Keep a Cool Head in Your Trade
In all facets of business, keeping a cool head is of the utmost importance to moving ahead successfully. Having an unemotional, objective approach to the business of Futures trading is not that difficult to maintain, that is until you actually place a trade with real money. At that point, our internal psychological resolve to remain unattached emotionally starts to creak under pressure at different rates for different traders.
We as traders are not robots, mechanical facsimiles of mankind completely replete of any emotion or concern. When a trade is placed with real money on the line, it represents the potential for future finances that will indeed affect our net worth at the bottom of the ledger. Rarely is there the person that has no concern as to what their bottom line happens to be each week, month or year. Even the richest of the rich are affected by the ebb and flow of their empires, that which is depicted by their bottom line. So naturally, we all will find our emotions tugged to some degree when it comes to our money.
Trading futures generates some degree of stress. The amount of stress is directly proportional to how one thinks in terms of money, winning and losing, and what degree of reward of punishment they assign to the results of their trades. The more importance we place on the outcome of our trades, on the both the positive and negative end, the more the results will affect us.
