The emotional spectrum of the trader could be defined with a scale between absolutely conservative and shy – to the point of paralysis – and extremely aggressive and excessive. Neither extreme will allow a trader to be profitable in the medium term. This spectrum varies according to each person but curiously it also varies according to the day.
It is difficult for a trader to place himself at the same point on this spectrum day after day and for numerous consecutive sessions. There will be days when you will be tempted to open positions with the bare minimum of confirmation and days when it will be difficult to open even the most “book” trader and with less risk presented to him / her.
Balanced trader is not synonymous with a mechanical trader. The trader has to adjust to the market context every day and to his “himself” every day. It flows within the spectrum based on what the price dictates and its emotional charge. This is probably the most challenging and interesting at the same time that it offers this activity, no day will the market be the same or it will give a cloned movement of another but neither will any day be exactly the same trader who is trading it.
Each session sits a person in front of the screen with one more day of experience, and with a subtly different emotional predisposition than the day before. Of course, with the passage of time and the experience obtained, the emotional charge tends to balance, and the trader tends to balance within that mentioned spectrum.
Now, is the permanently balanced trader the best? Is the trader in the middle of this spectrum the most efficient? The answer is no, or rather we should redefine the idea of equilibrium not as an absolute but as a fluctuating point as a function of more variables. An outstanding trader will be the one who manages to develop the ability to swing the scale based on what best suits the daily market context of each instrument – even within the same session if necessary – and knows himself so well that he is able to reverse or at least curb your attitude when the market has proven you wrong.