Futures For You by Carley Garner
How can traders improve their ability to manage emotions and stay calm under pressure?
The most influential factor in trader success or failure is the ability to manage emotions. The inability to keep fear and greed in check can lead to financial and psychological devastation. After all, speculation is not a 9-to-5 venture in which traders are paid to show up for work. It is performance based; the capacity to produce income is contingent on the ability to function efficiently and behave logically.
Emotional traders are more likely to make poor decisions driven by revenge rather than analysis. Such a mindset can lead to overzealous trading, excessive risk taking, and a disregard for the intended strategy.
Unfortunately, the ability to stay calm in both good and bad times is difficult to learn. Those who have mastered the art were probably born with a chunk of their proficiency, with the rest earned through experience.