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Flatline Your Emotions

On some level, the highs and the lows are what trading is all about. It can be a rush when your strategy works and you make a successful trade. It's these emotions that keep you trading Forex and not investing your money in the safety of municipal bonds. But it is not advantageous for a trader to get emotional over a trade. It drains critical energy and distorts the decision-making process. A disciplined trader should understand all outcomes of a trade before it is entered, and there should be no real surprises. I know it's impossible to become a trade droid—and who would really want to? But the more a trader can control his emotions, the better he will become.

I worked with a trader who could never handle the anxiety of trading. Strangely, he was also the most disciplined trader I have ever met. He prepared every trade with meticulous analyses and carefully considered all possible results. But you could always tell how his trading was going simply by how he looked. When he was in a winning trade, he was well-dressed and clean-shaven. When he was losing, he looked like he had slept in his clothes. I told him to find a middle ground for his emotions, because at this rate he would burn out at an early age.


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