How to deal with Emotional Swings in trading

[jaberwock]

Experience will be your best teacher. Emotional swings can be very bothering when trading, but we can’t do with that as it’s normal for us to feel high and low emotions. But eventually, when we get used to trade and have been exposed to different emotions and its respective outcomes, that’s when we will realize that we shouldn’t do this or do that so we can minimize from experiencing the possible negative outcome.

Before experience, there is still a literal teacher and mentor, and they can be great too. Emotional swings can be annoying too, especially if we think it is impossible to prevent or cure them. For some it is normal but it can as well be a disorder.

It can be an inborn or there is a thing that cause or triggers it. One would that be is Trading. Being exposed and get used to, will also cause us to be immune, so we can actually do the things over and over again even if we know that some are not really good to us. It is not that we all like them but it is just that some are only an outcome if we won't succeed. That being said, they still have a benefit.

[Zoomic]

That's the reason experts tells us that trading is about learn how to deal with your own psychology, because after you have learned how to trade very well and start making profit, what can become the trader's next obstacle is him self, there will be days when he will be treated badly by the market and all he need to do is stepping out of the market for that day, but if he is not smart enough in psychology, he will refuse to stop and that's when he start to trade with emotions and not by skill again. Like you said, a trader should have a plan and also take a break from the monitor when the day is bad.

In addition to the plan, every individual knows what works for him or her when emotionally down. For me, when my emotions are low, I just take a break and spend time with my spouse, family, or friends. Most times, they understand the situation and try to tease me about it. We laugh it out, and the next minute I'm back, trying to sort out what went wrong. What works for me may not work for the next person, but each and every one of us knows ourselves better.

[DaNNy001]

One thing you must learn to do is to accept your losses whenever you lose instead of trading more to get back the money you lost, one way to escape emotional swings is by becoming more mature, an emotional trader cannot get anything positive out of the market.. it's important to always master your emotions, the most important in trading is your strategy development and risk management skills

[tygeade]

One thing you must learn to do is to accept your losses whenever you lose instead of trading more to get back the money you lost, one way to escape emotional swings is by becoming more mature, an emotional trader cannot get anything positive out of the market.. it's important to always master your emotions, the most important in trading is your strategy development and risk management skills

True, and I agree. But I have been in such position before and no matter what you think and plan, once the trades go bad you start having anxiety and sleepless nights. Yeah maybe someone who is not trading with a big amount can control their emotions but when your savings are on the line, it's really hard to stay calm.

I have heard people saying that trade with a demo account first but it doesn't give you the real experience because when you have the savings on the line, the decision making is shaky and emotional.

The best way to sum up is how the famous saying goes - Everyone has a plan until they get punched in the face .

[Franctoshi]

One very thing that I have come to realize is that emotional swings are inevitable in trading. You can be feeling so confident and on top of the world after securing a huge profit, then suddenly the feeling of frustration and anxiousness sets in after a loss or setback. It's sometimes a rollercoaster.
What has always been helping me whenever this happens is to step away from the screen of my phone or laptop( as the case may be). I also try to stick to a plan, once I have set my entry and exit I try very much not to second guess cos the market is moving. Journaling my trade also helps me to notice patterns in my emotional response.
It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.

There's no way that you will manage emotions peoppierly without risk management in the picture,  definitely loses will come and how wil this not Impact your mental health? If not when you have proper risk management In place with good strategy and well disciplined approach which involves patients. Allow the market come to you, especially where you're satisfied to that risk don fear, place that trade with less or zero emotions by putting your stop loses, T.P and sometimes use Break even to control your trade by locking in some profits when you're on the win side.

[finaleshot2016]

One thing you must learn to do is to accept your losses whenever you lose instead of trading more to get back the money you lost, one way to escape emotional swings is by becoming more mature, an emotional trader cannot get anything positive out of the market.. it's important to always master your emotions, the most important in trading is your strategy development and risk management skills

True, and I agree. But I have been in such position before and no matter what you think and plan, once the trades go bad you start having anxiety and sleepless nights. Yeah maybe someone who is not trading with a big amount can control their emotions but when your savings are on the line, it's really hard to stay calm.

I have heard people saying that trade with a demo account first but it doesn't give you the real experience because when you have the savings on the line, the decision making is shaky and emotional.

The best way to sum up is how the famous saying goes - Everyone has a plan until they get punched in the face .

True, the reality is hard and very difficult. Of course, there's a lot of what ifs in your mind and it's really hard to accept sometimes especially if it's your savings are on the line, the money that could be invested on other things. Sometimes we believe to take a risk, take a leap of faith because it might change our lives but taking risks are also dangerous, it might bring you more problems if not played well. We can't blame people if they're getting emotional on bad trades and bad decisions in life, people do often mistake and it's normal.

Demo accounts are good at start maybe? but if you want to learn in the best way, it's always the hard way. 

