Trading is as much about psychology as it is about strategy. Yet, despite knowing this, a lot of new traders get caught up on an emotional rollercoaster.
Without the right mindset, emotions such as fear, greed and frustration take over, leading to costly mistakes. It is estimated that about 80 per cent of new traders lose money in the market, many of them within their first year. So how do you stop emotions from sabotaging your trades?
Know your emotional triggers
The first step in managing emotions is simple: recognise them. I have seen it countless times – a trader starts panicking after a couple of losing trades, and before they know it, they are making rash decisions, either doubling down or pulling out of trades too early.
Or on the flip side, greed kicks in when they have had a few wins, and they start taking on more risk than their plan allows.
So, what are your triggers? Do you feel anxious when the market moves quickly? Do you feel an urge to make up for a loss? Once you are aware of them, you can start taking steps to control how you react in the heat of the moment.
Create (and stick to) a trading plan
If I could give one piece of advice to new traders, it would be this – have a plan and stick to it. A trading plan is your safety net, it gives you something to hold on to when emotions are running high.
A solid plan outlines everything from when to enter a trade, when to exit, and how much you are willing to risk. When emotions flare up, the plan reminds you to stay on course, instead of making decisions based on fear or greed.
Limit your exposure
Here is another critical point – do not risk too much on a single trade. One of the most common mistakes I see among new traders is overexposing themselves. It is tempting to go all in when you think you have a hot streak, but that is a fast way to lose everything.
The general rule of thumb is to only risk 10 per cent of your trading capital on any single trade. Why? Because it keeps you from putting all your eggs in one basket. With less at stake on each trade, the emotional highs and lows are much easier to manage.
Don’t let fatigue make decisions for you
Trading can be mentally exhausting, especially if you are glued to your screen for hours. Fatigue is your worst enemy when it comes to rational decision-making. When you are tired, your ability to think clearly drops, and your emotions take over. That is when mistakes happen.
One thing I tell my team and customers is to take regular breaks. Get up, move around, clear your head. Remember, trading is a marathon, not a sprint.
Learn from every trade
If you really want to improve as a trader – and keep your emotions in check – you have to learn from your past trades. Keeping a trading journal is a great way to do this.
Write down what you did, why you did it, and how you felt at the time. Over time, you will notice patterns – maybe you tend to rush into trades after a loss, or maybe you hold on to trades for too long out of fear of missing out.
Accept that losses are part of the game
One of the hardest truths in trading is that you are going to lose sometimes. And that is OK. Every trader, no matter how experienced, suffers losses.
The key is to accept this fact and not let it spiral into emotional decision-making. When you do not expect every trade to be a winner, it becomes easier to stay calm and stick to your strategy.
Your emotions are not the enemy
Emotions are not the enemy – they are part of what makes us human. By recognising your emotional triggers, sticking to a well-defined plan, limiting your exposure, and learning from every trade, you can stop emotions from getting the best of you.
Trading is not easy, but with the right mindset and approach, you can stay level-headed and make smarter, more rational decisions. And that is where real success lies.
Tony Hallside is chief executive of STP Partners
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Four stars
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Essentials
The flights
Emirates flies direct from Dubai to Seattle from Dh6,755 return in economy and Dh24,775 in business class.
The cruise
UnCruise Adventures offers a variety of small-ship cruises in Alaska and around the world. A 14-day Alaska’s Inside Passage and San Juans Cruise from Seattle to Juneau or reverse costs from $4,695 (Dh17,246), including accommodation, food and most activities. Trips in 2019 start in April and run until September.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
RESULT
Esperance de Tunis 1 Guadalajara 1
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’
UAE currency: the story behind the money in your pockets
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs
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Transmission: 9-speed auto
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
RESULTS
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7.40pm: Maiden Dh 165,000 1,600m
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8.15pm
Handicap Dh 190,000 1,400m
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8.50pm
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9.25pm: Handicap Dh 175,000 1,200m
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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Price: Dh4,649
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The biog
Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
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He relaxes by spending time with his family at home, and enjoying his wife’s India cooking.
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Started: 2021
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