Psychology 4 Steps to Stop Anger and Revenge Trading!
It happens to all of us: after a bad loss based on a sloppy decision we just can’t stop that building up poison inside of us. Anger and revenge makes us make some more sloppy trades and in couple of minutes the trading account in empty and you cannot stop yourself from shaking!
Controlling your emotions is almost EVERYTHING in forex trading. No reliable strategy will save your from self-destruction if you don’t learn how to control that wild monster inside your heart.
Angry trades will not only make you not see clear, but also try to hunt down the possibilities to make the lost money back right away. Revenge is a powerful motivator. It is so controlling that it often clouds our rationality. The worst part of it all – in most cases you don’t even know you are engaged in angry trading until you are completely broke!
How can you stop feelings of revenge against a bad trading decision? Below are tips on how to stop the self-destruction before it actually begins.
1. Think about your family
Before throwing in more money into unjustified trades, think about people in your life. Imagine their disappointed faces when you tell them how you lost couple of hundred dollars, but then started trade hunting to get the money back and lost couple of thousands. This is the first step to take some heat off and get you away from the computer.
2. Rationalize
If disappointed family doesn’t do anything to your heart, try stopping yourself by analysing the situation more closely. Speak out loud what had happened. Analyse each step and say your feelings out loud. The moment you pronounce that you are trying to make the money lost back, you will stop anger trading.
3. Decrease Size
If you still cannot keep your hands from trading, the least you can do is to decrease the size traded. This way you will be able to take your mind off serious trading for a while and become sane again. Give yourself time and go back to appropriate size trading only when you are truly ready (like in a day or two!)
4. Add Amount You Lost
If you lost a trade, you might want to add the amount you have lost back to the account. It is surprising how easy it is to become normal again when you don’t see your account with losses. It doesn’t mean you should trade with it!!! It is only meant for visual stimulation!!
