Limits, emotions and today’s morning trading session

Every trader who ever put real money in stake know how it feels when this real money are in play. Instant changes of emotions is a natural process of trading. We can't turn them off, we just have to be aware of them. Being aware of means that we know that our emotional perception has changed and we should act according to our pre-set scenario's. We should have these scenario's for every possible situation to which these emotions might put us and I am talking about the two biggest beasts: FEAR and GREED. Because if we know in which state of emotion we are we can do certain steps to get back on track so we can fully focus on actual performance. The basic principle behind this is same for everyone – we all have emotions. The difference between every trader though would be in how easily the trader can handle and overcome these emotions. We all have different outcomes, reactions and some people are able to take a lot of emotional baggage, some not.

For example I do something what I call "EMBR" after every trade whatever the outcome is. EMBR means EMOTIONAL BREAK. First I have to specify in what emotional state I am currently in(emotional journal). My state of mind can have three different states A,B or C:

• A is usually the one when I loose in a trade by not following my rules
• B is usually the trade where I lost but I followed my rules
• C is the trade where I won the trade

When I know in what state I am in I can adapt one of the "having a break" scenario's to get relaxed again. This scenario consists of my PERFORMANCE STATEMENT (to find out more about what performance statement is read great book called 10-Minute Toughness by Jason Selk), breathing (usually three times 6-3-5 which means inhaling for 6seconds holding for 3sec and exhaling for 5), muscle shock exercise and possible positive visualisation. Of course the amount of things I do depends on the GRADE (A,B or C).Ok,… so next time you will be rushing for the next trade try to remember if emotions are not playing the game on their own.

My trading for this week is finished. My target for Friday was hit very soon in the day so I can pack it up and relax. Today I have traded two trades. One in GBPUSD and one in EURUSD. Overall 16 + 16 = 32pips. Both trades hit the take profit targets very soon after my entry so not much to talk about in terms of EMOTIONAL DIFFICULTIES :). For more see the image sequence.

Have a great weekend.