Controlling emotions that cloud our judgment

I have been a trader long enough to know a thing or two about all sorts of emotions traders experience in the market.

You see, we all go through similar thinking patterns and emotions as we trade, so it’s important we address these and learn how we can control them.

And the emotions we are going to discuss in this course are of the more dangerous kind because they can cloud your judgment and prevent you from seeing things as they are.

These psychological stimuli include euphoria, regret and stress.

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While feeling euphoric is usually a good thing, when it comest to trading, it classifies as a variety of greed which arises after one has experienced a number of winning trades. It can often lead one to become overly confident and enter new unplanned positions, usually in the same direction as the previous winners.

It is for this reason that most traders experience their biggest losing periods right after they scored a couple of winners in the market.

And as the saying goes, after the sunshine the rain begins.

Euphoria has its way of making traders feel like their understanding of the movement of currency pairs is perfect and they found a flawless win-win approach to Forex trading.

But in reality, more often than not, it leads to trading errors and losses leading up to the slippery slope. It can often cripple traders’ trading success, cause them to abandon their strategy and go ‘head first’ on the markets without carefully analysing the market conditions.

So how can you ensure that you won’t fall victim to euphoria?

Trading psychologists believe that the best thing to do is give yourself a break after winning or losing a trade and come back to the market on another day. This way, you’ll have enough time to process your wins or losses and analyse the decisions that led to them.

It is also super important to remember that even though it is tempting to jump right back in and try to ride the winner’s wave for as long as you can, you gotta remain level-headed and draw a big, fat line between the momentary sensation and reality.

Our advice?

Allow yourself to feel proud of your success, and make sure you remain grounded in your decisions and every position you enter is preceded by following the steps in your trading plan. This way you will be able to approach every trade with a clear and level perspective.


Regret, also referred to by trading psychologists as the “fear of missing out” often pushes traders to enter into positions, even after the window of opportunity has already closed.

I mean.. let’s be honest, we’re all guilty of this..

Personally, I may have done it once or twice…….

And as you probably know yourself, regret more often than not results in loss as traders are simply too late to enter.

It can often act as a demotivation factor, instilling doubt in one’s mind, blurring their judgment, and eventually leading to frustration and the potential end of trading career.

The key to dealing with emotions of regret is to maintain your trading discipline, follow your strategy, and know that there are other (perhaps even better) opportunities out there.

And remember, even if you’d missed out on an opportunity, don’t let it bring you down.

Get back to the market and analyse it with a fresh pair of eyes without considering the burden of the past trades.

At the end of the day, the feelings of regret have nothing on the feeling you get when you win!

So what are you waiting for? Go find that winning setup!


There are times in our lives when events beyond our control affect our ability to think clearly.

It could be anything from stress at your work to stress at home or illness…

There’s no factor too small.

And all these things causing you stress can cloud your judgment and distract you from trading.

So if you’re going through a stressful period, it’s often safest to put your trading on hold until you can commit the necessary time and energy to it again.

After all, the changing nature of the market is stressful and demanding enough.

You can always get back to it once you are ready to give it your undivided attention again.

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