While I am absolutely agree about the role of emotions, I would like to point out two different "layers" of emotions.
First one (with no doubt is to be weed out): emotional attachment to the stock, emotional perception of all ups and downs, fear, tense, anger etc etc. Trader with blood pumping is dead meat. Reaction on signals without second guessing, stopping out when market proved position to be wrong, taking of profit without calculating how much one needs to pay mortgage but when sell signal appeared - all this is possible only when trader is calm and objective.
Second kind - not that "alphabetic". Being "Intuitive Trader" according to definitions discussed earlier, I value
this second kind very much and do all I can to develop it.
It's inner feeling which quite differs when the trade is right. Sometimes it helps to elaborate the signals system generates, sometimes it contradicts them (I prefer to stay away from the trade in this kind of situations, although sometimes this feeling is that strong that it makes me to take the trade). Sometimes it just doesn't work during whole day, and I feel blind, even though system gives signals. Unfortunately it's not something easy to manage (or at least, I haven't found the way to do it).
I found "Tao of Trading" and "Intuitive Trader" to be very helpful in recognizing of this inner voice. Anyone to share this kind of experience?
Vadym |
