Emotion has no place in forex. The false confidence after closing that big forex trade can lead to stupid risks. And the sting of a bad trade makes you want to try and “make up” those lost profits. Let’s look at five easy ways you can trade forex without emotion.
1. Start using limit orders, now
Limit orders are a great way to trade forex without emotion. You set a price at which the limit order will execute. If the chart price reaches that level your limit order becomes a real trade.
A solid strategy is to set reverse limit orders at price areas called pivot points. When the price reaches a pivot point it often loses steam. After your limits are setup walk away. Being away from your charts as the action unfolds removes the dangers of emotion.
2. Turn on those automated forex robots
Only one method can remove emotion from the trading process entirely. And that’s a forex robot. Logical and precise by design. It crunches numbers without any feeling whatsoever.A cold, calculated forex robot will execute the same rules every time. Set it up, walk away, and check back in a few hours. It’s the only sure way to trade forex without emotion.
3. Practice the one trade a day method
Trading less is something few people ever learn. The urge to always have a position open is powerful. But it’s trade quality, not quantity, that really matters in forex.
So start small. Limit yourself to one trade a day. Whether it wins or loses. Your focus will improve and you’ll feel a lot less anxious to always be in the market. Having a good night’s sleep between each trade makes sure any leftover emotion is gone by the next day.
4. Set it and forget it with stop loss and take profits
Opening trades and walking away is a simple method of removing emotion. How can you be upset about a losing trade if you’re not even aware of it? That’s where setting TP and SL can be a big help. They’re ready made to help you trade forex without emotion.
With every trade set both a stop loss and a take profit. Then get up and leave the room. Eventually the order will hit a level and close itself out. When you’re not in the room there’s no emotion to mess with things.
5. Trade forex without emotion by using micro lots
Starting out with full lots is forex suicide. Not only will it inflate your anxiety but it can quickly lead to margin calls or worse. So lower the stakes and your stress by trading micro lots.
At cents on the dollar, micro lots make mistakes forgivable. Without the stress of losing tons of money you’re more likely to make some actual profits.
P.S. Want to eliminate emotion in five minutes?
If you’re looking for a quick way to trade forex without emotion check out Vader. It’s a great automated expert advisor that can help you get a leg up on your trading. Take a gander at its latest results to see if it’s right for you. Good luck and happy trading!