Download MetaTrader 5

What exactly are the Symptoms of Emotional Trading?

To add comments, please log in or register
Find out the latest MQL5.community news!
Mosleur Rahaman Riad
337
Mosleur Rahaman Riad 2013.01.06 19:56 
Hi to all,

I have been reading about emotional trading and why it is so nasty, but I am not clear what the symptoms of it are. So what are the feelings you have when you’re under emotional trading?

Sergey Golubev
Moderator
93779
Sergey Golubev 2013.01.06 20:55  

I think - it is about trading by real money.
I know just 2 factors:
1. "I am affraid to lose"
and
2. "I want to trade"

Just some explanation about why it is simptoms of emotions:

About item 1. Losses are part of this "game" (forex). And experienced traders (when they are looking for good trading system) are asking "when can I lose and why" more than "how can I win and why". They understand that losses are part of forex.
But traders under emotions can not control this situation by themselves.

About "I want to trade". The trader under emotion can not strictly follow the rules of his system. He feels that he must trade right now, irrespective off ...
Because he can not resist with the situatiion when someone is making the profit with some system but he is waiting for good signal on the same time.

 

Tonny Obare
29330
Tonny Obare 2013.01.10 08:01  
1) Getting the urge to immediately close trades as soon as they become profitable way before the set tp 2) Extending sl when its about to be hit in the hope that the price will reverse 3) Increasing lot size after a loss or after a few profits 4) Using big percentage of your balance on one trade in the hope of a quick kill 5) Setting a one week/month incremental lots millionare plan
Oluwadare Paul Oguntosin
633
Oluwadare Paul Oguntosin 2013.01.27 18:22  
greedy, wanting to cash more
enbo lu
Moderator
1947
enbo lu 2013.01.28 14:11  

Trading without a plan.

Trading more when losing.

Don't stop loss but take profit too quickly. 

Ahmed Soliman
15732
Ahmed Soliman 2013.02.08 17:27  
Hope and fear. That's all.

When you don't set a stoploss hoping the market obey your dreams. HOPE


When the trade makes some pips and your heart starts beat harder to close the trade. FEAR

Whenever you trade without plan your are emotional trader trading the hope and fear.
John May
3761
John May 2013.02.09 03:12  
zzzBhuyian:
Hi to all,

I have been reading about emotional trading and why it is so nasty, but I am not clear what the symptoms of it are. So what are the feelings you have when you’re under emotional trading?

I read somewhere once that 95% of all Forex traders lose 100% of their money. How true those words seem.

Letting emotions creep into trading is not profitable.

I have a theory about trading that I would guess nearly everyone goes through at one time or another. It goes like this:

"The Seven phases of the beginning  forex trader

It all starts with No 1. Conservatism - after all the trader has read, he/she approaches each trade with tight stops and predefined limits just like the articles and books said. Then comes No. 2. Success - Good, well thought out trades bring profits, so quickly! Much better than I thought. Which leads to  No. 3. Overconfidence - This trading  method works every time, I am a genius. I am the best trader in the world. Of course that leads to No. 4. Greed - If I can make this much with one lot, then I can make twice as much with 2 lots. but all of a sudden there is No. 5. Denial - That's ok, the price will come back down, it always does. The top of the fibo is just above it, don't worry. No reason to close it now. Next is No. 6. Panic - No No No, it has to come down, I can't close now, look at how much I will lose. The balance is still up, It is not a loss if I do not close. And finally, my absolute favorite No. 7. Despair  Margin call, what is a margin call?, what happened to my positions? its all gone, its all gone....

I think a lot of us here turn to programming to remove the emotion from the equation. The EA doesn't care what the price is, it just does what it is told in the code. 

Ahmed Soliman
15732
Ahmed Soliman 2013.02.09 03:56  
Exactly!
Steven Theobald
852
Steven Theobald 2013.02.13 16:54  
CappinJack:

I read somewhere once that 95% of all Forex traders lose 100% of their money. How true those words seem.

Letting emotions creep into trading is not profitable.

I have a theory about trading that I would guess nearly everyone goes through at one time or another. It goes like this:

"The Seven phases of the beginning  forex trader

It all starts with No 1. Conservatism - after all the trader has read, he/she approaches each trade with tight stops and predefined limits just like the articles and books said. Then comes No. 2. Success - Good, well thought out trades bring profits, so quickly! Much better than I thought. Which leads to  No. 3. Overconfidence - This trading  method works every time, I am a genius. I am the best trader in the world. Of course that leads to No. 4. Greed - If I can make this much with one lot, then I can make twice as much with 2 lots. but all of a sudden there is No. 5. Denial - That's ok, the price will come back down, it always does. The top of the fibo is just above it, don't worry. No reason to close it now. Next is No. 6. Panic - No No No, it has to come down, I can't close now, look at how much I will lose. The balance is still up, It is not a loss if I do not close. And finally, my absolute favorite No. 7. Despair  Margin call, what is a margin call?, what happened to my positions? its all gone, its all gone....

I think a lot of us here turn to programming to remove the emotion from the equation. The EA doesn't care what the price is, it just does what it is told in the code. 

This is so perfect.  You are wise CappinJack. 
Janis Smits
732
Janis Smits 2013.02.13 20:42  

there are only two emotions:

1. Greed to make more money

2. Fear to loose money


Both are really bad, so I better robot with no feelings. :)

Hamad Shah
30
Hamad Shah 2013.02.13 21:38  
Stairng at charts on screen and having feeling like you are losing money without being into market :)
12
To add comments, please log in or register