Tuesday, 23 July 2013

Anger and Happiness

I am angry after a negative outcome and happy after a positive outcome but in order to adapt more quickly I have to remove emotion from the outcome as soon as possible. It is more important to focus on what happened and less how I feel about it. Prolonged feelings of anger or happiness causes risk blindness and impedes my learning. Misjudging risk will prevent me from taking a trade or taking too much risk.
Indifference: I have already talked about the worst thing that can happen to a trader. No emotion can be a warning sign too. Emotions should not last forever but they should exist.
Emotional Delay: The other issue is emotional delay. This plays out in two ways. If I am exhausted after a trading day it is because I bottled it up and was able to repress it. This happens when I made money doing things that aren’t repeatable, I found the natural winners before the losers. I should have lost money. The other occurs when I turned a good day into a bad day but it happened so fast I never reacted to it.

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