After knowing what destructive emotions are, let’s continue our discussion about kind of emotions when trading.
Favorable emotions
Always believe in the trading system and the money management system used is very beneficial emotions. You will always follow the system. So, your trading execution is accurate according to the system rules that you have made. It is this emotion that you should practice before actually plunging into the real market.
Conversely, lack of confidence in the trading system will cause the execution. You do always deviate from the rules of the system. In the end, it will affect the stability of your emotions. Discipline is very important in trading, and this can be measured by the quality of execution following the rules of the trading system.
Emotional Management Methods
To strengthen beneficial emotions, you must reprogram your subconscious mind. You have to stick to the trading system that you have created. One way is to instill orientation in a trading system, not in a trading position. It doesn’t matter whether the current price movement is going to break high or break low. If your trading system doesn’t show buy or sell signals, then you shouldn’t react.
Besides, always instill that the trading system and money management system that you use the results you will get in the long run.
You can do this shift in thinking with:
You’re more satisfied if the trade matches the trading signal rather than satisfied because it’s just profit. You will always look at the development of the Balance Account in the long run rather than seeing the results of each trade. You will be afraid of losing a trading opportunity according to the trading signal rather than afraid of losing a trade.
According to Investopedia, if you always think negatively, with any trading system, you will find it hard to make profits in the long run. Also, it takes practice and time that is not short to be able to regulate and control your emotions in trading.
Read more: 3 Types of Stop Loss to Minimize Your Trading Risks
