In trading, there are several emotions that you have to be aware of and if possible, ignore them. Here is a list of them:
Anger – Do you ever catch yourself yelling out loud or cursing at the screen? Or complaining about the market like it is out to get you? This is a very common and dangerous emotion. It can easily destroy your belief in trading and the belief in having an edge when trading.
Greed – You see that your trade is up and you start picturing the items in your dream list. You think to yourself “if I could just make 50 % more” but what often happens in these situations is that your profit disappears and instead your trade is now under water, all thanks to greed.
Fear – Fear of losing money can make traders skip on a perfectly valid trade. It might also make traders take a small loss on a trade, only to see it turn around and give profit when all actually they have taken the correct step of entering a stop loss which was never taken out.
Frustration – Why did I not take it? Why do I always take the losing trades and not the winners? These are very common questions a trader asks himself many times during a trading career. This frustration can destroy the motivation and lead to a previously mentioned emotion; anger.
Disparity – Giving up or feeling like you are taking 3 steps forward and 2 steps back. Not being able to see the light at the end of the tunnel is one of the biggest reasons most trader give up.
Pain – If you learn to deal with all your emotions such as fear and greed then you will hopefully never experience pain as this one is a tough pill to take. Seeing your hard earned money get swallowed up by the market is a financial pain and an emotion we can all do without!
No trader will ever go through a complete trading career without experiencing at least one of the mentioned emotions. Many will even experience them on a daily basis so it is therefore very important to deal with these emotions when beginning your trading career. If you don’t learn how to control your emotions then it can and most probably will result in an unsatisfactory trading career.
Source : stock-market-strategy.com