Emotion, the real reason of your failure in trading

[Ndabagi01]

I agree with your statement about emotions being one of the major reasons why gamblers lost money in trading. But we can’t also disregard the effect of stop loss in your trades. In your plan and strategy, if you don’t include to which extent you want to take a loss from a trade before closing that position, you’ll end up liquidating your account. The use of stop loss also helps you to minimize your loss after you’ve made the wrong decision in your trade, it quickly reduces the losses you can take for that trade and have some capital left to help you in another potential trade you wish to take again. Stop loss isn’t the cause of your loss but it can help you limit your loss. Your emotions is what matters most and can lead you to many losses and liquidation of account.

[Jatiluhung]

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.

Yeah, that’s absolutely true. but the root of the problem lies in poor emotional management. after all, emotions are sometimes necessary to make bold, risk-taking decisions. But when we’re unable to control other emotions like greed and fear, that’s when the real problems arise. And I’d say greed, fear, and impulsiveness are the three things that consistently cause traders to suffer more losses.

This is why it’s so important to study trading psychology, emotional management, and risk management and to adhere to trading discipline with a well thought out plan that we’ve established. And I agree that patience in trading is a must-have for all traders who want to succeed in their trading endeavors.

[AVE5]

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.

Op you really known how this trading psychological stuff turns out unbearable on gradual processes.
I also want to believe that this same processes is also how some traders turns out to be professionals by the risk taking because, being successful in trades requires a level of risk experience but it's definitely not like those acting out of greeds and want to become rich too quick.
Some don't even consider their bank rolls while maximizing their trading risks and positions so that's why some blows off their accounts within the short whiles.
There's no principle in trading that's as favourable as risk management because, there you'd go a long term.

[Asiska02]

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.

Stop loss only helps you to limit your losses but it has nothing to do with how good or bad you are at trading. Stop loss is good under your proper risk management plan towards your trades and nothing more than that.

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.

Emotion is the real decider for most trader being profitable or not, but not many people pay attention to that. This is why many say that your emotion is up to 90% of you being successful in trading and 10% is the knowledge you have of the market. This further shows how important your emotion is and the role it plays in making you becoming a profitable trader. Having a proper risk management plan and obeying it still falls under your emotional obligation of the market. Trading with emotion will not get you to achieve success fast no matter how you your technical and fundamental approach of the market is.

[Nothingtodo]

Excessive emotion is born from excessive emotion and excessive greed is born from excessive greed and the downfall of a person is inevitable. When a trader starts trading by controlling himself, he gets good profits and that profit seems very insignificant to him. And he considers himself to be a very expert trader. He gains so much confidence in it that he does not hesitate to take any kind of risk. He takes his confidence level to another level and from that confidence later losses start. When excessive confidence and greed make him addicted, he does what he should not do. In this way, sometimes expert traders face huge losses while trading only because of confidence and excessive greed.

[Lida93]

Only that most traders go about learning the manu different skills and strategies to trade so they can win many trades than they lose but never give a strong attention to learn about how to control their trading emotions. Stop loss shouldn't be a thing to avoid for any trader, you can't have it both ways, so it's either you risk losing much without it or with it you minimize your loss. I guess that's what manu calls risk management. Most of all, what actually causes fears and emotions in trading is not only made when a trader tends to be greedy, and impatient but when he constantly uses funds that were never meant for trading. It's like risking what wasn't meant to be lost, the reminder of it breeds fears.

[Bright0515]

You can be a trader that's strategic, knowledgeable and still in more losses than profits because mastering the psychological and emotional part of trading is the most easiest thing to learn about but very difficult to practice. Emotions are bound to take over a person's thoughts at that moment when losses starts coming in, if you don't have the mental fortitude to be strong enough as a trader you would keep on getting emotional and making irrational decisions.

Master your thoughts, learn to be disciplined, apply risk management, work on your entries and always be patient, that shows a lot of discipline.

[Stepstowealth]

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.

It is in this board that I have read that emotional control is a big determiner of success in trading, even more than strategy, strategy is important too but strategy without emotional control will not still yield any success. There needs to be a balance between the two, not focus on mastery of one over the other. To be able to actually master your emotions you need to master yourself and be truthful to yourself in times where you are not at a position to place a trade and then at a position to place a trade because good understanding of yourself factors into emotional control a whole lot because it's only people who are self aware That can emotionally be in control at all times.

In trying to control emotions, avoid people or things that act as trigger.

[Popkon6]

Those who are more prone to greed in trading are basically addicted, because small profits make them, while those who want to make big profits basically put their capital at risk. That is why I say that by taking small profits, you should take repeated trades, in which your maximum profit will be made at the end of the week and at the end of the month.
Those who are afraid to be confident in themselves and want to make more money in one trade, have less patience and greed, and in the end they lose money and become addicted because they try to recover the lost money.
However, in my opinion, one to two trades should be taken a week, in which you can do market research properly and stay away from the signs of addiction.

[Alphakilo]

Emotional control, financial management practice, strategy, and all components of risk management practices contribute to trading success than just emotions only.
Emotions can be misleading no matter the mastery one has attained because humans always have daily challenges to face beside trading. Mood swings and even physical health could contribute to affect emotions and decisions.

Just as we know also, trading success is distinguished by strategies we flow with during making our entry, otherwise there won't be much difference between trading and gambling at all despite emotional maturity we have.

