Have you ever heard of the concept of "emotional anchor"? What effect does an emotional anchor have on forex trading? This article will share a few useful things about it.
To put it simply, an EMOTIONAL ANCHOR is an emotional state ATTACHED to a moment of emotion. It can be JOY when WINNING, SADNESS when FAILING, JOY when... BEING ASKED TO KISS BY YOUR LOVER... Many, many emotional states are associated with moments in life living.
And an EMOTIONAL ANCHOR is an INTENTIONAL activity (intentional to do it) of us, about a moment that happened in the past, is happening in the present, or will happen in the future. It has something in common with conditioned reflex activity.
So, what effect does an emotional anchor have?
Yes ! It has a great effect in controlling our psychology - emotions - thoughts. And, obviously, it has a great effect in the forex trading process.
Here are a few examples of applying emotional anchors to forex trading:
- When you win a trading order, the feeling at that time is joy, anchor it. In the future, when boredom occurs in forex trading, think about that feeling, "pull" it out and "feel it again", you will be motivated to continue trying and overcoming it through difficult times.
- When your account is blown up, the feeling is extremely bad, and there is regret (because of entering the wrong order, or due to objective factors affecting that negative result), anchor it again. Later, in the forex trading process, before important moments or trading decisions (for example, if you intend to go full margin), think about the feeling when your account explodes - it's bad, to remind yourself to be more careful, or consider one more time before making that decision.
So, how to practice emotional anchoring in forex trading?
Very easy, for each important moment in the forex trading process, when that moment occurs, focus for a short period of time (just about 10 - 15 seconds), focusing your mind to observe yourself. your own emotions, and "mark" the moment of that emotion, the easiest way is to attach it to a "separate action" that you set yourself. Then, every time you need to "pull that emotion out", focus on thinking about the emotion at that time, and take a separate action to go with it. That is enough!
For example: When you win a trading order, close your eyes to feel the joy, focus your mind on observing the evolution of that emotion in your body, and at the same time, clench your hands and mouth. uttered a "yeah". Ok, that's enough formality for the emotional anchor. And when you need to "pull" that state out, for example when your trading system is at a standstill and constantly losing, you are depressed and want to regain the feeling of winning, then focus on thinking about " that feeling of victory" - obviously must be accompanied by the act of clenching your fist and "yeah", then the feeling of victory will be "retroduced" (sounds funny and unrealistic, right? But the effect is different.) Here I use the word "temporary enough in terms of formality", because to perform emotional anchoring requires a whole process of practice, until you become proficient, it is not necessary to use accompanying actions to express emotions. Try to seriously think about this, and seriously practice - practice, then over time you will realize the difference.
And, here are the details of emotional anchor states and when to apply them in forex trading, including:
- The joy of winning a trading order => Used to motivate yourself in difficult times.
- Bad feeling when your account explodes => Used as a warning before intending to go "full margin" with the market.
- Hopeful mood when starting a new account => Used to restart psychology after a losing trading cycle.
- Feel very confident when achieving a series of consecutive winning orders => Used to create motivation when falling into a deadlock period.
- Extreme deadlock when losing continuously => Used to warn yourself when winning continuously and starting to fall into a state of overconfidence.
- Feeling of financial hardship when there is no more money in your account => Used to warn yourself to restrain yourself when your profits are getting bigger and your account is growing too fast.
- The feeling of making money easily due to big and continuous wins => Used to motivate you to try harder when you run out of capital in your account.
- In addition, emotional anchors in the process of building and perfecting the forex trading system are also extremely important. You can anchor emotions at times of the market such as: At the top, at the bottom, at the retracement trend areas, at resistance and support levels, at trend line asymptote areas, at signals from technical indicators, and many other "important milestones" in the trading process forex, we need to use emotional anchors.
Within the scope of this article, I only suggest the issue and share some of the above things, which are really important in controlling forex trading psychology. In more detail, how effectively it is applied depends on each trader.
Hope this content will be useful to you. Please share it if you find it interesting. Thank you for that.
See you again in the next articles.
Best regards,
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