Explanation of Chapter Seven – Managing Emotions in Trading – from the book Trading in the Zone by Mark Douglas:
Emotions are the main reason for the failure of most traders, especially fear and greed.
Fear leads to:
Hesitation in entering good trades.
Closing the trade early before achieving full profits.
Greed leads to:
Holding onto losing trades for too long.
Taking uncalculated risks.
Controlling emotions requires:
Developing strict mental discipline.
Committing to a pre-defined trading plan.
Accepting that losses are a natural part of the trading process.
✅ The goal is to reach a mental state called "the zone," where emotional influences fade away and decisions become calm and calculated.
In summary: Controlling emotions does not mean eliminating them entirely, but managing their impact on decisions and ensuring that the mind makes the decision, not the momentary feeling.
Continues.....
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