Using AI to Take the Bad Emotions Out of Trading

Any winning trader or investor will be quick to tell you just how important managing emotions is for achieving long-term success. Hope, fear, and greed are all feelings that move the markets daily and impact all market participants. Accepting the reality that you will face these emotions frequently will help you stay prepared to manage them and avoid letting them negatively impact your decision-making.

In simple terms, as a trader, you never want to let your highs get too high or your lows too low. Finding that happy medium between enjoying your wins and not beating yourself up over losses is really what separates the true professional traders from the amateurs. The sooner you realize trading is about probabilities and that you cannot possibly win every trade, the sooner you can learn to take the bad emotions out of trading.

As you get deeper into your trading journey, you start to recognize the value of finding healthy ways to manage stress, dealing with negative emotions, and disconnecting from the market. For example, practicing mindfulness and meditation is a great way to manage bad emotions constructively. Other traders are passionate about fitness and using exercise to deal with the emotional roller coaster that trading can take us on. For example, heading outside for a short 15 to 30-minute walk when you aren’t trading your best or playing your favorite sport after a long day in the market can be exactly what you need to stay laser-focused and clear-headed. 

You might even consider investing in quality home fitness equipment like a Peloton PTON and using it to take a midday break so that you can come back and finish the day fresh. If you have been following Peloton over the past few months, the chances are good that you have been exercising a lot to deal with stress as the stock has declined over 44% from 52-week highs thanks to treadmill safety concerns and a selloff in growth. On the other hand, Peloton shorts have likely enjoyed the decline and perhaps used their profits to purchase a new exercise bike.

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Yoga is another great way to clear your mind and stay fit outside of the market, and you can’t go wrong with purchasing high-quality athleisure wear from Lululemon LULU to make your sessions more comfortable. Dicks Sporting Goods DKS is another retailer to check out if you are interested in high-quality fitness equipment and clothing that will motivate you to relieve stress in healthy ways through exercise.

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DKS up or down? Learn more

While Lululemon stock has been taking a beating over the last few months, if it can reclaim the 200-day moving average it might be worth a look for a swing trade. Dicks Sporting Goods is one of the more intriguing names in the retail space, and the stock has rallied over 51% year-to-date as people start playing sports again in the wake of the pandemic. There’s something truly satisfying about working out in clothes from these retail companies and then making gains with their stocks.

The bottom line is that the human element of trading can be the most damaging thing when we are trying to accomplish our goals in the market. If you don’t learn to manage your emotions, the market will eventually swallow you whole. While managing our feelings while trading seems like a huge challenge, the good news is that we live in a world where technology is changing almost every facet of our lives. Artificial Intelligence, for example, is one of the most fascinating technological developments in recent years and could offer another smart way to take the bad emotions out of trading. 

What if you could find a system powered by AI that gives traders directly actionable insights that are data-driven and not based on opinions or feelings? That way, you could come into each day with a specific plan that you are confident in, ensure that you stick to all of your rules, and keep your emotions in check. This is the beauty of VantagePoint, a world-leading patented AI software that provides up to 87.4% market forecasting accuracy. 

Instead of focusing on past price action to make predictions, VantagePoint applies an AI Neural Network to forecast market data and help you stay ahead of the curve. With the system’s precise forecasts of a trend’s direction 1-3 days in advance, you can avoid emotional decision-making entirely and have the confidence to take your trading to the next level. Check out why over 32,000 traders are already using this system to take emotions out of the equation with a free live training.