5 Ways to Avoid Emotions Interfering with Trading Decisions

1. Don't Set Your Goals Too High

For example, if you want to get fit, and you set a goal of doing 100 push-ups on the first day, you might give up quickly. However, if you set a goal of doing 1 push-up a day for 100 days, isn't it easier to stick with it? Therefore, before trading, we shouldn't set outcome-based goals, but rather process-oriented goals. For instance, to eliminate emotions in trading, for the next four weeks, whenever I see a big bearish or bullish candle, I aim to not chase the market at least 70% of the time. This is an achievable goal that allows for gradual improvement of personal issues;

2. Relax and Think Calmly

Learn to pause, relax yourself, and think calmly. When you feel emotions rising, halt trading activities, close your eyes, take a few deep breaths, and focus on the sensation of your breathing. This simple exercise can help calm you down to some extent, allowing you to view the market situation with a clearer mind. Here, I can provide you with a mindfulness practice audio to help you quickly calm down!

3. Self-Soothing

Trading is not everything in life; you play various roles, such as a wife, husband, or teacher. Even if you make a losing trade, it does not affect your ability to be a good wife, doctor, or teacher. Thus, a losing trade does not lead you to a dead end. Even in failure, learn to first accept and affirm that you did not make a mistake; it could very well be a probabilistic stop loss. Learn to reward yourself with small positive tokens instead of negative ones.

4. Seek Support and Help

When facing trading failures, you can seek out traders who resonate with you to share experiences and insights, finding inspiration or encouragement from others' experiences. Avoid only befriending those who flaunt their profits and remain silent during losses.

5. Self-Awareness of Energy Levels

Before trading, clarify your daily energy levels—when you feel strong and when you feel weak. For example, if you notice that you are easily fatigued in the morning but energetic in the afternoon, it is clear that trading should be scheduled for the afternoon, while the morning can be used for other activities.