Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Great posts by Nagual and dirt. I will share my struggle with emotions throughout my trading career. I was starting out in the gold pit in the early 80s and my emotions were all over the place. I had a great trading experience prior to this but assimilating into the culture and the process of pit trading was a major challenge. I was then given advice by an older and much more experienced trader. He was like Yoda who told me to think of my feelings, positive and negative, and to put them in their places. So each morning when I awoke, I would meditate and think of what emotions to avoid:
Fear, desperation, euphoria, feeling of hope for a position to turn right, anger, and other negative emotions. I would then think of what characteristics that I wanted to have while trading:
Analytical thinking, focus, professionalism, discipline, objectivity, etc.
It worked well for me as I learned how to shout my bids and offers without timidity and to be assertive. But sometimes, no matter what we do, our emotions get the best of us, sometimes in ways that we don’t even recognize, possibly because of something going on at home. In 1989, my father was dying a slow death. I was in a total self-destructive emotional mode, doing bad trades and fighting with other brokers. I then decided that the only way I could learn to focus again was to do something different. I decided to go into the coffee pit and learn a new market, new people and new culture. It worked ok for me. But as Nagual and dirt have stated, emotions, especially fear are not a trader’s friend.