How to avoid emotional trading in futures trading?

You just need to understand that emotional trading is what amateur traders do.

What is emotional trading?

Is that almost done? Buy some and try? It doesn't feel good. Is it out? Do you want to add some positions? Pilot order first? … It’s slight.

The moderate thing is, if it’s unfair, I don’t believe I can’t come back! Work hard, or you'll be successful if you don't succeed!

The serious thing is, screw it, forget it...

Emotional trading is a typical irregular trading. This trading model is completely based on luck, and, If you completely follow your emotions, your behavior will definitely be wrong in the long run.

Because we have demonstrated that the specific manifestations of human emotions in trading are: aversion to losses, aversion to uncertainty, etc... The behavior caused by these emotions is to bear losses and close when gains are good. This model will inevitably lead to losses in the long run.

Therefore, emotional trading is a typical wrong behavior.

If you continue to do this, you will definitely suffer losses.

As long as you reject emotional trading, start establishing trading rules, and use rules to deal with uncertain trends, you will have real profit opportunities.

Only when a trader can understand this truth, know what the emotional outcome is, and know what the correct model is, can he truly avoid emotional trading.

This is the fundamental solution.

What do you think?

Like and support, thank you.

In futures trading, emotional trading is difficult to avoid.

Because: People are emotional animals, and emotion is an instinct. I feel happy when I make money, I feel depressed when I lose money, and I feel nervous when I don’t make money or lose money.

The so-called avoidance, I think, is more about avoiding emotional opening and closing of positions.

Why are positions opened and closed emotionally?

Because there is no complete set of tactics. That is to say, there is no systematic approach.

Therefore, in actual combat, follow your feelings. If you see it rising, go long; if you see it fall, go short. Then, I was slapped in the face again and again by the market.

To avoid this kind of emotional approach, it is actually very simple, that is, to form your own set of practices.

Knocking on the blackboard: your own way!

Some people have quick and flexible minds and are good at short-term trading.

Some people, like me, are stupid and only come to their senses after a long time. They are suitable for daily and weekly trading. , with 24 hours of thinking time.

The system includes opening and closing positions, fund management, cycle matching, and personality matching. . . etc.

If you like me, please feel free to communicate further.

How to avoid emotional trading in futures trading?

Seeing this problem, it is a problem that most novice traders will encounter. We have been trading for more than 10 years. Now in the trading process, it is difficult to encounter the problem of emotional trading. . Overcoming clear trading and gradually transforming into planned trading is a symbol of a trader gradually breaking away from losses and slowly entering the stop-loss stage.

The best way to avoid clear trading is that if you feel that you have fallen into emotional trading, please stop trading immediately, open the trading plan that you have prepared in advance, and see if your trading is according to the plan. If it is, it is not clear. If it is not, stop and reflect immediately.

There is a premise here, that is, you must have a trading plan. The root cause of the vast majority of losing traders is that they do not have a trading plan, or they are unable to follow the trading plan to make transactions.

So what is a trading plan? To give a simple example, Apple’s trend on February 11, 2019

As shown in the picture above, before the market opened on February 11, we were betting on Apple The trading plan for this variety is to go long when the price exceeds 10920, and use 50 pips as a stop loss. Here, the trading position is established, the stop loss is established, and about 50% of the position can be used for short-term trading within the day. Such a plan is a relatively reliable trading plan.

After formulating this trading plan, traders must not watch the fluctuations of Apple during the day and conduct long and short short-term transactions back and forth. If there are these transactions, they are impulsive transactions that do not follow the plan. Behavior, only if the price breaks through 10920 points and you open a long position, it is a planned transaction.

Traders simply cannot avoid emotions in trading. I believe many people will not agree with my point of view. Many traders around me read books, sit still, meditate, and read Buddhist scriptures in order to overcome emotions and overcome the weaknesses of human nature in trading. But no one can do it. Ideal: No excitement or joy when trading is profitable; no depression or sadness when trading is losing; completely devoid of human nature. I would like to ask if human nature is eliminated, will humans still be human? What is the meaning of life? Pass DNA like animals?

Have you ever seen a person in life who is unfazed by honor and disgrace?

So many traders have gone the wrong way, hoping to control their emotions and achieve perfect trading. In fact, this is an impossible task.

Therefore, in the face of emotional changes in trading, just control your emotions as much as possible. Trading behavior, like everything in the world, cannot be perfect.

Fear comes from the unknown, and fear comes from insufficient understanding.

First of all: Improving trading standards is the way to avoid getting emotional. For example, where should the order stop loss and where should the profit be taken? When the market moves and then pulls back, you are afraid of profit taking and don't know what to do? Only by improving the standards, we will have plans for the above problems after the order enters the market. No matter how the market fluctuates, we will know how to deal with it. As the saying goes: everything is done in advance, and failure in advance will be ruined.

Secondly: fully review the trading system and be aware of the weaknesses and advantages of the trading system. Know yourself and the enemy, and be confident; the profit cycle, profit rate, trading frequency, risk value, continuous stop loss frequency, etc. of the trading system are clear and obvious. When traders believe that the current trading system is the optimal solution for trading, as long as the trading system is strictly implemented, they will be able to Profit, temporary losses are inevitable. Full understanding of the trading system gives traders confidence; strong confidence can overcome the fear of the unknown.

