Separating Emotions and Decisions: The Ability to Be Self‐Aware

To manage anxiety and fear while dealing with the uncertainty of the market, one must become comfortable with uncomfortable feelings. One has to notice and separate his or her emotional responses from the decisions that one is making. When a trader reacts to his emotions, he often tricks himself into believing false notions about himself and his abilities—either overvaluing his abilities or undervaluing his potential. A trader, who is able to observe his own emotions, without reacting to them, has to have both self‐discipline and good self‐esteem. The ability to self‐assess after periods of drawdown demonstrates great self‐awareness, lack of defensiveness, and willingness to change and to listen to coaching recommendations—all signs of someone with the capacity to adapt and win.