As required, this is an article about emotion when trading. Although this is not a perfect article, the author has put his emotion into it. This article’s structure may be not concrete, the author will improve this mistake in the next articles.
- 1 My story – Mr.K of 1 year ago
- 2 I know Option trading is suitable for me
- 3 The trap that Option Platform set up for you
- 4 How to control emotion when trading Option?
My story – Mr.K of 1 year ago
There was a time I thought I am a master of Forex. In Vietnam, Forex was prevented. That’s why you didn’t know much about this platform. However, in Singapore, it was very popular. That’s why I met and get acquainted with a lot of young millionaires. I learned a lot from their sharings and experience. My path to Forex was so smooth that I began to dream to be like them. After learning some necessary information about Forex, I invested all my money into it.
My method focused on EUR/JPY. It’s my only one method – MrK’s method – with one pair of currency and only trade with the order “sell”. You can see a lot of successful players on Forex, but you may hardly see a player who can trade with 13.5 thousand dollars for only sell order.
But I won most of the time. From 27 thousand dollars, I earned 45 thousand dollars in one month. In the next month, I borrowed money from friends and used all of my salary to put in my trading account, making its number increase to 54 thousand dollars. I was so successful in Forex that my account number increased to 62.6 thousand dollars. This number may be huge for you, but I knew it was nothing comparing to other seniors who have been players on Forex for years earned on this platform. I became greedy and my desire for success was intolerable.
And what comes will come. I made mistake for the first time. The biggest mistake was I did not cut loss. Who don’t know how to protect his money will go broke. I did not know and I got my bitter outcome. However, I was so stupid to think that it was a small mistake and I could make up for the loss soon.
Then I made mistake for the second time. It made me swear that I never touch Forex anymore. I lost almost all my money and what left in my account was only 1000 dollars. You may think people who commit suicide are crazy but that was exactly what I felt at that time. I was confused, scared, and everything around me was so terrible. I could not do anything after those failures.
Are you laughing at me? I think you can laugh since you did not experience what I did. But if you did you can understand what I am saying now. Those experience helped me grow up and become the current Mr. K.
I know Option trading is suitable for me
If you once inboxed me, you know my job is a data analyst. The stressful environment turned me into a machine. And it also turned me into a statistic master. And those who are cold-headed, statistically thinking, tough are suitable for Option.
It just likes Forex, but statistical analyzing the repetition of price in a period of time is needed. I can do this. I just need to find the high probability of price repetition and I can earn money from this. In the morning, when I was free. I looked at the history of tradings, wrote down, and experienced. And just like our ancestors said: When you are ready, the teacher appears. I once mentioned my teacher in this field. He gave me the faith that this is not a fraud.
Of course, even you are a master or a newcomer, the feelings when you execute an order was so scary. It makes me all sweaty and thrilled. Especially when I was a person who had lost so much in this kind of tradings. After losing so much money, I became calmer. That’s why I do not have much faith in young players as well as their ways of guiding other newcomers in Option. They are too enthusiastic, and they lack of experience of losing a lot of money. For example, they showed off their money but did not show their account number changing. They are luring naive people. If they only show the number, how can they teach you about emotion when trading?
The trap that Option Platform set up for you
Sometimes, the operators will intervene in the price change on the platform so that the trading results will bring profit for them. If they do not do this, they will not have enough money to operate the platform ( the cost of advertisement, the cost of operation, the prize for winners, etc). But that is not the only fact, the platform operators, such as Olymp Trade, Binomo, IQ Option, also trick you into trading until you go broke by these ways:
– Human nature of greed
Are you greedy? If you are not, you are not human. It is the common character of people all over the world. The operators analyze a number of players’ behavior and use the analyzed results to intervene to tradings. The game up-down, put-call, buy-sell become a mean for operators to earn money. No matter who joins the game, thanks to the human’s greed, the operators are the ones who get profit. When you let greed take the lead, no matter you have knowledge of the game or not, you die. Operators just need to make it easy to trade, make a little change in the indicators and tools, then you will throw yourself into trading and worship all your money to the operators.
– Commission for IB
Option platforms pay high commission for IBs. And because of this, the IBs lose their mercy. The more you trade, the more money they get. That’s why they are more enthusiastic than you. They show off the bank account, open classes, trade live, etc to lead you to the road of Option trading.
I am sure that you were once a normal person. Your life was so simple with jobs, friends, family. You did not even know Olymp Trade exists. One day, you saw an ad of Bimomo, and you saw someone who can earn money easily. These images appeared again and again in your life, you got attracted. You started to play unstoppably and uncontrollably.
