Emotion, the real reason of your failure in trading

[Oshosondy]

After you have seen yourself as a very good trader, that has graduated from the newbie trading, you set trading plan, you achieved it and used it to be making money, but later overconfidence become the start of greediness, you increase leverage and later it started with small losses from stop loss before it will later be followed by not using stop loss that you think is helping you and you lose all the money on your trading account.

All these things are interconnected, work on your emotions by trading with the amount of money that you can afford to lose. You can average but do not go for martingale and trade just good coins like bitcoin.

Stop loss is not what make you to be a good trader, it is about how you are able to manage your emotions by not disobeying your own trading rules/plans/strategies.

Most traders are saying use stop loss, do this, do that but emotions from a single or two bad positions set the bad emotions that easily caused trading assets liquidated.

Trading is all about patience.

[EL MOHA]

Most traders are saying use stop loss, do this, do that but emotions from a single or two bad positions set the bad emotions that easily caused trading assets liquidated.

All you have written and advised are aptly described for anyone looking to become successful in trading.

As for the advice about stop loss I don’t see any trader that will actually advised the use of stop loss without actually talking about risk management and trading psychology. It is part of this psychology that we have a tender emotions or mental wellness. Setting stop loss and even sticking to stop without changing it when the market starts to move in abnormal directions is even one way of controlling your emotions. So anyone advising the use of stop loss with advising traders to be patient is simply advising them to gamble.

Trading emotions is one strong fundamentals that I recommend in fact it actually the biggest point that separates a successful trader and an unsuccessful one.

[freedomgo]

No need to explain too much because we already know emotion is one of the biggest problems in trading. FOMO, greed, panic, and revenge trading can easily ruin your plan.

Once emotion takes over, that’s usually when you start making bad entries and chasing losses. Especially in day trading, you need discipline and consistency. It’s not like gambling where one lucky win can save you. You need to follow your strategy most of the time if you really want to reach your target.

But if you’ve been trading for a long time and you still can’t control your emotions, maybe day trading is just not for you. Long-term investing might fit better. You buy, hold, and wait instead of dealing with pressure every day.

[Arenga pinnata]

When a trader can no longer control their emotions in the market, all strategies, all analysis, and all careful planning that have been put in place will be in vain. This is because traders who are carried away by their emotions tend to forget all the careful plans they’ve prepared. They may even begin to doubt the results of their own analysis.

Those who let their emotions take over are usually filled with doubt. for example, when it’s clear the market is trending downward. Then their minds start wondering, “What if the price suddenly reverses direction?” or something similar. This leads the trader to try to catch a falling knife. Instead of making a profit, they end up getting swept away by the trend and losing even more from the start.

And one more thing, if we’re going to enter the market, we must first make sure our emotions are stable. This is because emotional control usually becomes difficult when we bring external problems into the market. For example, if we’re feeling sad or angry at someone in the real world and then try to enter the market, we’ll end up using the market as an outlet for our emotions and the results will be truly disastrous. We’ll only realize this after we’ve already suffered a loss.  

[348Judah]

In trading, we must not only show our competence in being analytical about our trading strategy and also accurately analysis we have taken, it is very necessary for every trader to also have an additional trait of being a trader that could manage his emotion accordingly, this will make us to go into trade by not just feelings but being able to apply every other indications for a positive trading experience before we go into it.

[Ziskinberg]

Emotions can really make you do stupid things in trading. You need to treat it like a business and stay focused on your plan.

Most traders who are easily controlled by emotion are usually still lacking knowledge or experience. If every time you feel emotional during a trade you end up losing, then clearly that’s one of the things you need to work on.

You can continue learning and practicing, but don’t rush into bigger trades while you still can’t control yourself. First, understand the market and improve your discipline.

Once you feel that you’re already more mature as a trader and your emotions are no longer controlling your decisions, then you can slowly become more serious with it.

[Accardo]

Overconfidence is not just the only thing that makes traders go offtrack with their plans, herd behavior and mental accounting have strong reaction on the a trader's decision making. Traders treat money differently, some have allotted to their brain never to forget a certain amount whenever it's lost, which affects the trader's decision in the future, due to the inability to think straight or make up the right plan. Also, they're traders who focus more on what the herds have to do, such that building up a personal strategy to help the way they think towards trading is never a plan. Their decisions are mainly fueled by what the crowd are saying or doing, risking their chances of taking individual thoughts and behavioral effects seriously.

[Nrcewker]

Trading is all about patience.

This is the main thing many newbies ignore. They get fascinated by traders posting luxury lifestyle reels and think that trading is easy and a quick way to make money. However they need to understand that if the potential rewards are quick and huge then the risks involved are equally significant.

