Open trading account 
Posted by RUFUS @ RTM
Have you ever thought of the effect of watching randomness in the markets on your mind? Focusing on every tick or gyration in the chart. Every 1 minute candle just to see how your "Live" position is doing?
Some behavioral economists estimate the negative effect to be up to 2.5 the magnitude of a positive one. Do you see how this can drain your mind rather quickly. For every 1 tick against my position I need 2.5 ticks in my direction just to balance the potential emotional deficit. This is also why we will at times have mental blinders on when a position is going wrong and all we are looking for are reasons for it to turn back in our favor as opposed to just closing it out. We will looking for something positive to offset the negative.
So even a position going in your favor can have a drain on you. This is also why we will feel a relief when we close out a position even one that is positive. I don't believe it is possible to completely divorce your emotions from your trading. We just need to learn how to deal with them. Tricks that may only work for you.
This also explains why trading a practice account is much different then a live one. Practice ones don't have as much emotion attached to the position.
That 2.5 number I am sure is not a hard and fast standard for all. I am sure there are traders out there who have it much lower. It was just an interesting concept I thought to share here.
Have you ever thought of the effect of watching randomness in the markets on your mind? Focusing on every tick or gyration in the chart. Every 1 minute candle just to see how your "Live" position is doing?
Some behavioral economists estimate the negative effect to be up to 2.5 the magnitude of a positive one. Do you see how this can drain your mind rather quickly. For every 1 tick against my position I need 2.5 ticks in my direction just to balance the potential emotional deficit. This is also why we will at times have mental blinders on when a position is going wrong and all we are looking for are reasons for it to turn back in our favor as opposed to just closing it out. We will looking for something positive to offset the negative.
So even a position going in your favor can have a drain on you. This is also why we will feel a relief when we close out a position even one that is positive. I don't believe it is possible to completely divorce your emotions from your trading. We just need to learn how to deal with them. Tricks that may only work for you.
This also explains why trading a practice account is much different then a live one. Practice ones don't have as much emotion attached to the position.
That 2.5 number I am sure is not a hard and fast standard for all. I am sure there are traders out there who have it much lower. It was just an interesting concept I thought to share here.