happenings. But we are not perfect, so sometimes we still repeat the wrong deed. Maybe we just have to set boundaries to control ourselves.

I couldn't agree more! A profit is a profit, and no profit is too little or too much. Sometimes, we do not recognize profits that we consider as "too little" because we are expecting for too much. And you're right, I have read several replies in different threads which tells that people who are often controlled by their emotions tends to result to a major loss and being greedy is one of the major factors for this. I believe that we cannot completely detach ourselves from greediness because it's all in us, but what we can do is to learn how we can control and manage it. Still, there is nothing wrong with expecting more, but sometimes we have to be grateful even in the littlest earnings that we had, because at the end of the day that is still a profit. But again, all the lists and the advice here are easier said than done, learning to control your emotions would take a lot of time and that is fine.

A very smart way on making yourself that getting still in track or in line on your trading activity or career on which the main priority should really be making greens or profits no matter how big or small it would be on which means that you are really that doing good and something that should really be continued because you are really that doing fine. You would really be making out some adjustments later on if you do see that you
could really be already to sustain on what you are doing or would really be able to make out that kind of survival on this unpredictable space. Mistakes are inevitable but once you do able to experience those things then
you would really be normally be able to make out adjustments if ever you would be encountering on the same scenario or situation. Emotion handling is hard because we are just humans and we dont really like on losing money and this is why on the time that we are seeing the price is really declining and making those % negative in our accounts then it would really be just that normal for people to have such reaction.

[Dickiy]

Emotions or anger control them in making decisions and then they are asked to make decisions. If people do not have emotions then people will not be interested in doing any work so it is good for people to have emotions but they must be used properly. You have to have control over your emotions, when we have too much emotion or when we have too much anger, emotions will prevent our brain from making the right decision. When we take a wrong decision in trading it will directly affect our money and you definitely don't want to lose money by trading so it is better to control emotions while taking trading decisions.

Of course it will greatly affect decision making, and usually it is a decision that misses or is less precise that they take, none other than that because they make decisions when they are not in a good or calm position. That's right, although emotions can trigger a problem but it will not always be like that, I say everything will look or run well if you or they are able to put things in their place or in the portion that should be.

This is a trade that really requires calmness and also clear thinking to make the right decision, so if you absolutely cannot regulate or control emotions in yourself then obviously you will not be able to make the right decision when trading and usually will always end up losing. So the point is we must have good control and planning in terms of trading because only that can help you in achieving the profit targets that have been set at the beginning.

[KingsDen]

Most times we mistake ignorance and negligence for emotion. As long as we are living, we act every second with emotions. Humans are not emotionless. So, what happens most times is not lack of emotions. It could be negligence or other factors as

• Greed
• Impatience
• Inability to manage risk
• Lack of trading skill
• Ineffective trading strategies

But, we most times squeeze all these into emotions which is not very nice. It is high time we began to differentiate.

[Cryptodronik]

Hello fellow crypto enthusiasts,

I wanted to share my thoughts on the significant role trading bots play in the world of cryptocurrency trading. As we all know, emotions can often cloud our judgment and lead to costly mistakes when it comes to making trading decisions. However, trading bots offer a solution by executing trades based on predefined algorithms and strategies, eliminating the influence of emotions.

Here are a few reasons why trading bots can be beneficial:

1. Eliminating Emotional Bias: By removing human emotions from the equation, trading bots ensure that trades are executed based on logic and predefined parameters. This helps avoid impulsive decisions driven by fear or greed, which can lead to significant losses.

2. Constant Monitoring: Trading bots can tirelessly monitor the market 24/7, analyzing price movements and executing trades accordingly. This level of vigilance is nearly impossible for a human trader to maintain consistently.

3. Speed and Efficiency: Trading bots can execute trades at lightning-fast speeds, taking advantage of even the smallest market fluctuations. This enables traders to capitalize on profitable opportunities that may be missed by manual trading.

4. Backtesting and Optimization: Trading bots allow users to backtest their strategies using historical data, enabling them to fine-tune their algorithms for optimal performance. This feature helps traders identify and eliminate potential flaws in their strategies before risking real capital.

5. Diversification: With the ability to trade across multiple exchanges and various cryptocurrencies simultaneously, trading bots offer diversification opportunities that may not be feasible for manual traders. This diversification helps spread risk and increase the chances of consistent profits.

While trading bots can undoubtedly be powerful tools, it's essential to remember that they are not foolproof. They require careful monitoring and periodic adjustments to adapt to changing market conditions.

I would love to hear your thoughts on this topic. Have you personally used trading bots? What has been your experience with them? Let's discuss the pros and cons of incorporating trading bots into our cryptocurrency trading strategies.

Looking forward to your insights.

[knowngunman]

Nowadays, I would advise any newcomer to immediately get involved with bots and have a bot execute the trades (after an extended period of paper trades, of course). By keeping the emotions completely out of the trades, the chances of success are significantly higher, especially for newcomers. Otherwise you will quickly find yourself in a situation where panic dominates your own trades ... how that ends I think we all know.

There are also very good bots on the market, both free and paid. They are not particularly difficult to learn and can now be supplied with a variety of different (tested!) Strategies.

I will not subscribe to this idea because I believe that we all have to start somewhere. I still believe on the comments I qoute below concerning risk management when it comes to trading. Risk management is a key skill to develop as you become more experienced in trading. In the meantime, one of the best things you can do is educate yourself. There are plenty of resources out there to help you learn about different trading strategies and risk management techniques. Trading bots can be helpful in some situations, but it's very necessary to understand the potential risks and limitations. As a newbie in trading, it is best for you to focus on learning about the markets and developing your own trading strategy before considering the use of a bot. Some of them are not even effective as claimed and can misbehave due to bug. It's not always about the outcome but the process matter too.

Trading is all about risk management. If you are taking the risks which you shouldn’t be taking, it will make you nervous and the more nervous you are, the more mistakes you will make. In the end these bad trades will cost you money. You need to be emotionless like an npc while trading. It is the only way to win this game. Remember most people use algo-bots and that means you are not even trading with real people. You are competing with bots. These bots don’t have any emotions and you should be exactly like them. If you can’t do this, you shouldn’t be trading or should use bots just like everyone else.

You're very correct and I completely agree with you. Risk management is definitely a key component of successful trading. Without a solid risk management strategy, even the best trading ideas can turn into money losing trades. As a trader, it's necessary to set limits on how much you're willing to risk on each trade and to stick by to the limits. One way to manage risk is to use stop loss orders. This allows you to limit your losses even if the trade goes against you.

[GeorgeJohn]

What trading needs is a concentration and also an ability to interpret the market, so therefore what I want you to understand in trading and most especially the profit and loss aspect of trading is that, in some extent some traders use to be greedy in their trading, they always  want to accumulate their profits before cashing out, some of the traders today that get lost into trading the one of the major factors that lead to loss is as result of accumulating a profit.

Emotions of a greedy trader will make the trader to continue losing except that its a process whereby the trader has undergoes a different loss through trading, that is while I define trading as a continuous process, because the more you practice trading the more you learn more scopes of trading, and the more you loss the more you understand your weak point in trading.

So it's nice as trader not to be greedy and not trade with you can't afford to loss, this are things a beginner in trading industry have to know about trading, its very obvious and understanding that trading have to do with risk and secondly profit and loss in which a slight mistake in trading can make you to lose all you have gained

So what trading needs is consciousness, precautions, observation and concentration in order to actualize your target, because any trader have a target and the target is profit either higher profit or lower profit, so for you actualize it need to have the four words I listed in your mind, because when trading you don't need lack concentration or deviate from the angle of parameter.