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How to trade without emotions Using trade log Calculator Online

The inability to enter into a trade also demonstrates a lack of discipline in sticking to the trading system. Either it’s a “go” for the trade or it’s not. If a trader’s system has too many poorly defined areas, it should be changed. Trading should be mechanical; either the squares are filled-in or its no trade. Simple. But ego wants to shine and show that it is special and better than some mechanical system; that the trader is better than that.

Also, many traders may be trading money they can’t afford to lose. This puts even more pressure on being right (not being wrong) and that is why trading capital should be assets—that if lost—won’t affect the lifestyle of the trader. Not only that, a good system establishes a minimum account drawdown limit; it’s like setting a stop-loss on your trading account. If you hit a predetermined drawdown level, trading comes to a stop until real changes are made-either in the system or the trader’s mental-emotional outlook.

But just talking about these things is not enough. Most of us aren’t very good at giving ourselves a valid self-appraisal. What we need to do is establish a frame- work of not only how to trade our system but also how to manage emotions and mental discipline. A trader needs to establish procedural constraints and then learn how to match feelings and thoughts to the trading process. But how does a trader not only train themselves in the discipline of trading but also how to validate that they are indeed being honest in self-evaluation of what they are doing right or wrong?

One way to start placing emphasis on the mental-emotional aspects of successful trading is to keep a detailed trading journal, which, among other technical things, also employs a column called “Psyche”. After each trade is completed, successful traders review and grade the trading process. Some ideas of the questions to ask in this regard might be: was the trade analysed in accordance with the system? If not, why not? How did the trader feel about the trade before entering? After. What did the trader do during the trade that was not consistent with the system? If so, why? What would the trader do differently with a similar trade? How would the trader rate confidence in the trade? At what point did that confidence weaken? Analysing these questions will help the trader focus on areas that need to be examined and to develop a strategy to deal with these weaknesses. Once identified, they can be overcome. But without the awareness that there is a problem, emotions will run the show.

Being a trade Log journal is one of the primary functions of the Forexcalculatoronline.com