Between natural disasters, shutdowns, and rallies, there is no argument that we are facing some MAJOR volatility in the markets right now. Of course, most of us would like to keep our emotions out of our trading, but lately that seems impossible.
We value your opinion and would love to hear how you are coping with the current volatility, so be sure to share in our comments section.
After the trader has learned the mechanics of trading, we then enter into the world of Greed & Fear.
When you have your trading system in place, and know all about technical analysis, money management, probability, risk to reward and all the other components needed to be a successful trader, we are then introduced to our two friends Mr Greed and Mr Fear.
Welcome back to guest blogger Mo Christiensen of TradingAdviceBlog.com. Mo has been a full time trader of the emini S&P 500 futures since 2003 and through his blog he works with new and developing traders to help them speed up the learning curve to trading profitably. In particular Mo specializes in the important area of emotional management.
As traders we've chosen an intense profession, one with a very high potential for stress. The simple act of putting our money on the line, with an uncertain outcome, creates an emotional force which we need to know how to handle. If we don't, the emotional excitement of fear, euphoria, anger, disappointment, and other intense feelings, clouds our judgment and affects our ability to stay in the opportunity flow of the market.
Trading with these emotions in play, is akin to driving in a storm without windshield wipers. We can't see the road clearly, and accidents are very likely to happen!