How to Prevent Emotional Trading

How to Prevent Emotional Trading

Emotions have absolutely no place in trading. All emotions do is ruin a trader’s mindset. Trading, whether Forex, stocks, cryptocurrencies, or otherwise, is about reason, logic, and solid planning. Today, we will provide you with some crucial tips on how to prevent emotional trading from draining your bank account.

Prevent Emotional Trading

Try to Keep Trades Small

One thing that you can do to prevent emotional trading on your behalf, especially as a beginner, is to limit the size of your trades. The larger the trades that you place, the more emotionally charged the situation is going to be.

Of course, nobody likes losing money, and the more money lost, the worse it is. So, if you place a $10,000 trade, it’s going to be super stressful, way more stressful than a $100 trade.

Now, as you get better and more confident in your abilities, those larger trades will become less stressful. However, for the time being, to keep your emotions in check, it’s best to go with smaller trades.


Get Rid of Your Ego

Yet another thing that will help prevent emotional trading is to park your ego at the door, so to speak. Yes, your ego is a part of your emotional state. For instance, if you win a few trades in a row and make some good money, it might get to your head.

In other words, a series of wins can artificially overinflate your ego. It comes to the point where you are falsely confident, and eventually you’ll start being reckless.

On the other hand, if you lose several trades, and you allow this to get to your head, it may make you far too cautious and scared of trading. Whether trading inflates or deflates your ego, both results lead to losing more trades. Therefore, to prevent emotional trading and losses, leave your ego out of it.

Emotional Trading


Educate Yourself

One of the best things that you can do to prevent emotional trading is to get educated on the matter. Simply put, the more you know about Forex, stocks, and other markets, the less you need to rely on your gut feeling.

Of course, your gut feeling has to do with your emotions, but gut feelings can often be wrong. Trading without a solid education and a good knowledge base is a sure-fire way to end up losing, and this will only make you more emotional.

It’s a vicious cycle, one that you need to prevent from occurring in the first place. The more you know, the more confident you can be in your abilities. Therefore, if you are confident, when you place trades, you won’t be very worried about them. It all comes down to knowing what you are doing.


Use a Solid Strategy

Related to the previous point, something else that you can do to prevent emotional trading is to find, refine, and practice a good trading strategy, or even several of them. The fact of the matter is that no professional trader just places trades on a whim.

Every good trader has a good strategy behind them. If you use a time tested strategy that is proven to produce positive results on a consistent basis, then you can be confident in your trades. The better your strategy, and the better you are at its execution, the less emotional this whole process will be.


Only Trade What You Can Afford to Lose

Perhaps one of the biggest mistakes that newbie traders make is to trade with money that they cannot afford to lose. Folks, if you gamble with your rent money, your school tuition, your money that you need to put food on the table, it is automatically going to create stress and an emotionally charged situation.

If you do this, you absolutely need every trade to go your way. If one trade goes south, oops, you just lost your only way to pay this month’s rent.

To help keep emotions to a minimum, you need to only trade with money that you can comfortably afford to lose. In the event that you do lose some money, if you didn’t need it to survive, it’s not going to affect your mental state in any significant way.

Prevent Emotional Trading


Start Taking Care of Yourself

One of the most important things for you to do if you want to prevent emotional trading is to actually take care of yourself. By this, we mean make sure that you are in a good mental state, as well as in good physical health.

The reality is that there are many things that can cause you to become emotional, and they will all affect your ability to trade in a rational and reasonable manner. If you are super depressed, stressed out, anxious, tired, malnourished, or anything else of the sort, it’s going to affect your mental state and your emotions.

If you start the day of trading already stressed out, you can probably guess that things aren’t going to go your way. So, just take care of yourself, take a personal mental health day, drink a hot tea, and take a bubble bath.

Prevent Emotional Trading


Start Getting Used to Risk & Loss

Yet another way to prevent emotional trading is to get used to the idea of risking your money and potentially losing it. Folks, this is the name of the game.

You are gambling your money, albeit in a rational and analytical way, but in a sense, it is still gambling, and when you gamble, there is always a chance that things won’t go your way.

You won’t ever be a profitable and confident trader if you cannot accept the fact that sometimes you will lose, undoubtedly. The best of the best traders can put their emotions aside, suck it up, and keep going. This is the nature of trading.


It’s About Quality, not Quantity

The other thing that we want to stress here is that trading is about quality, not quantity. Simply put, if you put research and effort into finding the best possible trades, you can be reasonably confident in them.

However, if you just place a ton of trades and hope for the best, it’s going to be super stressful and emotional. This is always the case, no matter what, quality is always better than quantity.