I myself fell into this trap of greed. I had a thousand dollars and decided to try scalping. I thought I could predict the market’s direction and used 100x leverage. Since my only motive was to make some quick cash, I ignored setting a stoploss. As a result within a matter of minutes, my entire balance was wiped out.

The lesson is simple that is to trade with patience, follow proper risk management, and never let greed control your decisions.

[Agbamoni]

Emotions can break or make you in trading, business, and investment. Whatever ever that has to do with uncertainty, emotions are the reason why we will be successful in that thing, or we will fail while trying. This feeling called emotions affects people differently.

What will cause me to panic, FOMO, may not cause another trader to panic. Evidently, I've been able to control my emotions with the help of reading books. Without it, who knows the errors I would have made when trading, because sometimes life hits you at your lowest point, and that could make you react negatively and not think straight.

[bitLeap]

After you have seen yourself as a very good trader, that has graduated from the newbie trading, you set trading plan, you achieved it and used it to be making money, but later overconfidence become the start of greediness, you increase leverage and later it started with small losses from stop loss before it will later be followed by not using stop loss that you think is helping you and you lose all the money on your trading account.

Confidence is good but when confidence is pushed on the basis of greed in the market often makes traders swallowed by their own greed. Emotions are not so bad if from the very beginning they have learned how to control them. But no trader is always perfect in his calculations, it all depends on how they limit the portion of risk when they are losing. Professional traders often experience losses, the difference is that pro traders know how to limit these losses, while on the contrary, traders who are without a plan from the start do not have anticipation and let emotions control themselves.

[Russlenat]

Okay, i want to share about this "emotion" thing...

Based on my experience in crypto before 2020, most of my mistakes were really because of emotion and being too impulsive.

I was still new at that time, and I trusted Bitcoin too much. When the price kept going up, I became too confident and emotional.

When Bitcoin reached the ATH, I should’ve sold already, but I was still expecting it to go higher. Then the market dumped and entered a bear market. That’s when I finally sold, so I ended up losing money. It was a bad experience, but at least I learned from it. After that, I became more careful and started looking more at the data, holding with a plan, and knowing when to sell.

[Smack That Ace]

No need to explain too much because we already know emotion is one of the biggest problems in trading. FOMO, greed, panic, and revenge trading can easily ruin your plan.

Once emotion takes over, that’s usually when you start making bad entries and chasing losses. Especially in day trading, you need discipline and consistency. It’s not like gambling where one lucky win can save you. You need to follow your strategy most of the time if you really want to reach your target.

But if you’ve been trading for a long time and you still can’t control your emotions, maybe day trading is just not for you. Long-term investing might fit better. You buy, hold, and wait instead of dealing with pressure every day.

I don't think many of us realize this. From what I have seen, most discussions about trading focus on knowledge, TA, and stop losses. I rarely see anyone talk about emotional control and trading psychology.

What many people don't realize is that most trader lose money because they can't control their emotion, lack discipline, and keep making impulsive decisions, not because they lack knowledge. Because unlike knowledge, emotional control is not something you can develop just by spending time studying.

Emotional control and risk management are the key factor in trading.

[Finebone]

From what I have seen, most discussions about trading focus on knowledge, TA, and stop losses. I rarely see anyone talk about emotional control and trading psychology.

What many people don't realize is that most trader lose money because they can't control their emotion, lack discipline, and keep making impulsive decisions, not because they lack knowledge. Because unlike knowledge, emotional control is not something you can develop just by spending time studying.

Emotional control and risk management are the key factor in trading.

No, I think you are wrong with such statement because some thread in this trading board is about emotional control and trading psychology, unless you are not following up discussion here that much which may be the reason you may not noticed.

The op is right with his sentiment when he said that lack of emotional control is the main reason some traders lose money in the market, because emotions have a way of making you doubt your own analysis, even after having a lot of confirmation that your analysis are right, so for any trader to be successful in trading, he must be able to tame his emotions, by trading with only what he can afford to lose, that way he wouldn't be making an emotional decisions while trading.

[Odusko]

After you have seen yourself as a very good trader, that has graduated from the newbie trading, you set trading plan, you achieved it and used it to be making money, but later overconfidence become the start of greediness, you increase leverage and later it started with small losses from stop loss before it will later be followed by not using stop loss that you think is helping you and you lose all the money on your trading account.

All these things are interconnected, work on your emotions by trading with the amount of money that you can afford to lose. You can average but do not go for martingale and trade just good coins like bitcoin.

Stop loss is not what make you to be a good trader, it is about how you are able to manage your emotions by not disobeying your own trading rules/plans/strategies.

