Most traders blame emotions for losses, but you need a proven strategy first. Risk sizing is what actually controls emotions: risking $50 per trade keeps you calm enough to execute consistently, while risking $5,000 makes even good strategies fall apart.
There's so many traders that I've come across, they'll say, I know how to trade, but it's my emotions. And I'm like, okay, what's your strategy? Walk me through it. Has it been proven? And they're like, no. Then how do you know it's your emotions? Because when I trade, I get this and I feel that. And I'm like, how about we work backwards? So let's say this is strategy and let's say this is emotions. Your strategy needs to be focused first and your emotions needs to be low. And then your capital picks up when your strategy becomes more repeatable. So for example, if you're risking $50 a trade and let's say losing $50 a trade doesn't really bother you, it's going to allow you to operate your strategy a lot more effectively. But now if let's say losing $5K a trade is going gonna like shift you up and down. Even if you have the best strategy in the world, your emotions will hijack your process.
