Emotional Control
Emotion in trading leads to bad decisions. Control your emotions, or they will control you.
Core Emotions
Fear
| Fear Type | Response |
|---|---|
| Fear of losing | Accept it as cost of trading |
| Fear of missing out | Wait for your setup |
| Fear of being wrong | Expect some wrong trades |
Greed
| Greed Type | Response |
|---|---|
| Wanting more | Take profits as planned |
| Over-trading | Stick to plan |
| Increasing size too fast | Follow sizing rules |
Emotional Control Techniques
1. Pre-Trade Check
Before every trade:
☐ Am I emotional?
☐ Is this my setup?
☐ Is risk defined?
☐ Do I accept potential loss?
If any “no” → Don’t trade.
2. Breathing Technique
When feeling emotional:
1. Step back
2. Take 3 deep breaths
3. Reassess
4. Continue only if calm
3. Time-Based Rule
When emotionally charged:
Wait 1 hour before trading
Walk away
Review rules
Return only if calm
Emotional States
| State | Trading Fitness |
|---|---|
| Calm | ✅ Trade |
| Mild anxiety | ⚠️ Caution |
| Angry | ❌ Don’t trade |
| FOMO | ❌ Don’t trade |
| Revengeful | ❌ Don’t trade |
Common Mistakes
1. Trading While Emotional
Problem: Trading angry or frustrated.
Fix: Stop. Walk away.
2. Ignoring Emotions
Problem: Not recognizing feelings.
Fix: Check emotions before trade.
Key Takeaways
- Check情绪 — Before trading
- Stop if emotional — Don’t force it
- Use technique — Breathing, time
- Accept variance — Some will lose
Related
Control emotions. Trade calmly.