I am not talking about the emotions you feel while you’re in a trade. But the feelings you get before a trade. I’m sure you have read over and over to trade with zero emotions but have you really been successful? I know I wasn’t. Unless you’re a rock you’re going to feel some sort of emotions when placing a trade. It is just human nature.
So what is the secret to really trading with zero emotions? Simple. Having a proven strategy. I’m not talking about some guru’s strategy you picked off the internet for a few (thousand) bucks but one that you know and truly understand.
Can you sit in the hot seat and watch your strategy unfold consistently? Maybe you’re buying lows and selling highs, shorting extremes, or just trading purely off of feel or chat room shout outs. How long can you survive trading these strategies before you throw in the towel?
I can remember my first day trading account with a sketchy offshore broker. I was so determined to be successful. After a few “tries” I was finally on to something where I was consistently green even just $20 a day. But even towards the end of my time with that broker I can remember literally shaking at the market open. Even though I had mapped out my trades for the morning I was so scared of losing. It was exhausting! My nerves were shot. I had to take a break for a couple months and really dig into my data to understand what I was doing.
Why did I get so nervous and trade on emotion? Because I had no real strategy. I could not sit in the hot seat and see it unfold before me. My “strategy” of blindly swinging at the market was not sustainable. I had no plan.
So what changed? I can tell you once I found my edge, my strategy, taking a trade was no longer a butterflies in the stomach moment. I have been able to outline my strategy to the stocks I trade, the time of day I will trade them, and the pattern I look for. For me it’s predicable and profitable. I was no longer questioning my self “is this going to work?” So to answer the age old question of how to trade with zero emotions? Find what REALLY works and stop stabbing the market with randomness because she will shoot back with out hesitation.