# Emotional Management *Logical decision making on trading* By [sofisticat](https://paragraph.com/@sofisticat) ยท 2022-12-04 emotional management, crypto, trading, stock, decision making --- The feeling that comes after an unsuccessful trade equals the pain that comes after a breakup. It is not a joke, emotionally our brain will activate the same as that activated while you are having physical pain. Especially when it comes to trade, we may win and we may lose. Even the best traders will have time intervals that they will lose consecutively. The vital point is to be able to continue after those losses which is something that I would like to write about later on, risk management. What makes emotional management important is not only the idea of being able to be consistent, but it will also affect your life in a way. Think of a person that needs to make decisions that will risk his/her life quality every time. Let's continue by answering a few questions. 1. Have you ever asked yourself how many crucial decisions you make in a day? 2. What are those decisions rely on? 3. What is the average percentage of being accurate according to your backtracking test? 4. What is your current emotional status? Let me try to give you insight into each of them. ### How many crucial decisions do you make in a day? According to Barbara & Jamie (they have a book named "Bad Moves") we make 35.000 decisions. There is an erosion demonstration in Capilano Bridge Park. ![](https://storage.googleapis.com/papyrus_images/7b4c532a825b29ac02a428b686cda54b.png) **Source: Hanna Kim Medium** If we assume 15 years of erosion equals 35.000 decisions you may make your equation about it. Of course, they will be grouped according to weight but let's say you have had a challenging day/week/month that requires you to make plenty amount of decisions. The serious decision that you need to make at the end of that time might not be as healthy as you have expected. That's why we need to have specific road maps and strategies, in life or trading doesn't matter. If you have a specific schedule as I do, it is best to list them down and think about how stressful it is in general. * I will wake up and start working from x-y. At work, I am responsible for z amount of people. * After that, I need to return home during rush hour which takes 1 hour. * I am gonna take a shower, eat something, and be ready for the shift(trading in my case). * I will make my plans and read the charts to get ready for tomorrow. Everything will be predetermined if possible because at work I will not be able to make those changes. Let's say this has been your routine for a year or two. This might be equal to 35.000 decisions for a strong and disciplined person like you. In conclusion, It might differ from person to person. What are those decisions rely on? --------------------------------- It might be emotional or logical but you need to separate them. Emotional decisions should be for your beloved ones. Never take something personally when it has a logical aspect. If you believe that you have made a decision that is emotional instead of a logical one prove it to yourself. What were the assumptions? Why did you do that? Was it because of your greed or something else? Extend the questions unless you prove to yourself that you did it wrong because of your emotions. This is valid in your professional life not in your personal. Don't be a robot, please. :') ![](https://storage.googleapis.com/papyrus_images/e7e4d849f6c6a11cfd01a4e521faa764.jpg) **Source**: Blue frog robotics, Buddy. What is the average percentage according to history? ---------------------------------------------------- It is important to take notes. Otherwise, you will not be able to analyze your background. Tracking is essential. If the standard deviation has increased just because of this decision, it means that you are not on the right side. stop and think about it. What is your current emotional status? -------------------------------------- Emotions can deflect your logic. That's why we need roadmaps and plans for common situations. You may prefer to take a break for a while if possible. You can return back shining and glorious. In conclusion, when I made a mistake: **First**: I will try to prove it to myself with solid pieces of evidence. **Second**: I will heal my wounds by learning about my mistake and lack of points. **Third**: I will never let those scars be removed from my body. Don't be harsh to yourself but never let that mistake be repeated. --- *Originally published on [sofisticat](https://paragraph.com/@sofisticat/emotional-management)*