[I_Anime]

Emotions are part of it but the real reason is you actually . That’s why they always say is you vs you , when come to trading having a good self control is golden and will give you more wins you can ever imagined, this what differentiate pro from newbies, being a pro depends on how you handle situations in your daily life and trading in a whole . Loss is normal thing in trading , is part of the game and as pro trader you should be aware of that , so trade with the aim to build not to hit the jackpot like gamblers.

[GreatArkansas]

Emotional control, financial management practice, strategy, and all components of risk management practices contribute to trading success than just emotions only.
Emotions can be misleading no matter the mastery one has attained because humans always have daily challenges to face beside trading. Mood swings and even physical health could contribute to affect emotions and decisions.

Just as we know also, trading success is distinguished by strategies we flow with during making our entry, otherwise there won't be much difference between trading and gambling at all despite emotional maturity we have.

These are all parts of trading; that's even how much capital you have, even how much experience you already have, if you can't control your emotions or have no proper risk management = you can't be a profitable trader; this is already proven by many traders.
OP is right; it's not always one reason, but for me, it should be a combination of many.

[Byebyebtc]

You have to get to a particular level in trading before you will be able to manage your emotions,
That means your emotions has to mess you up a couple of times before you finally get to control it. It happens to be that before you get profitable in trading you will have eto learn from your own experiences and mistakes before you correct them.

You see all those mentorship or videos, those are not the real deal, the real deal is what you experience, you learn mostly with a cost in trading. So it's the same with emotions as well you have to experience your emotions messing you up before you finally let go and do what's right

[Sally9256]

I agree with your statement about emotions being one of the major reasons why gamblers lost money in trading. But we can’t also disregard the effect of stop loss in your trades. In your plan and strategy, if you don’t include to which extent you want to take a loss from a trade before closing that position, you’ll end up liquidating your account. The use of stop loss also helps you to minimize your loss after you’ve made the wrong decision in your trade, it quickly reduces the losses you can take for that trade and have some capital left to help you in another potential trade you wish to take again. Stop loss isn’t the cause of your loss but it can help you limit your loss. Your emotions is what matters most and can lead you to many losses and liquidation of account.

Some traders will tell you they don’t apply stop loss or take profits to their entries because they have the mindset that the Market will always go for your stop loss and return to it normal state by following up your strategies but won’t take you along. And at times this is true because most time the market always want to taste our stop loss and as soon as it taste it boom the market resume back to it normal movement rushing towards our take profits but still that doesn’t mean we shouldn’t apply risk management by applying our stop loss because stop loss reduce our losses and helps us prevent liquidation from a single entry.

[Rengga Jati]

The strategy must be consistently implemented. Each trader's strategy may be the same or different. This also depends on their habits. Some are better suited to one method and others, including the analytical process before determining the open position.

However, the important thing that unites them is:
The ability to control emotions. Yes, as you said, emotional control is crucial. This is a highly influential aspect of trading psychology. It can determine whether the strategy and analysis you've implemented are truly successful or not.

Even after seeing this picture, I truly understand how complex emotions in trading are.

emotion in trading

[LastKiss]

~snip~
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.

Indeed, it doesn't make me a good trader but it's how I manage my risk every time I trade.

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.

Although using a stoploss help me manage my risk but getting stopped out too often can be really frustrating. Sometimes I end up trading without a stoploss because on bad day, it feels like my stoploss is a magnet for the market. But yeah in the worst case scenario, I'll get liquidated if I don't protect my position with a stop loss which can lead to much bigger losses.

Nowadays, I take a break whenever I hit a losing streak and reduce my trading activity to avoid becoming greedy cause emotions can easily drive our decisions from good to bad and even good traders need to keep their emotions under control.

[mirakal]

The outcome of trading gets compromised when emotions are already involved. That's why if we can trade while trying to control our emotions, the result will be more favorable on our side, thus making us more profitable in the long run.

But in real life, people start trading due to their irresistible emotions. Decision-making is highly influenced by emotions. That's actually the reason why most of the traders are losing, not because they are less skillful and knowledgeable, less strategic, but because they are highly emotional every time they decide to trade, that even in their final decision heart overrules their mind and mental capacity.

[Questat]

I think every losing trader, it has always link to being emotional trader. Even myself may sometimes find it hard to get rid of emotions. Simply because we are humans, and emotions are part of being us. And no one may decide to go into trading if there are no emotions that push him to risk trading and expect profitable outcome after a positive trade. Emotions are what makes the biggest enemy of trading.

[jcojci]

I agree trading is all about patience because we can't expecting the market moves according us. The market will up and down following the buy and sell order so we can just wait for the next moves. If the market moving to our analysis, we will make a profit and vice versa.

So waiting for the market moves will related to emotion, not many traders have patience for waiting. Managing the emotions will be necessary so we should trains many times until our emotions will not disturb our focus.

Related to stop loss, that prevent you from losing if the market moves reverse to your analysis. You can set another strategy following to the current situation. Don't forget to use the money you can afford, that help you to manage your funds.

[Gozie51]

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.

You are right bro. The reason for losing is actually impatience. For example, 100 good trades can make you happy but one or two bad trades can bring you into sadness for longer time because you can lose all you have gotten from those good trades.

Traders don't lose because they don't know when is right for them to enter a trade order but most times they are impatient to wait for the right signal. They will jump right in because of FOMO. They trade by assumption and pull the trigger even when confluence have not been cleared up for direction to show. So trading by assumption and expecting the market to conform to what the mind is telling you is unrealistic trade. A trader is suppose to follow what is happening in the market and not with expectations and sentiment he has in his head.

Yes, a little more patient will give the right direction for profitable trade.