Can you recommend any trading methods to take out the emotional element? Any good books or sites?
Emotional elements will always exist in your trading no matter how much you try to avoiding it, Take a balanced approach. Try building a trading system with planned layout for entries and exits(Loss or Profit), backtest it and then test it in live market. Make small size trades based on it so that you don't press the panic button soon and when you become comfortable with its results, then take trades based on rule of money management.
Never risk more then 1% of your total A/C capital. Aggressive style 2%Max.
Go with a healthy risk and reward ratio. should be at least 1:2 on every trade you take.
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From the ‘Trading Method’ point of view, the answer to your query is:
Come up with strategies by looking into only the Daily Charts and not any lower timeframe charts than that. Strategies from the Daily Charts would be less volatile and one gets more time to be in the trade. After getting used to the level of emotional stress from this, next step should be increasing the Trade Size i.e., Position Sizing. After getting used to this level of emotional stress, try doing Swing trading, Intraday trading etc.
From the general point of handling emotional stress, the answer would be:
1)Come up with ur own rules for RISK taking and stick with that Risk management.
2)Take a ‘TRADE BREAK’. By trade break i mean, for 1-2 days in a month, just be in touch with the financial market as an audience for observation and not as a trader.
Books and websites are many, but i feel unless one gets adjusted to their own emotional stress hands-on, it cannot be conquered.
Thank you. This is very helpful.
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Thank you. I mostly look at Daily and weekly charts. Could you elaborate on why ‘Trade Break’ and How to practice ‘Mindfulness’. Thank you once again for helping out with your knowledge.
Ok. I believe Trade Break would not make sense to your style of trading as you look into only Daily & Weekly charts. It would make sense once u start taking high risk along with intraday & swing trading. It is similar to fasting one does for the body.
Regarding Mindfullness, it is a vast topic, u need to research urself for ur need based on your emotional quotient.