Mental and Emotional Stability
March 22, 2010 by ingrid_mueller
The goal of trading discipline is mental and emotional stability which reveals crystal clarity about all aspects of trading.
It is generally approached from the viewpoint of controlling thoughts and emotions, becoming fairly dispassionate and neutral in order to execute successful trades. Avoiding getting swept upon the sea of emotions as we are deciding when to enter or when to exit, speculating as to where the market is going to go next.
One scientific estimate says that we have on average 60,000 thoughts per day. If that is true then it is an impossible task to control those wildly active viewpoints in response to what we are observing and experiencing throughout the day, let alone the heat of trading.