Did you know that forcing your face into a smile for 30 seconds can actually make you feel happier? Hopefully, you won’t need this tip. But if a market dips one day, you know what to do.
Trading emotions are always discussed as something negative. But there are so many emotions that you will enjoy along the way, including these five:
Surprise is the briefest of the universal emotions. But in trading, there will be countless times when you encounter a gap between your assumptions and expectations. It might be something external, like good news from a company’s financial statement or a sudden market upturn. You never know how things will unfold in the trading world.
Or it might be internal—you’ll be surprised by yourself. There is something character-building about stepping into the unknown, meeting a challenge head-on, coming out on top, and learning about yourself in the process.
If you hate being surprised, trading will knock that out of you. You’ll become comfortable with uncertainty and change.
Relief is that palpable, positive feeling you get after dodging a metaphorical bullet. It’s knowing that you narrowly escaped some misfortune or unpleasantness. Or it can mark the end of a stressful situation—for example, when at the end of a busy trading session.
The risks will follow your every trading step: from buying the right asset to selling it at the right time. And what a cool emotion it is to finally feel that risk from a certain trade has been alleviated. Let’s say you close a position just before the uptrend reserves—this might elicit a whew!
While theorists would not include confidence among the prototypical emotions, it can be viewed as an emotional response. This feeling comes and goes as you deal with different situations in the market. The more obstacles you overcome and the more trading experience you gain, the more strongly you’ll believe in your building and maintaining your success.
Confidence is the antidote to trading fears. It reminds you of your abilities and gives you the courage to continue trading, despite the fear of losses along the way. Confidence is also associated with the ability to cope with stress (which you’ll experience plenty of).
When you get a big trading win, there are two routes you can take. You can be prideful and arrogant. Or you can respond with feelings of gratitude, kindness, and other forms of generosity.
You hear a lot about unpredictable market situations that you can’t control. So, you have to recognize that the source of that win lies at least partially outside yourself.
If circumstances were different, that trading win could’ve been a loss. You could work just as hard, use the same strategy, try to time the market, and still fail. The earlier you accept it, the more grateful you feel when things go your way.
Imagine closing your trading terminal for the day, knowing that you’ve had a productive session. You don’t need to do anything urgent now, perhaps read some reports or your business book of choice. This is the moment when you feel at peace.
You’ll get this feeling often, but you should learn to hold on to it. Don’t let anxious thoughts about the next day pull you away from the present moment.
Concluding thoughts about trading emotions
Most times, it doesn’t matter what emotions you’re feeling. What’s more important is how intense they are and whether they affect your trading decisions.
In an ideal scenario, you’ll only feel the positive emotions from the list and follow your trading plan regardless. In reality, there will be ups and downs. So, brace yourself for the full range of emotions, not only the cool ones, and have the internal tools to handle them properly.