Here, we will be compiling different “Tricks and Tips” in the field of Trading Psychology. Keep checking back for more ideas and feel free to submit your own suggestions.
Keep a Stopwatch handy.
If you are more prone to negative emotions in trading, it can be a good idea to keep a stopwatch by your desk and time how long it takes you to experience a given emotion when trading. Keep a notebook of how much time it takes you from the moment you feel the fear or the greed until the moment it passes. It may seem silly at first, but what you’ll learn that your emotions are not permanent and they always pass no matter how bad they may seem at the moment. In cataloging your experiences, you’ll likely find that it takes less time to experience each emotion and that you know that it will end, instead of being worried it will never end.
Keep an Emotions Notebook.
We know we’re supposed to keep a Trader’s Notebook or Trader’s Journal to catalog our trades and experiences, but sometimes it can be helpful to keep a specific notebook dedicated to your trading psychology experiences. If you’re more likely to experience emotion, it can be helpful to write it down and organize it, so that you can reference your experiences and gain insight from them. In essence, you’re turning your emotions into a positive source of information for the future. Write down what you’re feeling, what triggered the emotion, how long it lasted, and any additional observations.