For whatever reason, we all go through swings in emotion from time to time. But if you let those emotions get in the way of your trading… you might as well just flush your money down the toilet…
Because it won’t end well…
Listen, sometimes it’s best not to trade at all if you are in a really difficult place, emotionally… but for the normal level of daily human emotions, you must get your mind right. If you don’t, you’ll end up trading on tilt — something successful traders avoid at all costs.
With that being said, I am going to share how to create the mental toughness you need to be a consistently profitable trader. But first, you need to understand what emotions will affect your trading.
Fear and Greed
Greed is basically an insatiable craving or desire to have more of something… we all deal with it, but it has no part in your trading.
Greed is the thing that can turn a winning trade and turn it into a loser. It can even be as subtle as just hoping for a little more profit from a trade.
You have probably been in a trade that hit your target but you got a little too wishful and started to think irrationally, believing the stock could run even further…
… looking for any reason to justify the stock will go further… never satisfied with your profit… just to see it completely retrace the entire move and watch all of your profits evaporate into thin air.
Fear is on the opposite side of the emotional spectrum. With fear, you will take your winners off too early because you are scared that you will give it all back…
Just to watch the stock go to your target.
Fear can even hold you back from placing a trade at all… or from starting your trading journey altogether.
Now while these emotions can ruin your trading career… you don’t have to let them.
Become Mentally Tough
It’s so, so important to stay calm and level headed. When you let fear and greed in, you lose the clear and rational thoughts that let you make disciplined decisions.
One technique that many successful traders use is to visualize their trades.
To do this, you would simply take the time to close your eyes and visualize your planned trade.
Visualize everything… Placing the trade, setting your stops and targets, the stock price moving and hitting your target, and lastly taking your profit.
Doing this will help you when you’re trading live, where emotions are involved.
And no matter how much control you gain over your emotions… you can’t make money without a trading plan.
So how do you actually remove the emotions from trading?
Have specific guidelines in place.
I use a system with clear cut rules.
Having a defined edge helps me trust my setups and take trades without fear. As well as letting the trade play out without getting greedy and hoping for more.
Take a look at this video where I talk about my preparation and planning. Click here.
How much more emotionally stable do you think you would be if you knew your trades were based on a successful system?
My systems also keep me from getting emotional because I plan out every trade…
If you take the time to plan and write your trades out in detail, the more likely you are to stick to the trade without making mistakes based on emotions.
Use as much detail as possible…such as the reason for the trade, the exact entry, exit, and stop, etc.
I do this with every trade and I share my trade plans with all of my members. I even make videos showing the setups on the charts with the entry, stops, and targets.
If you want to find and learn a profitable trading system, all you have to do is click here.
And if you want to want to step up even further and become mentally prepared for each trading day, then join me below.