All price actions in stock critically depend upon the emotional decisions from varying market participants. There are many degrees of emotional surges, waves of panic and despair that drive the price up and down. Ultimately, the success in the market is the combination of anticipating the next moves of all other market participants who may enter with stock.
In the world trade market there are trade masters, who have control over their emotions and having the logically thinking mind. Only gamblers trade with their emotions. A gambler is only reacting based on his emotions and without logic or forethought in what he does. Whereas, a master trader trades with proper logic plan and controls his emotions.
Steps for controlling emotions and gaining trading discipline:
- know what you are going to do before you do it
- develop your own unique trading technique
- ignore the money
- don't count your profits before ending the trading day
- know your risk tolerance
- know your financial self-wealth
- treat it like a business
- do paper trading regularly
- be self reliant and take responsibility to your trades