Mental State & Trading with Emotion

by FXChris on February 23, 2012

Forex Trading Room / Daily Analysis Free sample excerpt from live SmartPip Forex room Feb 23rd, 2012

As we were awaiting a few of our setups to materialize, a topic came up that is incredibly important for any kind of trader, Trading when there are Emotions swirling (good or bad) and how it can seriously impact your results.. Since we had time to kill anyway, I broke off into a live lesson to discuss it more in detail.

One of the most important aspects of trading is having a solid plan, having the discipline, and courage to stick with that plan through a win or a loss. The one variable that can sway that discipline and cloud a Forex trader, or any traders judgement is Emotion. Whether you just had an argument with your spouse, a love one passed away, even a pet, or perhaps something wonderful happened with your life. It really does not matter, if there is anything at all of great emotional weight that occurred, it CAN and DOES affect your Mental State and therefore your trading behavior. You need to be able to recognize this situation very quickly and decide if it is worth it or not to trade during this time, as you could have dire financial results if you choose wrongly. Keep in mind this lesson was unplanned and not scripted.

Want to learn to plan your trades completely every day and see lessons like this as time permits live? We do daily pre-European Forex Market Analysis and trade planning in complete detail, these free clips are just random excerpts to give you an idea of some of what we do in our live class. Come join us!, Hope to see you guys at SmartPip.com

@FXChris
@SmartPip

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