Using AI to Take the Bad Emotions Out of Trading – About Your Online Magazine


Some winning trader or investor will be quick to tell you how important it is to manage your emotions in order to achieve long-term success. Hope, fear and greed are all feelings that move markets daily and impact all market participants. Accepting the reality that you will face these emotions often will help you prepare to manage them and prevent them from adversely affecting your decision making.

In simple terms, as a trader, you never want to let your maxims get too high or your minimums get too low. Finding the middle ground between enjoying your victories and not blaming yourself for the losses is really what separates true professional traders from amateurs. The sooner you realize that trading involves probabilities and that it is not possible to win all trades, the sooner you will learn to eliminate bad emotions from negotiation.

As you go deeper into your trading journey, you begin to recognize the value of finding healthy ways to manage stress, deal with negative emotions and disconnect from the market. For example, practicing mindfulness and meditation is a great way to control bad emotions constructively. Other traders are passionate about fitness and using exercises to deal with the emotional roller coaster that trading can take us on. For example, going for a short 15 to 30 minute walk when you are not trading your best or playing your favorite sport after a long day at the market may be just what you need to stay focused and lucid.

You can even consider investing in quality home gym equipment, such as a Peloton (NASDAQ: PTON) and use it to take a break at noon so you can come back and end the day fresh. If you’ve been following Peloton for the past few months, chances are good that you’ve been working out a lot to deal with stress, as stocks have dropped more than 44% from the 52-week highs thanks to concerns about the safety of the treadmill and a sale in growth. On the other hand, Peloton shorts probably enjoyed the decline and may have used their profits to buy a new exercise bike.

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Yoga is another great way to clear your mind and get fit out of the market, and you can’t go wrong when shopping for high quality sports clothing at Lululemon (NASDAQ: LULU) to make your sessions more comfortable. Dicks Sporting Goods (NYSE: DKS) is another retailer who should check to see if you are interested in high quality clothing and fitness equipment that will motivate you to relieve stress in healthy ways through exercise.

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Although Lululemon’s shares have suffered a lot in recent months, if it can recover the 200-day moving average, it may be worth taking a look at a fluctuating trade. Dicks Sporting Goods is one of the most intriguing names in the retail space, and stock has risen more than 51% in the year to date, as people started playing sports again after the pandemic. There is something really satisfying about working with clothes from these retail companies and then making gains from their inventories.

The end result is that the human element of trading can be the most damaging thing when we try to achieve our goals in the market. If you don’t learn to control your emotions, the market will swallow you whole. While managing our feelings while trading seems like a big 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 can offer another smart way to get the bad emotions out of the trade.

And if you could find an AI powered system that gives traders directly actionable insights that are data driven and not based on opinions or feelings? That way, you can start each day with a specific plan that you have confidence in, ensure that you abide by all its 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 previous price actions 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 accurate predictions about the direction of a trend 1 to 3 days in advance, you can totally avoid making emotional decisions and have the confidence to take your trading to the next level. See why more than 32,000 traders are already using this system to get emotions out of the equation with one free live training.

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Paula Fonseca