I have complained about the activities of IBs once, humiliated their advertisement about “earning money fast”. But I could not change anything, the only thing I could do is to write blogs. Maybe people would read my articles and know how to protect themselves. I never think my articles help anyone earn money.
– Waiting period
Whoever play Option has to wait until the trading period end. Until then, you do not know if you win or lose. The feelings of waiting for death is more terrible than death itself, This is that kind of feelings.
The waiting time makes you nervous. It also the reason makes you lose your head, lose your control. It makes you want to take action. That feeling is so nasty and confusing. You always need to do something, for example, executing another trading order.
How to control emotion when trading Option?
Maybe I should advise you: Burn all of your money and you will see the light. Of course, I won’t do that.
The best way to keep you calm when trading is never touching this game. Say no to gamble and Option and never mind those advertisements about Binomo, IQ Option, Olymp Trade, etc. Never log in to this blog, or meet friends who involve in Option. That is the best way, or you can try these ways:
Trade by yourself
Have you ever read my writings? They are not about the methods or showing off money, they are about my rule of trading: One pair of currency, one period of time and one method.
You do not feel confident when you do it, right? Because it is my method, not yours. You can only be confident when you trade yourself. You do the analysis yourself, make your own strategy, find your own indicators or rules. When you can set something up yourself, you can become confident and firm like a machine. When you trade, you know you can earn money. It is your own habit to succeed.
Teamwork with a good leader
I hope you can find a good team with a good leader who has enough skills and kindness to help you. When you trade with skillful people, you can build up your own confidence and become skillful, too. Although it is difficult to find a good team and leader, most of the time, successful people like sharing. And believe me, when you are ready, you will meet whom you want to meet.
Practice makes perfect
If you often watch movie, let’s watch “The story of three kingdoms”. At the end of the movie, Sima Yi said: “I use the sword once, but I have sharpened it for years”
Many people are so stupid that they just register an account in a day and the next day they dream about earning a lot from what they have invested. And they even invested a lot with a strong belief to earn thousands of dollars soon. I will advise you to stay away from this kind of people. They will go broke sooner or later, don’t let them lead you to the same result.
If you are not skillful enough, accept it and trade with care.
I have to remind you about the hitman, his coldness and firmness. He prepares carefully to complete his mission. Before killing the prey, he plans every detail, every step of the prey. He chooses the perfect time and place to kill it. And his skill of shooting is no need to say.
Let me tell you. When hunting, his breath is deep and slow. Everything is stable and rhythmical. When the prey enters the view, he opens the safety pin and pulls the trigger. He only shoots a single bullet, then stands up and leaves. He doesn’t care if he hit or miss. He knows it is his job and he has other preys to hunt. That is professionals.
Do you see yourself in him? If you trade at 9, Do you have to prepare at 8.30 and check the trading point? How did you breath when you wait for trade order? Did you focus 100% on the graph? Did you just click once at the right point and stop when you see the danger? Or did you get high when you win, get nervous when you lose and trade uncontrollably? Be conscious and don’t easily give your money to the operators.
Don’t force yourself
Trading is a game of happiness. Let it be a meal for your mind and don’t think much about earning money and burn too much money into it. Use your money for studying useful things and learning new experience instead of playing with luck.
That is the reason why I just spend a short time in the morning for trading and writing. I only see it as a little game of a day which makes me feel joyful. I realize this when I let go all of the pressure to earn money, I see the right point, I click, I don’t care whether I win or lose, and at that time, I can earn money, sustainably.
Stop in time
“Reaching the top means knowing when to stop”, that is the motto of this game.
Do you know that a lot of the Vietnamese are in the top poker players in the world? If you know about this game, you will know how the high-level players protect their money. They stop right at the time they know they lose and only try if they see the chance of winning. They never play all in by sense. They have reasons for every step they make. And they never rush to decide. The final person who stands strong in a poker table is the one who knows when to stop.
If you keep playing until you have nothing to lose, I will laugh at your face on how you look down on yourself. Set yourself a limit and stop when you reach it. You will not get success on anything if you cannot stop at the right time. In that case, my advice for you is to put your money in the bank and let the bank keep it for you.
I am K
I am Mr. K, the columnist of Olymp Trade on OlympTradeClub.com. I know what I want: it’s not money or wealthiness, it’s practice and experience, rule and discipline!
I have written about trading method many times but did not mention much about trading emotion. This is my mistake and I will improve it as well as my writing words and style in the next articles. I will write a lot of high-quality articles in which will tell you about my trading experience, especially how to control the emotion.
Maybe after this article, I will write less and focus more on emotion. I hope that my writings have their own special feature. I never write articles like 3 simple steps at Olymp Trade, 5 steps to manage emotion, etc. You should find another blog if you want to read that kind of articles
Thanks readers for your concern. Bye.