Boss Trading—Redefine Your Trading

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"I Hate You So Much Right Now" How to avoid emotional turmoil trading

Fifteen years ago, I traded on a desk with a group of brokers and money managers. Instruments traded included futures, options, equities CFD's and currencies. 

I was fortunate to witness the reactions of many traders. It was a mix of exhilaration when markets went a trader's way and irateness when they didn't. The outbursts are memorable. 

Years later, I traded on a proprietary trading desk. The difference? Far fewer, more subdued outbursts. Why the difference?

The first group suffered from a love-hate relationship with markets. And many independent traders experience this. So let's cover the root cause. 

Think of the video game Pac-Man. Pac-Man must eat all the dots inside an enclosed maze while avoiding four coloured ghosts. 

Most traders focus on eating the dots. They are oblivious to the four coloured ghosts.

The good news is the market tells you, but there's a catch. Traders have to learn its language. Competency in essential trading skills is how you comprehend what it's saying.

It's best to watch a professional trader break down their live trading in real-time. It takes 3-5 years off the learning curve. Trading firms around the globe take this approach to training their newest traders. 

The real-time footage below is an excerpt from Tuesday's trading. It includes identifying and banking dots plus identifying and avoiding the coloured ghosts. A 12-minute clip, providing a comprehensive explanation.