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Mahesh Kumar
Investor/ Part Time Trader
Asked a question 5 months ago

Why is it so difficult to control emotions while trading Options?

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Controlling Emotions is very difficult as a trader. But it is not impossible! 

I will suggest you to take up 30 days challenge which FYERS provides. As I have personally, learned to control my emotions and not over trade during the challenge. Take it is as a serious challenge; you will be able to win the challenge and also boost your self-confidence. By this month on month, you will slowly improve your phycology and then you will automatically control your emotions. I feel Fyers are doin a great work towards the traders. They are at least giving us back the brokerage amount as a reward which is unique and no other brokers do this. 


I do day trading and work in the night. Hahah

A trading journal is the best friend of a trader. No trader should trade without having one. The reason is when your bad feelings take over, the journal will remind you of all the things you've done well. Maintain one. If you do not have one, you can create your own or download it over the internet!

Practice in stock / cash market first.

Quantity Management & Risk Management plays important role in Emotion Control.

Keep quantity on extreme low side (minimum possible quantity to trade) and maximum risk of 1% per day or per position. You will find controlling emotions is comparatively easier. Then if you are confident and profitable, slowly increase quantity, next month. Repeat this process on monthly / quaterly / half yearly / yearly basis.

Most importantly, stay away from all Margin / Leverage products like Futures and Options, till then.

All the best.

If someone can't control his emotions in trading,  emotions Wil lead to losses. I do not know ,what's ur trading style, what ever it might be,try less screening time strategies,so ur pnl won't hurt u, automatically ur emotions wil nullify. Stock market Wil run in fear and greed basically emotions in short term. Try a strategy where ur stop loss is in system, so u need not to look into  the system, frequently, so ur emotions won't play..Hope. this helps

Make sure to stay calm and focused throughout the day, and this is what professional traders do. Just make your decisions based on a solid reason, not on emotions!

Don’t confuse prudence with fear. You want to trade prudently, using logic and reason. This may make you hold off on a trade. But make sure that prudence, and not fear, is behind your decision. Fear can wreck your trading by keeping you from making a trade. Use your trading journal to see if the trade makes sense, follows previous wins, or if the trade just doesn’t make sense.

Don’t marry your positions. It’s easy for a trader to get stubborn, and to hold on to a trade just because he ‘hopes’ it will turn around. Close down a bad trade as soon as possible, take your loss and move on. Your trading journal will suggest the next move.

Not only chart analysis.....we can use + data analysis. Our emotions ..... control.