Summary: By standardizing trading behavior, fully understanding transactions, and building confidence in transactions and systems, you can better control your emotions.

How to avoid emotional trading in futures trading?

Fatigue, boredom, excitement and excitement are actually signs that you are trading emotionally. What if this situation is avoided?

In order to solve the problem of emotional trading.

When traders become emotional, it is often due to a lack of discipline. For ordinary traders who are free and casual, it is very difficult to comply with established and strict trading disciplines. The most important principle is that traders must remember that even the most perfect trading system will experience losses. Every transaction, whether it is a profit or a loss, needs to be carefully evaluated and lessons learned. To solve the problem of emotional trading, traders need to remove emotional factors from your trading discipline.

Poor execution is another important reason why many traders cannot follow their own trading system well. Traders should carefully study the entry principles in the trading rules, not simply judge the points. . Understand that losses are part of the trading system. Face losses rationally.

Traders learn to control their emotions, which is half the battle.

The above is my opinion.

I hope my answer can help you.

Friends who are interested in futures can pay attention. I will share some knowledge about futures every day. Thank you

When we are doing futures trading, we are inevitably subjective and affected by emotions. Moreover, I believe that most traders are also aware of the harm to trading caused by emotional influence.

First of all, in futures trading, traders hold orders in their hands and stare at the market. As the K-line fluctuates, they will be affected by the market fluctuations, which always affects the traders' emotions. Newbies often make irrational judgments when immersed in them. For example, for a profit order, if a take-profit signal appears, if the profit is not taken in time, profits will be taken; if the market goes in the opposite direction, there will be no stop-loss, holding the order, and position management, etc.

So how can we avoid emotional trading in futures as much as possible?

1. Find a stable and profitable trading system

2. Firm execution

3. Fund risk management

An effective Trading system and being able to adhere to it unswervingly will make your actions more consistent. A well-honed mechanical trading system can give you the confidence, consistency, and discipline that are the keys to success for many top traders.

Entering the market: When to buy or sell?

Stop Loss: When to exit a losing position

Exit: When to exit a winning position

Enter

When trading When a market entry signal appears in the system, enter the market resolutely

Stop loss

If you want to control losses, you must learn to stop losses. Then you must determine the stop loss standards when entering the market and implement them resolutely.

Exit

A complete trading system should have an exit standard, which is the end of a trend, or a support and resistance level...

Financial Risk Management< /p>

The futures market is characterized by high volatility and high leverage. Fund management is about maximizing profit potential and controlling bankruptcy levels within an acceptable range.

1. Account risk tolerance

2. Profit expectations

3. Position opening size

4. Position adjustment

Traders are affected by emotions, especially when there are significant losses. An effective and complete mechanical trading system, its rules cover every aspect of the transaction, leaving no room for traders to think subjectively. Follow it strictly and the system will make money for you and help you survive the financial losses and mental torture of the decline period.

Traders are lonely, friends are welcome to leave messages below.

The importance of emotional control in futures trading is second only to risk management. Although many people have already answered, as a little leech with twelve years of trading experience in the capital market, I also I want to share my little experience.

Although the length of time he has been "hanging around" in the capital market is not considered "experienced", the scale of managed funds is already 2 billion, and he is constantly experiencing continuous growth, so he is willing to Some gains are shared for reference.

Inner emotions are a key factor in the success of a trader. It is not difficult to have one or more excellent trading systems, but if you have ego, fear, greed or gambling emotions during the trading process, then manage them The capital account is not so safe. Especially in leveraged products such as futures, any irrational trading psychology is a lurking bomb.

Before controlling your emotions, please look for bad psychology. First of all, please carefully review your mental state during several transactions. Are there any of the above unhealthy "potential bomb emotions"? It must be objective and not blindly confident. If it exists, write it/them on paper first - forming a "little note" to remind yourself all the time.

Traders will race against time every time they encounter a trading opportunity. They wish they could place orders in 0.01 seconds, but on the way to restraining bad emotions, they must slow down. Before placing an order, you must take a look at the "little note" you wrote to see if the transaction you want to make now contains the bad trading psychology written on the "little note". If it exists, please think about it again; if it does not exist, then implement it decisively.

Although this word is used too strongly, most people step into the same wrong river repeatedly throughout their lives. Some psychological patterns will repeatedly affect your trading system. The pre-market summary of the next day will help you to look at the previous day's transactions soberly, and be sure to find those key transactions with "self-destructive" tendencies. Don't blame your losses on bad luck or other people. If you have the patience, you can create your own trading journal and summarize recurring patterns of success and failure. Stick to good trading behavior and end the bad historical cycle.

Many traders, especially those with successful experience, are unwilling to take risks when they should. However, the capital market, especially the futures market, is a high-risk investment product with leverage. Traders must understand that this is not a sure-win game. Some traders do not accept losses and choose to "resist" when they make errors in judgment in the transaction itself. This is not good. You must understand that if you fight hard, you will make a small amount of money; but if you fight hard and make a mistake, you will lose a lot of money. Everyone understands that take profit should be greater than stop loss, but why do we choose a trading method that does more harm than good when executing?

As a trader, you often bear transaction risks. As a high-risk trader, you should think about the reasonable range of risk control before making every decision. Make a plan and stick to it. Because once you miss the opportunity to execute and go in the opposite direction to your expectations, if you still avoid it, it will only make it more difficult to control your emotions.