[Woodie]

After several years of personal research, and having been the person trading behind the charts I can tell you for certain that trading with a plan is the only way to overcome these emotions! And we should also accept that loses do happen, so if you decide to go short or long, put in that trade and leave the working station provided you have put in stop losses and all....

But here is the problem, you know how you put a stop loss and price comes to sweep it and go your direction, alot of traders think trading without one is smart, but tbh it's over risking your account which is a bad habit.. trading is about discipline and if you can't play by the rules then you shouldn't be trading.

[hyudien]

This is very true as I am actively trading. There are days I will be winning but a time will come that I will lose. This time is very important to stop trading for like a day or more because if you do not stop trading after the lose, it is highly possible for the trader to continue to lose until his trading fund are all lost.

So with a single lose you will stop trading for day or more? That does not seem like what I know about handling the loses in trading because no matter how good you are as a trading, you cannot achieve a win rate of 100%. I don't know what method you use in trading and if it promises 100% win rate but the requirement of stopping to trade for a day because of a loss is not a great strategy. My trading style makes room for losses, but my target is that I should win more than I lose and my wins should be multiples of my losses.

Each trader's loss handling is definitely different, @oshosondy wants every trader to experience the smallest possible loss and we are aware that when losing emotions often increase, therefore stopping this activity is recommended so as not to get carried away by emotions and experience much greater losses, now for the stopping time depends on your emotional level if you are not ready that day it is not wrong to stay away from the market for a day if otherwise and your emotions have subsided then you can also return and there is no strategy with a 100% win ratio this is only to minimize losses. Now from your trading style if I see this like chasing losses, it doesn't matter because this is your style.

[Theupdude]

One very thing that I have come to realize is that emotional swings are inevitable in trading. You can be feeling so confident and on top of the world after securing a huge profit, then suddenly the feeling of frustration and anxiousness sets in after a loss or setback. It's sometimes a rollercoaster.
What has always been helping me whenever this happens is to step away from the screen of my phone or laptop( as the case may be). I also try to stick to a plan, once I have set my entry and exit I try very much not to second guess cos the market is moving. Journaling my trade also helps me to notice patterns in my emotional response.
It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.

Trading really messes with your emotions if you let it I used to chase losses or overtrade, after a win just because I felt invincible but that never ends. Well now I try to take breaks after big wins or losses and remind myself that it's a long game having a plan, like you said helps a lot and journaling is something.

[Oshosondy]

Before experience, there is still a literal teacher and mentor, and they can be great too. Emotional swings can be annoying too, especially if we think it is impossible to prevent or cure them. For some it is normal but it can as well be a disorder.

I still always think that having a mentor does not mean anything. Even a mentor can teach you everything and let you know when to stop trading but you will still leave the mentor. People are not machines but they are people and they may trade and the trade can go against them and they may not stop when the time is necessary but causing them further losses. The best what I see people deal with emotions in trading is still the use of low leverage and also using low amount of money to trade.

[Awaklara]

One very thing that I have come to realize is that emotional swings are inevitable in trading. You can be feeling so confident and on top of the world after securing a huge profit, then suddenly the feeling of frustration and anxiousness sets in after a loss or setback. It's sometimes a rollercoaster.
What has always been helping me whenever this happens is to step away from the screen of my phone or laptop( as the case may be). I also try to stick to a plan, once I have set my entry and exit I try very much not to second guess cos the market is moving. Journaling my trade also helps me to notice patterns in my emotional response.
It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.

Trading really messes with your emotions if you let it I used to chase losses or overtrade, after a win just because I felt invincible but that never ends. Well now I try to take breaks after big wins or losses and remind myself that it's a long game having a plan, like you said helps a lot and journaling is something.

You have experienced chaos because of trading. The situation is created by ourselves because of our inability to control our emotions. Trying to stay in the initial plan, such as only trading with low Leverage, can control your emotions. Every change that occurs, you must calculate it so as not to be excessive, which has an impact on the amount of money you trade. However, the situation of large losses is very likely to affect the thoughts and actions that we will make.

[sana54210]

The best way to deal with emotions during trading is through confidence building. If you know you had a massive loss today but in the long run you will be fine, then that loss would never hurt as much. The problem and panic starts when you lack confidence and after a losing trade your confidence takes a hit and you are not able to think clearly.

Consider a sports you are good at, when you are in a losing position you don't panic because you have the inner belief that you will make the comeback. So once you build real confidence you will never have a hard time controlling emotions.

[Mame89]

It's really not an easy one, but learning to stay calm and focused has really helped make better decisions. How do you manage you emotional ups and downs that comes with trading, love to hear your responses.

It is true that trading cannot be separated from emotions such as greed, joy, euphoria, panic, or fear. However, we need to know that excessive emotions like this can result in huge losses. This is where a trader must be able to avoid negative emotions in himself. For example, in general your emotions think about not wanting to lose money due to defeat, then change the mindset of fear of loss, to fear of not being able to control emotions when losing.

