Are You Emotional or Erratic?
#518: Are You Emotional or Erratic?
In this video:
00:27– What type of person makes a good trader?
00:50 – Having a strategy and controlling your emotions
01:26 – We all see and know reactive people
02:37 – Have a plan and stick to it
03:21 – Daily trades and Weekly Webinars
04:05 – Consistency is key
04:37 – Book a call to chat with us
04:51 – Blueberry Markets
Emotional and erratic. People will never make good traders. To trade properly, you’ve got to get your emotions under control because it’s all about the head. Let’s get into that a more right now.
Hey there. Traders! This is Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 518.
What type of person makes a good trader?
And quite a blunt lesson today in some ways. And it may upset a few people, but, you know, possibly that’s the point. And if you want to give yourself a good chance of being a good trader, you have to control your emotions. You cannot be one of these erratic, emotional, responsive type of people because the chances are you’re not going to do very well at trading.
Having a strategy and controlling your emotions
You see, trading, we know, is all about having a strategy and understanding what you’re doing, but it’s all about understanding. It’s also about understanding your mind, your heart, your emotions, because the reality is that we’re trading with real money and emotions come into play. You cannot hide that. You know, you can get away from the fact that. If you’re on demo, you may not quite understand this yet, but if you’re live trading, you will know that emotions come into trading and become a big part.
So you need to understand the emotional, psychological side of things, plus your strategy and how the market works and put that together.
We all see and know reactive people
Now, look, we’ve all seen, you know, emotional, reactive, erratic people. You know, you see them if you’re driving, you see them on the road and they had blowing a horn for something stupid. You see people at airports, you know, when emotions start getting a little bit much and people get a bit stressed and they go to do dumb things.
You see that around like, you know, you seen it in the last few years with all the stuff that’s going on in the world. And if you’ve got any slight opinion or different to the, you know, the government or mainstream people have been smashed for it, well, they’re just having their opinion. And much of the time they’ve probably done more research than everybody else anyway.
So but people find it very easy to be emotionally reactive rather than actually stopping thinking and in doing things properly or just letting someone house have a different opinion, it’s perfectly fine. It’s nothing wrong with that at all. So what makes the world go round? It’s what makes trading go. You know, why is why do some people see the market moving up and all those people said moving down? So you’ve got to get that under control.
Have a plan and stick to it
Really important because when it comes to emotions in trading, you need to also have some form of plan and stick to it as well. You know, people that just suddenly go. The six hour charts are rubbish or last week they failed so and I lost money on them. So I’m never going to look at them again.
Hey says mate, why would you do that? You know, if your strategy is to look like mine, let’s say twice a day, and I always look at the daily charts and at the same time I look at the 12/8/6 and then that’s at 5 p.m. New York time, 5 a.m.. I’m always there, you know, always on the forum site.
I always there looking through the shorter time frame. So the two, four, six, eight and 12 at that 5 a.m. changeover. And we’re doing that without fail.
Daily trades and Weekly Webinars
You know, every day since 2009 we publish our daily traits we’ve never missed one day. Every week we’ve held our live webinars. We never miss them. We don’t go all. Last week it was a terrible webinar, so I’m not going to do another one.
Last week the daily trades had a losing week, so we’re not going to bother looking this week. You know, that’s a crazy thing to do. And likewise, people get very caught in the emotions when it comes to risk management as well, and they’ll go, Oh, I had a losing week. So this week I’m going to double up on my risk of something like that.
I’m not about a stop loss in or I can’t be bothered looking at the, you know, the daily charts this week. Real dumb things like that that really do not aid you to be consistent.
Consistency is key
Because consistency relies on strategy, it relies on common sense, it relies on turning up, it relies on your plan, it relies on sticking to it.
And all of that really comes back to you and your mind, your mind, your emotions, your heart. And because if you can’t get that bit right, then forget the rest of it. Really, if you can and you are willing to work on that and willing to, you know, work on a plan and stick to it through the good times and the not so good times, then you need to be in touch with us. Give us a send us an email.
Book a call to chat with us
You can also book a call to have us chat to either myself or one of my team. I’ll put a link here on this video on podcast, the where you can go and do that. It’s TheForexTradingCoach.com/Call
And also if you’re out there looking for a really good broker, I can highly recommend Blueberry Markets over in Australia. They offer the Metatrader 4/Metatrader 5 platform. They have lots of different markets available on MT5 of course, different timeframe. Charts are really good people, really, really good people. And again, when it comes to response and helping their clients, they’re absolutely unbeatable.
So I hope that helps get your emotions under control, Relax, enjoy your trading, look at what you’re doing, stick to it, turn up, be consistent.
It will massively help you. I see This time next week. This is Andrew Mitchem at the Forex Trading Coach. Bye for now