Prevent Emotional Trading


How to Prevent Emotional Trading – Final Thoughts

There you have it folks, some great ways to prevent emotional trading from dictating your trading game. If you truly want to become a profitable trader, we recommend taking a look at the Income Mentor Box Day Trading Academy, one of the world’s most respected online schools for aspiring traders.


Using The ATR Indicator For WINS!

Using The ATR Indicator For WINS!


If you are tired of losing trades and you need to find a great way to trade Forex and set your stop loss levels, this ATR indicator strategy is one you need to take a look at. Below, we are going to outline how to use the ATR indicator to set your stop loss levels. We also have a live profit session to show you. This is where Andrew, from our own Income Mentor Box Day Trading Academy, shows you his live trades and profits, all thanks to this ATR indicator.

Income Mentor Box ATR Indicator

What Is The ATR Indicator?

Ok, so before we really get into the meat and potatoes of today’s ATR indicator article, it is probably wise if you know what this ATR indicator actually is and how it functions. Ok, so ATR stands for Average True Range. The Average True Range or ATR indicator is a measure of volatility. If you do not know, volatility is a measure of the strength of the price action. In other words, it measures how volatile an asset such as a currency pairing is, in terms of how far the price may move in either direction in any given time.

The ATR indicator is indeed quite important and is often overlooked when it comes to analyzing and determining market direction and asset volatility. Although it is often overlooked, real trading professional know just how important it really is, and it has been in use for several decades now to determine volatility and price action. The ATR indicator can be used in order to create a full trading strategy, or it can also be used to just set entry and exit signals and levels too.


How To Use The ATR Indicator To Set Stop Loss

Ok, so now that we have figured out what exactly this ATR indicator is, we want to talk about how you can use it in order to win trades. In this case, we want to talk specifically about stop loss levels and how to use the ATR indicator in order to determine the stop loss level for any given trading position which you may place. Right now we are going to go through a step by step process on doing this in as easy a way as possible. Let’s get right to it and teach you how to use the ATR indicator in order to place winning trades and to set the proper stop loss levels.

  1. First things first, go to your trading platform of choice. Here you need to find the indicators tab. Look for the ATR indicator, find it, and select it. Every charting solution and trading platform should come with this.
  1. As you can see, it just looks like one single line, which you can modify as you choose. Many traders use the ATR indicator by setting the level to 20. However, by default, the level is usually set to 14, which is actually based on days. You can choose the color and the style of line based on your preferences.
  1. So, when you are making a trade, look at your charts and analyze the price of the asset in question, and examine the ATR indicator at the same time. You are looking for the ATR value, and you are looking for an ideal resistance level too.
  1. Now you need to find your stop loss by examining what the ATR indicator is telling you. You want to take the value of the ATR indicator and multiply it by 2. This is what your stop loss level will be for a certain asset at a certain time. You want to add this value (ATR x 2) to the market price, and this is what your stop loss will be.

ATR Indicator


Yes, we here at the Income Mentor Box Day Trading Academy know that this whole ATR indicator concept is a bit difficult to understand, especially in words without any visual reference. But hey, this is why our leader, Andrew, has taken it upon himself to make an ATR indicator trading video. If you take a look at the video, Andrew outlines all of these steps in details and provides you with several live examples. Once you see it live in action, you should be able to grasp the concept quite quickly.

ATR Indicator Live Trading Results

Of course, you don’t want to just take our word that this ATR indicator and stop loss strategy works. Here at the Income Mentor Box Day Trading Academy, Andrew always provides you with live trading updates and results, with trades being placed, going on, and being closed in real time.

We are here to show you that our strategies actually work, and that you can do the same to make good money through trading. Like we always say here, the proof is in the profits. If you take a look at the below video, you will set that Andrew placed a very good trade using the ATR indicator method which we outlined above.

The results which Andrew were able to achieve were pretty good no doubt. Using this same trading strategy which we outlined above, Andrew was able to make a profit of well over 300 Euros with one single USD/JYP trade. Guys, if you use this ATR indicator strategy, there is no reason why you cannot make a few hundred Euros profit in a single trade just like this. Also, keep in mind that this trade was only open for roughly 2 hours. Making over 300 Euros in just 2 hours is definitely impressive!

ATR Indicator Profits

Income Mentor Box & The ATR Indicator – Final Thoughts

While this strategy might be a bit complex to understand at first, we do think that Andrew did a great job at explaining it in an easy to grasp way. Yeah, it might take a couple rounds of practice, but there is no reason why you should not be able to achieve the same results as Andrew here.

If you want to become a professional day trader and learn how to profit through Forex, indices, stock, and commodities trading, our Income Mentor Box Day Trading Academy is undoubtedly the best place to be. For the low onetime payment of $299, you will gain full access to all course materials. It’s time to quit your day job and become a professional day trader from home, a highly profitable one!

Income Mentor Box Risk Management