Traders blame emotions for losses, but the real problem is an unproven strategy. Define your approach, validate it, then size positions with fixed dollar amounts per trade. A solid strategy with proper risk management keeps emotions from derailing you.
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. 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 five tier trade to shift you up and down, even if you have the best strategy in the world, your emotions will hijack your process.