Most traders are saying use stop loss, do this, do that but emotions from a single or two bad positions set the bad emotions that easily caused trading assets liquidated.

Trading is all about patience.

There can never be profitable trading with emotional involvement, because flexibility of emotions is what the exchange leverage on to give those high tempting offer's, market answers to logic and following trading patterns, which is far from achievement if there is any form of emotional interference, in the course of your trades until you eventually take profits, it's your emotions that kill the ability to stay patient in the face of market uncertainty that could arise during the trade, like SL is a product of emotions if not why stop lose when you can wait out till recovery of the market.

[Dr.Bitcoin_Strange]

This is why some successful traders usually say that psychology is the second thing to master after one has already learned some strategy and has found one to be working very well. It is possible that a trader has good strategy but they are not still profitable because they can not control their emotions, they have not master the trading psychology and so would not be successful until they fix that part of trading. This problem of emotions in trading has made some people become greedy, they can set a take profit target but when price is getting to that level, they will extend it and by so doing, they end up falling into  deep losses when price reverse against them.

[boyptc]

Stop loss is not what make you to be a good trader, it is about how you are able to manage your emotions by not disobeying your own trading rules/plans/strategies.

Most traders are saying use stop loss, do this, do that but emotions from a single or two bad positions set the bad emotions that easily caused trading assets liquidated.

Trading is all about patience.

No matter how disciplined you are, if you allow that emotion to take over your mind. It's all going downhill for you.

The trades that you've won can easily be taken back by losing it due to uncontrolled emotions that you have. It takes a lot of experience, guts and losses for a trader to control.

It's a fact that trading requires so much patience and people think that every single day you need to have results. No, it doesn't matter whether it will take your trade days or weeks or months to win as long as you're in profit, thanks to your patience and not only that, it's a mental warfare.

[Charles-Tim]

This is why some successful traders usually say that psychology is the second thing to master after one has already learned some strategy and has found one to be working very well. It is possible that a trader has good strategy but they are not still profitable because they can not control their emotions

How will they be able to control their emotions when they want to make huge amount of money from trading within a short period of time?

I have seen many traders that said they are good but they are not using the money to buy anything. That means they are no making any money from trading.

Most traders that I know that are making it in life, it is the work that they are doing which is not trading that they are making rheir money from.

Traders will always be losing because they can not expect low profit but they expect high profit from the low amount of money that they are using to trade. The whales always know how they will liquidated their money.

[The Cryptovator]

Stop loss is not what make you to be a good trader, it is about how you are able to manage your emotions by not disobeying your own trading rules/plans/strategies.

Most traders are saying use stop loss, do this, do that but emotions from a single or two bad positions set the bad emotions that easily caused trading assets liquidated.

Trading is about to follow your own plan. Based on your own strategy, you have to decide whether you should use a stop loss or not, otherwise when you need to use it. I have lost due to the cancellation of the stop-lose and also missed profits for using the stop-lose. It was included in my strategy, but the strategy seems to have failed.

Stop-loss is part of the trading; it doesn’t certify whether you are a good trader or not. I know emotion always affects our trading decisions; we shouldn’t be much more emotional during trading. However, using a stop loss on the trading will manage the risk, because risk management is also part of the trading.

[RockBell]

In trading, we must not only show our competence in being analytical about our trading strategy and also accurately analysis we have taken, it is very necessary for every trader to also have an additional trait of being a trader that could manage his emotion accordingly, this will make us to go into trade by not just feelings but being able to apply every other indications for a positive trading experience before we go into it.

Every aspect of trading depends on market analysis since it is the only way to be recognized as a trader. Additionally, even after conducting market analysis, you will still need to be ready for what lies ahead because, in the worst-case scenario, you will have to accept the results if you don't get the desired outcome. This is where emotional control is important since poor emotional control will affect everything. Since trading entails a great deal of responsibility and is therefore not for everyone, you just need to be ready for all these things when you want to seriously focus on trading. Emotions can even cause you to lose money. And that is why you people are doing revenge trading.

[puloweh555]

It could be said that emotions are the foundation of trading. Without the ability to master them, no matter how well you use your strategy it won't work. Conversely, when you can master your emotions well even a simple strategy can produce good results. This is also why many senior traders always emphasize "Master your emotions first, then your strategy."

Emotions are one of the most crucial factors in trading. For example, without mastering emotions well when you're in profit you'll want to trade even more. Indirectly, you delay taking profits even increase your capital excessively, and inevitably neglect risk management. Ultimately, the results often turn into significant losses. There are many more examples of trading without mastering emotions. We can liken trading to driving a car while looking at a map to reach your destination faster without getting lost. If strategy is the map then emotions are the driver. So a good map is useless if the driver is panicked or reckless.