Trading is very stressful and applies a lot of emotional pressure as you see your account value rise and fall each day. This section of your Battle Plan is where you analyze your belief systems and emotional reactions learned from previous trading and other life experiences. Allowing emotional reactions from a previous trade to affect the next trade prevents you from following your system in a consistent manner. It’s impossible to get consistent results and profits from the markets if you don’t approach them with consistency or if you allow emotion to pull you away from following your trade plan.
Carefully consider each question and answer as honestly as you can. There is no right or wrong answer. There is simply, “what is” which is where you are right now. This isn’t a race so take some time in reflection before answering each question.
Developing the ability to approach the markets in a systematic and unemotional way, trusting in the statistical expectations of your Natural Trading Style is the best way to get past the unhealthy emotional swings otherwise caused by trading. Successful traders have learned to discipline their emotional reaction to the outcome of individual trades and instead focus their attention on following their trading process or trade plan. They don’t let fear or greed whipsaw them into or out of trades at the wrong times.