A lesson on Emotion
Updated
Hi traders,
If you are here for the first time, please take some time to read all the preceding ideas. If you do not read the previous ideas, then you might not appreciate the flow.
At the moment, Bulls and Bears are fighting it out to gain control. We must watch things closely to gather clues/facts as to the potential outcome. Our trades depend on our findings.
One of the most important thing to master when trading is handling our EMOTION. That is what we are told all the time. But what is not mentioned is how we are going to do that. The current situation with EURUSD is exactly the kind of example we need. Those buying are anxious now that price keeps falling while those selling keeps asking when price will break the support. A lot of money is involved.
I think the most important thing to keep emotion in check is NOT TO PICK A SIDE when trading. I have said this before. Its futile trying to predict where price will go. Once you develop a 'Conclusion', you will eventually tie yourself down. My advice is, never try to pick a side. Instead, have an open mind. This way, you can appreciate better the possibilities whenever new information is received.
As traders, we are not concerned who is winning/losing. Often, people get emotional when LOSING. The concept of ‘losing’ carries with it strong emotional attachment (anger + denial). Our ONLY focus should be just 'WHO IS IN CONTROL' based on facts we gather. Lets just watch the Bulls and the Bears fight it out as spectators. Then we trade as what the facts dictates. We will cheer for both the Bulls and the Bears.
And if you know the FACTS, you can remain calm. If you trade based on guesstimates, you will probably have no idea what is happening. You are screwed. I trade based on Facts. Facts give us the SUPPORT line that is now being contested. Above it, Buyers is in control. Below it, Seller is in control. If you know this, what else is there to worry?
Happy trading.
P/S As always, do not just believe what I say. Use your common sense.
If you are here for the first time, please take some time to read all the preceding ideas. If you do not read the previous ideas, then you might not appreciate the flow.
At the moment, Bulls and Bears are fighting it out to gain control. We must watch things closely to gather clues/facts as to the potential outcome. Our trades depend on our findings.
One of the most important thing to master when trading is handling our EMOTION. That is what we are told all the time. But what is not mentioned is how we are going to do that. The current situation with EURUSD is exactly the kind of example we need. Those buying are anxious now that price keeps falling while those selling keeps asking when price will break the support. A lot of money is involved.
I think the most important thing to keep emotion in check is NOT TO PICK A SIDE when trading. I have said this before. Its futile trying to predict where price will go. Once you develop a 'Conclusion', you will eventually tie yourself down. My advice is, never try to pick a side. Instead, have an open mind. This way, you can appreciate better the possibilities whenever new information is received.
As traders, we are not concerned who is winning/losing. Often, people get emotional when LOSING. The concept of ‘losing’ carries with it strong emotional attachment (anger + denial). Our ONLY focus should be just 'WHO IS IN CONTROL' based on facts we gather. Lets just watch the Bulls and the Bears fight it out as spectators. Then we trade as what the facts dictates. We will cheer for both the Bulls and the Bears.
And if you know the FACTS, you can remain calm. If you trade based on guesstimates, you will probably have no idea what is happening. You are screwed. I trade based on Facts. Facts give us the SUPPORT line that is now being contested. Above it, Buyers is in control. Below it, Seller is in control. If you know this, what else is there to worry?
Happy trading.
P/S As always, do not just believe what I say. Use your common sense.
Note
Sellers are now in CONTROL. Great work to the BEARS :)
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