Because the price controller in the crypto market is not you. Therefore, you must try not to be too arrogant after winning. You must still be able to control your emotions and be rational in every transaction made. Likewise, when you experience a loss, you do not need to vent your emotions excessively and do not be easily trapped by feelings of revenge when you experience a loss, or want to add capital when you make a profit. This is an important point to become a trader who is able to control yourself. A logical approach and mindset are the best trading tips needed to overcome emotional changes in trading.

[taufik123]

-snip-
The best what I see people deal with emotions in trading is still the use of low leverage and also using low amount of money to trade.

And even better way is not to trade with the futures method for those who are too panicked and don't know how to manage a good trade and can't do analysis.
Because most beginners are only interested in the profits of others who start with futures trading, when it is more at risk of losing or being liquidated.

A person's emotions in trading will vary, some are indeed human and can control their emotions,
but there are those who panic too much and then do not follow the initial strategy that has been made. 

There will be more losses if you can't control the emotions of trading.
I also in the early days of learning to trade, quite panicking with the price decline too quickly and even the increase that was beyond my prediction.
But when you have a lot of experience and know how the crypto market works, it can all be handled well without involving emotions and panic.

[Lanatsa]

One thing you must learn to do is to accept your losses whenever you lose instead of trading more to get back the money you lost, one way to escape emotional swings is by becoming more mature, an emotional trader cannot get anything positive out of the market.. it's important to always master your emotions, the most important in trading is your strategy development and risk management skills

True, and I agree. But I have been in such position before and no matter what you think and plan, once the trades go bad you start having anxiety and sleepless nights. Yeah maybe someone who is not trading with a big amount can control their emotions but when your savings are on the line, it's really hard to stay calm.

I have heard people saying that trade with a demo account first but it doesn't give you the real experience because when you have the savings on the line, the decision making is shaky and emotional.

The best way to sum up is how the famous saying goes - Everyone has a plan until they get punched in the face .

True, the reality is hard and very difficult. Of course, there's a lot of what ifs in your mind and it's really hard to accept sometimes especially if it's your savings are on the line, the money that could be invested on other things. Sometimes we believe to take a risk, take a leap of faith because it might change our lives but taking risks are also dangerous, it might bring you more problems if not played well. We can't blame people if they're getting emotional on bad trades and bad decisions in life, people do often mistake and it's normal.

Demo accounts are good at start maybe? but if you want to learn in the best way, it's always the hard way. 

One of the main things that makes you that impulsive is that on the time that you've been using up your savings account or emergency funds or even going to use your last funds on doing trading. Every decisions you do made will definitely be giving out that kind of impulsiveness on which it will becoming that stressful specially if the price would be going against into your plan or into your position. How to deal with emotional swings in trading? Actually this could only be solved out with enough experience and engagement towards the market. You cant just that make yourself that being directly becoming that numb when it comes to emotion specially when you are just that starting. When you are still newbie then your expectations on making profit is high and thats why you are that too careless when it comes to money management on which we know that this is that very crucial when it comes to trading.

Dealing up with unpredictable market isnt something that you can be able to avoid when it comes on affecting out your emotion because losing money is never been that giving out that good feeling in the first place. You would become that emotional and once you see that you are losing money. How to control it out? as much as possible you should be that trying out to learn into the mistakes that you have done. Once you do able to learn up with those then you do make that kind of adjustments on which it will be that relevant on what you are currently doing. Once you do have that sufficient experience and awareness then you wont be that easily that get afraid and freak out at the time on what the price would be that going.

[GiftedMAN]

After several years of personal research, and having been the person trading behind the charts I can tell you for certain that trading with a plan is the only way to overcome these emotions! And we should also accept that loses do happen, so if you decide to go short or long, put in that trade and leave the working station provided you have put in stop losses and all....

But here is the problem, you know how you put a stop loss and price comes to sweep it and go your direction, alot of traders think trading without one is smart, but tbh it's over risking your account which is a bad habit.. trading is about discipline and if you can't play by the rules then you shouldn't be trading.

You write like an experienced trader that knows what need to be done to become a good trader. Emotions has been a big challenges to many new traders and they keep complaining why it's very difficult for them to make money from trading. Every trader that wants to be profitable in the market must be ready to learn what it's going to take them to be successful. Making money in the market is like a game of chance and we should project everything we ought to accomplish and work towards them.

[harapan]

Experience will be your best teacher. Emotional swings can be very bothering when trading, but we can’t do with that as it’s normal for us to feel high and low emotions. But eventually, when we get used to trade and have been exposed to different emotions and its respective outcomes, that’s when we will realize that we shouldn’t do this or do that so we can minimize from experiencing the possible negative outcome.

Exactly one can't actually run from some certain things in life no matter how they try to. But in the contrary they can be controlled cause sometimes when you feel like doing a particular thing there's an inner voice that speaks to you but you tend not to follow it rather you go by your mood and end up losing what you would've gained. So better still  it's best to have a limits of control when experience such mood swings inorder not to alter the trades.