In this lesson, we discussed strategies on how to handle emotions versus trying to suppress or eliminate them.
But while not trading quantitively you still need to have hard-fastened rules in place to guide the decision-making process and manage risk. A trading plan. This is the first step towards mitigating negative emotions and emphasizing positive ones .
If you reach this point, the first piece of advice is to acknowledge you are struggling and take a break away from the markets. Get out of the fire. The time-off is almost certainly to make you feel better right away. Once you have been able to decompress, then it is time to get at the root of problem.
To be clear, good trades can and will be losers just as bad trades can be winners. The idea is to keep yourself winning and losing on only good trades. Stopping to make sure you really do have conviction on a trade idea will help ensure this.
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