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Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting Edge Psychology by Gary Dayton

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CHAPTER 2

Strong Emotions in Trading

If you picked up this book and are reading it, it is very likely that you have experienced strong emotions in your trading and have struggled with them. It is also very likely that these strong feelings have caused erratic trading actions. You have had losses or missed profits because you acted too soon, acted inappropriately, or failed to act at all. Strong emotions have affected your trading.

You may have put extra effort into your trading to try to overcome this problem, learning more about technical analysis and maybe trading psychology. But that doesn't seem to matter. When you get into a trade you almost immediately feel your nerves rise. Your attention rivets onto price action; you feel like you are living or dying on every tick. Soon, your heart is racing and your muscles become tense. Your discomfort is palpable. If your trade is in a little profit, your mind is urging you to get out now—at least you will have a profit, it says. Certainly, you cannot have a loss. You might struggle a little longer and try to hold onto the trade, but your mind becomes insistent: “Get out NOW!” And, you do.

You feel relief. Whew! All that tension is over. And, you made a small profit. The relief feels good. Then, a few minutes later the market takes off and runs several points in your direction. A sizable profit was forfeited because you were mentally and emotionally hijacked. How many times have you repeated this or similar experiences? You promise ...

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