Differences between the best of the best traders and other traders in dealing with emotions (Part 1)

The trader’s day is usually very stressful and the best (best-earning) traders have developed a specific way of dealing with emotions and stress.

This discovery is very important because traders with extensive experience and not using techniques to work with emotions – have weaker results, earn less for themselves and the company.

The key difference lies in the active approach to highly stressful situations.

The best expect it and are mentally prepared for it. When something happen they focus on the assumed plan and try to implement right technics and strategies (right decisions!) despite the chaos and pressure from the outside.

They have learned enough about their decision making process that they are able to stick to it despite what they experience in their psyche.

As a result, one more effect occurs – the stress level is lower than in others, emotional reactions have less intensity and last shorter.

Traders outside of these #Top10% react differently. Their emotional reactions are stronger and the level of stress is greater. They are not as proactive, they are not prepared to manage their own reactions, they are not well prepared to follow their own plan and a good decision-making process. They try to manage their emotions by avoiding them, for example by “going for a walk, for a cigarette”, distraction, while the best confronts the situation directly.

One of the younger traders says that he has a strategy and plan, but under the influence of chaos and events of the day, he changes it. For the best, such a situation is a rarity.

The key difference

The key difference lies in better preparation and better self-knowledge and techniques to deal with your own emotions. I know that this is a very general statement, but I will try to write more about the details and research results in the near future here on the blog. For now, let’s stay in the knowledge that such a significant difference has been detected and is well known, and the details (there is quite a lot) will be described here.

Returning to the best traders:

Repeated repeating becomes a daily habit, with time the best traders achieve what we can call a professional emotional maturity – a state when these strategies are applied without conscious effort, as part of a professional routine.