How can an individual manage the emotional volatility that comes when trading?

Imran from UpandDown town


Imran, you have asked a whale of a question, and by whale, I mean Blue Whale …

One reason your question is so huge is the trading world consists of as many different types of people as are found in any population on the planet. This means that what might work for one, might not for another. Another reason is the number and variety of ways traders tame their emotions is as huge as, well, a Blue Whale.

Given the above, and given that I don’t know you, I will give you some general principles that work for me and might help you find a path to controlling your emotions when trading.


Frustration is one of the big emotional “bombs” in trading. Often, when trades don’t go as we planned, we feel frustrated. We can’t understand why the trade did what it did. Keep in mind fundamentals and emotions cause markets to move. You have no control over the markets. Find your edge and stick with it.

Greed and Fear

These two emotions create most, if not all, market and trading problems. Trading with a solid, rules-based strategy that defines profit and loss ahead of time will help you eliminate these emotions. Remember, trading from greed or fear is not in your best interest, nor is it good for the markets. Always trade in your own best interest.


Trading is not about winning all of the time. You will lose, and when you do, shake it off and move to your next trade. If you have set yourself up with a solid, rules-based strategy, then your losses will be within your ability to absorb. Losing and winning are trading. The goal, however, is to win more than you lose.

Nothing about trading is personal. It is all business, and if you treat it like a business, this will go a long way to helping you curb the emotional volatility you referenced. In the end, if you treat money as the product of your efforts, not the aim of your efforts, you will find that you focus more on the process than you do the end result. This alone will make your emotional trading mindset better.

Trade in the day; invest in your life …

Trader Ed