Covert Aggression Can Break Your Trades

OlympTrade Covert Aggression Can Break Your Trades
OlympTrade Covert Aggression Can Break Your Trades

Recognizing and Defeating Internal Aggression

There is not a person on this earth that is in perfect control of their emotions. Traders are also not perfect – they are after all human. The financial risks that go with trading tends to constantly push us to extremes. We’ll either feel empty, or content with ourselves.

If a situation is however particularly difficult, another emotion often comes to the fore – aggression. In such a case, it is much better to release the emotion immediately. Do not hold it back and then push it to the limit, which can lead to loss of money.

A harmless venting of aggression is in fact a good tool for a trader to remain emotionally stable.

Acknowledge Your External Aggression

Don’t be afraid to occasionally thump the table or swear. Aggression is a very common and normal emotion. It is good to work through it and get rid of it as soon as possible. The main thing to keep in mind is to find a way to release this negative energy in such a way no one gets hurt and nothing gets broken.

Although it may seem strange to talk about aggression in a trading context, aggression has a more dangerous cousin, known as covert aggression, which could harm your trades if you’re not aware of it. If you however understand the signs associated with it, you can easily blow off the steam and go back to emotional stability.

1.   Changing Your Style

If you understand what type of trader you are, you will be able to pick up if there is any covert aggression lingering in your subconscious mind. If you have tested various strategies and tried different approaches, you will probably over time have found the style that suits you best. You may prefer to invest through longer periods, or you may find that scalping works better for you.

Once you have settled on what works best for you and have been doing it comfortably for a while. You may suddenly inexplicably start thinking of changing your style.

This could possibly be an indication that your level of covert aggression has increased. An unexpected decision to switch from longer timeframes to scalping or vice versa is a 99% indication that internal emotional turmoil is at play.

If you have found a style that works for you and generates profits consistently, try not to “break” it by suddenly taking a different route, but rather focus on improving what you already have. If you don’t do this, you won’t be making progress.

There is definitely a causal link between trading failures and covert aggression, and every trader should understand this. Remember that it’s easy to transform your internal aggression to an external one. It’s always better to simply thump a table, but still follow your trading rules, rather than losing both your profit and your deposit.

2.   Making Random Transactions

Another clear another sign of the covert aggression is the lack of clear facts in a scenario. When a trader desperately wants to open a position. This feeling is often experienced by novice investors.

Do you experience situations where you have a chart displayed, have enough funds to trade, but don’t really know which analysis you need to perform? Somehow you can’t figure out if the price will move down or up, or how long the trend will last.

Every transaction should be an act done with confidence and determination. If there are any objective grounds for doubt, the deal should be postponed. If you don’t do this, you may triggers your internal aggressor and this could very well lead to you losing money.

In order to eliminate this situation from ever happening, you should focus on your current strategy and market analysis systems.

3.   Breaking Promises

Another indicator of increased covert aggression is if you find yourself starting to break your promises. Let’s look at an example.

A trader has had a good session and ended up being more profitably than what he had expected. He has a rule in place and has made a promise to himself that when this happens, he will only return to the market after a specific period of time, and he normally follows this rule. This time however, he is so excited by his success that he carries on trading, hoping to make even bigger gains.

The result of breaking your own promise by not sticking to your trading plan is most often bad. The trader might not only lose their profit, but also puts their initial deposit in danger. It is crucial that you always remember not to break your promises, either in trading, or even in life. If you do break you promises, you don’t control your own destiny anymore, but are a slave of covert aggression.

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