• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

To Empower Your Trading, Do This…

By Kurt Osterberg · On April 18, 2018

Emotional management is crucial to the ability to focus on what matters most in the trade. For instance, planning, stringent rule following and keeping commitments are some emotional management skills you’ll want to hone.

There are those who would say that you should trade like a robot, meaning without emotions.  They contend that, if you can do this you would be able to sidestep fear and greed.  Well, if that were possible, you could avoid feeling any of the negative emotions that drive unwanted bad behaviors.  However, what is also true is that you would be void of positive powerful emotions like inspiration, determination, joy, love and curiosity that substantially support decision making and good behaviors. Positive emotions lead to good decisions and behaviors that take you in the right direction, just as negative emotions lead to bad decisions and behaviors that take you in the wrong direction. 

The research is clear that emotions govern decision making, not rational thought, despite what many think. Countless individuals contend that logic is what determines how and what they decide; but when you make a choice of which way to go on just about anything, especially important items like businesses, cars and houses, the final determinant is how you feel.  So, while taking emotions out of the trading equation, you would allow you to avoid those pesky emotions like fear and greed, you would also not have the advantage of those wonderful emotions that assist you in making the right decision.

Emotions drive behavior, and the power of emotions and how they impact directly and massively upon what you do is very valuable.  Consider just about every rule violation you’ve ever come upon; whether moving a stop, chasing a trade or whatever puts you and your account at greater risk of loss, aren’t fear, anxiety, greed, and anger at play just before you engage in that rule violation?  You felt the fear before you moved the stop; you felt the greed before you chased the trade, or you felt the anger before you exited the trade prematurely.  Actually, emotions, just like thoughts, are energy.   If you were hooked up to a fMRI, a functional neuroimaging procedure using MRI technology that measures brain activity by detecting changes associated with blood flow, the technicians would be looking at colored pictures of emotions, thoughts and other brain functions in real time.  So, a big part of the trading process is emotional management or energy management.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.