Emini Trading: Emotional Challenges & Weekly Update!
I appreciate all the feedback from our last video: The 5 Point Challenge. I’d like to go a bit further with that by discussing emotions. Before I do, PLEASE watch this 30 second video:
Very funny video for sure. In fact I remember watching that video on CNBC TV when it first came out and cracking up. Hilarious as it may be, it’s very true. Trading, day trading to be exact, can be an emotional ROLLER COASTER!
Folks, I’ve trained a lot of people and I can tell you a lot of the steps most of them will go through. One of the most important one is the emotional roller coaster that is so common It probably fueled the above E Trade Commercial. As traders we will have to deal with losing trades that are IN YOUR FACE almost every day! Remember, your traditional business does not run like a day trading business!
Hamburgers are bought for 25 cents and sold for a dollar! Cars are sold at MSRP and bought at invoice. Companies do not buy to sell something for less money-unless they have to. It just doesn’t make sense and businesses will fail if they take a loss on every transaction they make.
Day Trading IS a business, but it’s a little bit different. We HAVE to take losing trades. It’s PART of the business. And it’s an expected part of the business. Accepting that is easy to do. Dealing with it emotionally is the hard part. This is the big disconnect right here. This is where some traders FAIL and blame the system developer, or blame something else. Sometimes a prudent and persistent trader will realize his/her mistakes, blame themselves for being too emotional, LEARN FROM IT, and move onto become a successful trader. Another disconnect here as well, but that is an entirely different blog post.
When a trader finds a way to take emotions out of his/her trading, their trading career will usually skyrocket! I know this from the hundreds of students I have taught, and of course my own trading experiences!
Hence, The 5 Point Challenge! Remember, practice makes perfect? Well, perfect practice makes perfect! Keep doing it until you get SO GOOD at it, that emotions are no longer a trading factor for you!
One more thing – Al has one more special laying around from the recent Webinar. Get with him ASAP if you are interested!
Enjoy the weekend!
David Marsh
Trading Emotions & Weekly Video Update
Don’t forget to check our emini trading video library. And you can catch up on all our daily trading videos by visiting our YouTube channel.