ICT Simple Ways to Conquer your Emotions on Live Accounts

Summary

In this live trading session, the speaker highlights the emotional challenges traders face during a profitable live trade, particularly when unprepared or lacking a clear strategy. They emphasize the importance of having a structured trading model, staying disciplined, and not allowing personal emotions or external opinions to influence decisions. The speaker stresses that trading should be treated as a business, with careful planning and risk management, and that external distractions, including from loved ones, should be kept separate from trading activities to avoid psychological pitfalls and ensure long-term success.

Takeaways

• 😀 Trading can trigger intense emotional reactions, especially when profits are building quickly. These emotions can cause paralysis and indecision in new traders.
• 😀 A trader's fear of making the wrong decision (whether to exit a profitable trade or let it run) is common and can result in impulsive actions or inaction.
• 😀 Impulsive decisions in trading, such as gambling or guessing, are detrimental. Traders should always rely on a proven trading model and strategy.
• 😀 Emotions like panic and excitement can cloud judgment, leading traders to make decisions based on feelings rather than logic and planning.
• 😀 It's essential to have a clear trading plan in place, including profit targets, stop losses, and a method to lock in profits as trades progress.
• 😀 Successful traders treat trading like a business. It's a methodical, disciplined process—not something driven by excitement or emotional highs.
• 😀 Keeping personal emotions and external relationships (e.g., spouses) out of trading decisions is critical. Personal life should not interfere with trading.
• 😀 Trading should not be an emotional outlet. The goal is not to seek dopamine or emotional highs from the market but to engage in strategic, low-risk opportunities.
• 😀 Avoid letting others' opinions or expectations impact your trading decisions. What others think about your trades can introduce unnecessary stress and affect your performance.
• 😀 Transparency with your partner is important, but it's best to keep the details of your trades private on a day-to-day basis to avoid external stress or influence.
• 😀 At the end of the year, sharing trading results with your spouse is acceptable, but the focus should be on the business of trading rather than emotional reactions to individual trades.

Q & A

Why does the speaker talk to the audience in the way they do during live streams and Twitter spaces?

The speaker uses live streams and Twitter spaces to ensure that the audience remembers the lessons being taught, particularly about managing emotions and decision-making while in live trades.

What is the typical emotional reaction of a new trader when they are in a profitable live trade, according to the speaker?

New traders often feel paralyzed or overwhelmed when they are in a profitable live trade, especially when profits are growing quickly and the uncertainty of what to do next leads to panic.

What dilemma does a trader face when they are experiencing significant profits in a trade?

The trader faces the dilemma of whether to close the trade, fearing a reversal, or to let it run, risking potential loss. This indecision is compounded by emotions like fear, excitement, and the lack of a clear plan.

What mental state does the speaker suggest a trader may experience in this situation?

The speaker compares this state to Attention Deficit Disorder (ADD), where the trader is overwhelmed with racing thoughts, unable to focus, and unsure of the correct course of action.

What impact does emotional trading have on a trader's decision-making process?

Emotional trading leads to impulsive, irrational decisions, such as gambling behavior, where the trader may act based on fear, excitement, or the need for a dopamine boost rather than following a disciplined, methodical approach.

How does the speaker suggest new traders can avoid this kind of emotional paralysis?

Traders can avoid this by having a well-defined trading model, setting profit targets, using stop losses, and maintaining discipline. They should also manage their emotional state and not let personal issues or external pressures influence their trading.

What analogy does the speaker use to describe the desired approach to trading?

The speaker compares trading to running a business, where the focus is on following a consistent, methodical routine, rather than reacting emotionally to market fluctuations.

How should traders deal with the influence of their personal life on their trading?

Traders should keep their personal life separate from their trading, avoiding any distractions or emotional baggage that could affect their decisions. Trading should be treated as an isolated activity focused solely on following a business-like plan.

What is the suggested approach for communicating about trading with a spouse or partner?

The speaker advises traders to be honest with their spouse or partner, explaining that trading is a business, but not involving them in the day-to-day decisions or outcomes. Sharing results at the end of the year is preferred to avoid unnecessary emotional influence.

Why is it important not to share every detail of trading results with a spouse or partner?

Sharing too much can lead to unwanted opinions or expectations, which can cause stress, regret, or pressure. It may also negatively impact a trader’s psychology, leading to decisions based on external validation rather than a disciplined trading strategy.