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Control Excessive Emotions when Trading Stocks, Here's How!

Control Excessive Emotions when Trading Stocks, Here's How!

Excessive emotions can arise when the trader is in the market. The causes of emotions for a trader are various. It can be from market movements that do not match the analysis, being exposed to stop losses, and other risks in trading that at any time can happen to a trader. Emotions are naturally felt by a human being, but a trader's maturity will be tested when they understand how to manage emotions.

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Well-managed emotions can be a weapon to survive in uncertain stock market circumstances. No one can determine exactly which way the market will go but we ourselves can regulate emotions by applying discipline and using the right stock trading tips.

Not only happens to novice investors, even senior investors can also experience emotional turmoil when their trading plans are not in accordance with market conditions. Therefore, it is very important to be able to apply good ways of managing emotions as will be discussed in this article. 

In addition to regulating emotions when trading, using trusted securities services such as Mandiri Sekuritas will also provide a sense of security and comfort in stock trading. Mandiri Sekuritas is here as a partner to help traders in every trading activity in the market.

Always remember and focus on the initial goal of investing

Before starting to invest, we must initially have a goal that we want to achieve. There are those who want to achieve financial freedom, have passive income, for future funds, and so on. 

Whatever the investment goal, you must keep in mind and be consistent to achieve these goals. By focusing on the initial goal, we will be able to survive not to vent emotions no matter what happens in the stock market.

Have a Trading Plan

No matter how large your funds are, your investment performance will be difficult to develop if it is not supported by a good trading plan. When we make a trading plan, then we have made an investment plan along with how much profit we want to get. 

A trading plan can also make our trading activities more in line with the real situation, say that you expect to sell shares at a price of 3250 but it seems that resistance is at 2600 then of course your expectations are unrealistic. A trading plan will also help you in determining when to exit the market so as not to get carried away by the flow which can lead to large losses.

Also Read: Mutual Funds or Deposits, Which One Is More Profitable?

Be consistent with the Trading Plan that has been created

There are times when we have made a mature trading plan and implemented it, the conditions in the real market can actually have the potential to provide many times the profit compared to the trading plan you made. 

This condition can provoke you to act outside the trading plan, such as choosing not to exit while hoping to get more profit. However, this is often the beginning of losses because no one can guess exactly where the market will move. 

Emotions are then created when the market reverses or the price does not move according to the forecast. Being greedy or greedy can make emotions labile which eventually you may make decisions that are not based on logic and will lead to failure in trading.

Also Read: 5 Advantages of Futures Trading Over Conventional Business

Have a stock portfolio of companies of different types of business

The business world is colored by news of companies whose performance is up and down. Ups and downs in the business field are not new, because the business world is dynamic. 

Companies whose shares you own may show a decline in performance that will have an impact on volatile stock prices. This is where the importance of diversification in the stock portfolio, which in this case is the shareholding of companies of different areas of business. 

For example, in addition to owning shares in energy companies, you can also own shares of companies in the consumer and banking fields whose performance is stable. This is also done to maintain your psychology as a trader so as not to rush to withdraw funds from the stocks you own.


It is normal to rest after feeling tired from doing an activity, and this is also good to do when trading. A person in a tired state is prone to making decisions that are not well thought out due to reduced logical capacity due to low energy. 

Fatigue can also cause excessive stress which can affect health. If you want to be in the world of trading for a long period of time then it is highly recommended to be sensitive to situations where you need a moment to take a break from stock trading activities. Break time can also be used to review the strategy in your trading plan.

Emotions are naturally felt for humans, especially a trader who is struggling in the world of stocks which in fact is something dynamic. Controlling emotions is important here because although we cannot control the direction of the market, we can control our own emotions in responding to what is happening with the performance of our stocks. 

In addition to the ways of managing emotions discussed above, trading stocks with reliable partners can also help us in emotion management. 

Mandiri Sekuritas is here as your partner in stock trading by providing a reliable trading platform accompanied by a variety of portfolio options to diversify your investments. Immediately visit MOST to get more information about Mandiri Sekuritas, your trusted partner in investing.

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