Why Emotions Are a Trader’s Worst Enemy
At fractal, we use science and math to combat a trader’s true worst enemy.
What’s a trader’s worst enemy?
Nope, it’s not the PDT rule or hidden broker fees … It’s emotions.
Wait … emotions? Yep.
Truthfully, trading is a game of you versus you. In the context of the stock market, emotions can be a weapon of self destruction … that can potentially blow up your account if you’re not careful.
But why are emotions so troublesome, and what can be done? Here, we’ll talk about how and why emotions cause so many problems for traders and how fractal can help you overcome them.
How Do Emotions Influence Trading?
When you think about how emotions influence trading, consider this question:
Why is it that computers are so much more efficient than people?
Because they don’t have emotions.
A computer isn’t going to make a dumb mistake because it’s preoccupied. You can’t say the same about a human who just had a fight with a significant other, missed the bus, or just got a parking ticket.
Computers don’t get hangry, they don’t overbook themselves, and they don’t have to worry about getting enough sleep.
Traders, on the other hand, do have to worry about these things. Emotions, both related and unrelated to the trade at hand, can affect their judgment and result in mistakes.
When you’re not in the right state of mind, you’re more likely to do things like rely on hunches and just go with what feels lucky rather than making a strong trading plan. Or, you might fall prey to the extremely dangerous “hold and hope” mentality that makes so many traders lose money.
Don’t despair … this is all too common. Everyone makes mistakes — even professional traders who have been at it for years.
As the adage goes, we’re only human. But to be successful as a trader, it’s extremely important to learn how to keep your emotions in check and have the right mindset when it’s time to trade.
Can You Take the Emotions out of Trading?
Keeping your emotions in check as a trader is easier said than done.
The many books, blog posts, and YouTube videos dedicated to the topic of trading psychology are evidence that many traders struggle with letting emotions get in the way. And many traders want to control their emotions to improve their trading.
But is that really possible? Is there really a way to take the emotion out of trading?
Not without a little help.
As a human being, you’ll never be able to totally take away your emotions. In the scheme of things, this is a good thing — it keeps you from being a sociopath! Nobody likes hanging out with a sociopath.
The good news is that you can remove emotions from the equation much more effectively with the right tech on your side. It’s all about helping refine your decisions by adding an emotionless resource.
Think about it. From calculators to price scanners to machine-formulated paint mixing, there are a ton of examples in everyday life of how technology can be used to help avoid human error.
Why not trading, too?
fractalerts: Data Driven Trades
The proprietary fractalerts system avoids the FOMO and emotions that get tangled into trades…
…and uses math and physics to deliver factual, precise trade alerts.
Just how impressive can the results be? According to fractalerts subscriber Francois B., it’s a real game changer. Here’s what he had to say after becoming a subscriber:
“It was a wonderful beginning of the year! As of this morning, since the start of the year, I have a return of 82.31%. Yes, I’m pleased with your system!”
So what’s different about fractalerts?
It’s a system based on factual, data-driven results. fractalerts is not based on hunches, fickle press releases, or what’s trendy right now.
It’s driven by pure mathematics.
This unique system finds fractal patterns by sifting through a ton of data and finding patterns that aren’t necessarily observable by the average individual trader.
Within this data, the program finds patterns that would be nearly impossible for humans to pick up on.
Not only is the system faster and stronger than a person, but it takes human error out of the picture.
This allows fractal to make incredibly accurate calls on trades.
In the past, anyone who has continually bought when fractalerts says “buy” and sold when the math says “sell” has made money.
Among our subscribers?
- Big banks (you definitely know their names)…
- Hedge funds…
- Institutional money managers…
But the system isn’t limited to just corporate types and suits. It’s now available to individual investors.
We have a variety of different alerts to choose from, including indices, commodities, forex, and bundle packages.
Another unique thing about fractal? We actually make the trades we showcase in our alerts.
As a subscriber, you’ll receive a notification 12-24 hours before the trade, including specifics. From there, you’ll have advance warning so that you can use our technology to your advantage. You’ll have time to check out the trade, do your own research, and make the decision for yourself.
It’s the best of both worlds: factual, data-driven information and the freedom to make your own decisions when it comes to trades!
Ready to try fractalerts?
fractalerts takes a different approach to trading. Instead of following trends or hot companies, it looks at data and finds strong potential trades based on data, evidence, and numbers.
This proprietary system takes emotion out of the equation … and helps investors find trades that they might not have discovered otherwise.
Global banks and fund managers rely on fractalerts. Are you interested in upping your trading game and getting in on the action? Consider subscribing today.
How have emotions gotten in the way of your trading?