Emotion in trading must be killed

March 25, 2009 – 4:17 pm

The best way to take emotion out of trading is to stop caring if you lose and STOP WATCHING your P/L numbers.

You must desensitize yourself to both losing and winning. In the same manner a mugger sprays mace in his own face before bed.

What you see as arrogance in others is not merelyconfidence….but more importantly a callousness to losing/risk.

The greatest warrior is one, who in his own heart, knows he is already dead. 1st Defeat fear . THEN PROCEED with your battles, good sirs!

Get there. I don’t know what it will take for you to get there, but you have to.

p.s. same goes for entrepreneurship and poker….as usual.

  • If trading through 2008, isn't the exact same as mace in the face to a trader...I don't know what is.

    ...consider me decencitized.
  • The best poker players are those who have no regard for cash at all. If you can flush a few hundred dollars down the toilet without flinching, literally, you've gotten to the point when you can view cash as a tool and then you can use it without allowing it to affect you emotionally.

    Doyle Brunson once said something to the effect of he'd bet everything he owns if someone gave him a 51/49 edge in flipping a coin. If you can remove the emotion from the situation and see that you have an edge and make the decision based solely on that edge, purely on the logic of the situation, mathematically you'll win in the long run.
  • bankdraft/Leigh Scott
    I only know poker.......wear sunglasses....you will look cool....boosting your confidence and calming your emotions...oh, and hope for a good draw...

    A new trend in the trading room....
  • Callousness to losing/risk is a great way to describe it. Getting emotion and becoming obsessed with every move in your P/L is a surefire way to lose.

    It's different for everyone, but I think in order to get there you need to trade an appropriate size, have developed your own style of trading that you are comfortable and confident with, and have experience.
  • Agree 100%. Will steal for a post ;)
  • Volkman
    Are you being vetted to head a major government agency? Your mindset appears to be spot on for a position in the new regime.

    You left out one point - no matter how much you are losing/spending, always stick to your story and tell everybody you are UP / cutting taxes / reducing waste / paying down debt... whatever illusion you have created in your mind. Makes you feel better - and if you read it eloquently enough off a teleprompter (or TV) people might actually believe you.

    Love the blog BTW
  • The key, obviously, is always use the word "investment" when you mean profligate, politically directed special interest spending.

    The contempt they must have for us...
  • Actually the key is NOT killing your emotions.
    But OVERCOMING them with something even stronger from w/in.
    That way, if you lose - you don't even know.
    And when you win ...ALL THE EMOTIONS COME OUT AT ONCE.

    Big Daddy
    PS Whooooooooooooooooo!!!!
  • Mike Ehlers
    The old rule of fighting - don't fight an ugly guy, he don't care about being hit, so he is likely going to win...or.... be the ugly guy !!
  • Classic
  • I did not know muggers did that.

    It's in the training video, I expect?
  • Acquired taste.
  • Matt
    word up
  • To your mother
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