| To trade without emotional involvement. It | | | | first step to the anger mentioned in the |
| is a necessity, and yet it is virtually | | | | previous paragraph. The first curl in a |
| impossible. Certain things in life just | | | | spiraling out of control, that will likely |
| bring out emotion, like making decisions that | | | | break you in the end.Anger isn't he only |
| effect your financial outlook. There are two | | | | emotion the markets bring out in us. The |
| things that make this uniquely harder for | | | | opposite of anger is euphoria, everything has |
| traders, than for non-traders. One is, we | | | | gone your way. Some trades have gone beyond |
| are likely to be more involved in our | | | | your wildest expectations. And ca-ching the |
| financial well-being than non-traders. Some | | | | money is rolling in. Up go your trades, and |
| people would even say our priorities are out | | | | you are on a roll like no other. You have |
| of whack, and perhaps they are right. But | | | | figured it all out, and the market is yours. |
| nevertheless, that is the way we are, and if | | | | She loves you, just you, and will do what you |
| we weren't that way we wouldn't be traders. | | | | want. Again out go the principles that got |
| The second factor that makes emotionless | | | | you there, and out goes your winning streak. |
| trading very difficult is, this is likely to | | | | And viola you have fallen into the anger |
| be our passion. We aren't singers, | | | | trap. Or at least the recoup trap, you beg |
| humanitarians (hopefully we do share our | | | | forgiveness, if the market will just return |
| wealth), writers, politicians, spiritualists, | | | | you to where you were before euphoria made |
| we are traders, and are likely to be | | | | you greedy. You confess your sins and beg |
| passionate about it. Many of us to be | | | | for mercy. But again the market has no |
| honest, love it. Love it like Pittsburgh | | | | mercy, the market cares not for you.In my own |
| loves their Steelers, irrational, all | | | | experience it is after this roller coaster, |
| consuming, eats us up inside love it. And | | | | has cut my trading funds in half, that I |
| yet we know in our heart of hearts, or more | | | | begin again to trade without emotion. So how |
| importantly in our logical, rational part of | | | | did I get to the point, where there never |
| our persona that we can't be emotional about | | | | happens again? Where the market does not |
| it. Not be emotional about that which we | | | | elicit anger or euphoria. Well I don't think |
| love?? It is one of the hardest things in | | | | you ever do. It is very hard not to have |
| the world. That is why Doctor's don't treat | | | | emotions when you get pummeled or a positions |
| family members.One of the easiest traps to | | | | breaks to the upside wildly. So what do you |
| fall in, is to be angry at the markets. Like | | | | do?You admit it, you acknowledge it, you are |
| a new love, nothing can get your hackles up | | | | aware of it. You say ,yes that just ticks me |
| so much as that which you love. And when the | | | | off, why would that trade do that. And you |
| markets fail you, that love has disappointed | | | | go form there. You decide what to do, if |
| you. And when love disappoints rage can | | | | anything after you acknowledge your emotions. |
| easily follow, just ask your teenager. It | | | | You stick to your trading rules. You can |
| really fires that special spot in your belly. | | | | then go back and learn from the event. Which |
| The problem with becoming angry at the | | | | is the real value of mistakes. You can |
| markets, is you want to get back at it. But | | | | analyze what went wrong, compare it to what |
| to traders the market is the epitome of | | | | has gone right in the past. Perhaps change |
| unrequited love. The market has no emotion, | | | | your rules, perhaps accept that things are |
| you are fighting a losing battle, if you | | | | going to go wrong in the game of trading. |
| think you are going to get back at it. | | | | And that is the price you pay for the right |
| Because it doesn't care. The bad thing about | | | | trades. But you NEVER make a trade based on |
| this is that you are likely to trade horribly | | | | emotion.You can still love the market, the |
| because of this emotion, if it goes | | | | game of trading. I do, and then I hate it |
| unchecked. You will override your systems, | | | | too. I think about my sailboat beckoning, |
| you will trade without thought, you will in | | | | and want to bag the whole thing. And that |
| fact mirror the very thing you are trying to | | | | day will come. But the difference is I love |
| defeat. Emotion not thought out, which is | | | | the markets from a distance, from a |
| what huge market swings are.The second | | | | reflection, I love it as an accomplishment of |
| pitfall of anger is similar to the first, but | | | | man. It has been a huge part of my adult |
| perhaps not as devastating. You are not | | | | life, and has shown me every aspect of human |
| angry so much as you want to recoup your | | | | emotion, and has taught me one very, very |
| losses. Like a horse bettor who got skunked | | | | nice lesson, patience.CT Larsen has been |
| at the track,, and borrows money from Uncle | | | | trading stocks since 1990. Now trading large |
| Rich, you increase your bets, throw out money | | | | cap stocks exclusively. He has recorded |
| management principles and press to recoup. | | | | three straight years of greater than 50% |
| Financially this can be more devastating than | | | | annual returns. |
| anger all on its own. Often though it is the | | | | |