How do you manage your emotions as a trader, particularly when the market is volatile? This is a question that most traders have to attend to when they start their trading career.
The Broadcast PR Business held a filmed discussion on this hot topic by bringing together research from The Open University and advice from the Chief Strategist at IG Index.
Professor Mark Fenton O’Creevy from The Open University gave some guidance:
‘Don’t continue to trade with money you can’t afford to lose, if the market is unsettled; always write down your trading strategy and then your reasons for changing this during a trade before you act. Don’t push your emotions down, becoming aware of them and distance yourself! Trading is an intensely emotional business and expert traders learn to manage their reactions.’
David Jones, Chief Strategist at IG Index agreed:
‘You must be disciplined about your emotions – keep calm and detached. Know when to preserve your capital, by developing an emotional instinct to cutting your losses. Above all, in this 24/7 technological world, do not let your emotions be driven by watching the markets night and day. Use technology sensibly and do not be a slave to it.’
View the discussion at www.broadcastprbusiness.com