Why Traders Need to Control Their Emotions

[Trading With Larry Benedict]( Please Note: Our offices are closed on July 4 and 5 for the Independence Day holiday. The customer service team is unavailable until Monday, July 8. Why Traders Need to Control Their Emotions By Larry Benedict, editor, Trading With Larry Benedict Keep your emotions in check. You’ll find that advice in just about every trading book you read. But it’s much easier said than done. Emotions flow through us no matter what we’re doing, especially when it comes to the markets… Compare the euphoric high of riding a winner… to the crushing low of taking a losing trade. For some, the swings between the highs and lows are enough for them to swear off trading forever. The truth is, it’s almost impossible to take emotions out of trading completely. So instead of trying to turn yourself into a robot, you need to find a better way to manage those emotions. And that all boils down to how you approach your trading in the first place… Recommended Link [Legendary Trader: “Panic Set to Begin on August 1st”]( [image]( According to legendary trader Tom Gentile, we’re about to see [the biggest panic since the dot-com crash.]( Tom saw the rise of Bitcoin in 2013… He predicted the Covid crash of 2020... and after the crash, he picked Google, Apple, and Tesla before they soared 188%, 236%, and 1,181%. He also predicted the rise of Nvidia back in 2019, when he gave his readers a chance to turn $10k into more than $320,000. That’s why you must see [his critical AI warning for August 1st.]( [Watch it here.]( -- Choose Your Risk Management Emotions can get the best of you if you’re trading more than you can afford to lose. For example, say you had $10,000 in your trading account, and you decide you’ll go all in on one trade. Of course you’re going to be nervous! There’s a big chance you’re going to blow up your entire account with just one trade. Compare that to another trader with the same account size who risks no more than $200–300 on any single trade. It’s going to take an incredible string of losses for the second trader to lose just a fraction of their account. That’s hardly enough for them to worry about. That’s why establishing clear risk management rules before you place your first trade is going to take a lot of the emotion out of your trading strategy. You need to know exactly how much capital you’re prepared to risk on any trade – and stick to it. Set Realistic Goals Another equally important factor is setting realistic goals. This goes hand in hand with risk management. Too often, new traders come into the markets and set their goals too high. So they let their greed get the best of them and chase every move… hoping for a big winner. Inevitably, each trade then becomes a roller coaster ride. Before they know it, they’ve gone through all their funds and are out of the game. And even if they want to start trading again later on, those big losses will leave emotional scars. Instead, I’ve learned from decades in the market that you need to do the opposite. Get into the habit of taking lots of little profits as often as you can. Not only does it build your account size, but it also helps keep your emotions in check. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. For example, if you aim to make a quick $200 profit per trade, then you’re not going to get as emotional as you would trying to hit a home run. Yet soon all those $200 profits start to add up – giving your account size a real boost. Then when you aim to increase your profit target to $300 or $500 per trade, it’ll be less of a big deal. You’ve already trained yourself to take profits off the table regularly. Now you can put your efforts into constantly refining and improving your trading strategy rather than tying yourself up in knots with each trade. Happy trading, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](