Fear and greed controlled by your edge

There are two things that may cause you to fail as a trader.

Too much fear and greed.

They are two sides of the same coin -- each can cripple your ability to make good trading decisions.

Fear of loss can keep you out of a good trade ... or cut it short. Greed can push you into bad trades ... or hinder your ability to control your risk. You must find a middle ground between these emotional extremes.

How do you keep emotion from controlling your trades?

You can't eliminate your emotions. In fact, recent research on trading has shown our emotions are important subconscious component we must better understand and harness as a trader.  But without getting to deep into that topic, I think its fair to say if you develop an objective framework it will help you exploit the emotional biases of other traders.

After 28 years trading in financial markets, I can say trusting an objective framework is the clearest path to success.

You want a system (an edge) that identifies high probability trades. And you want to pair that with disciplined risk management. Plus, you want to define appropriate exit points to pay yourself.  

Elliott Wave Theory is what has helped me best pinpoint trends and turning points. Those key levels dictate my trade decisions. What I might personally think about the euro, Japanese yen or the US dollar doesn't matter if Elliott Wave analysis says otherwise.

Result: Highly objective trading ideas based on an edge.