Three Ways to Reduce the Impact of Emotion When Trading

I have always suggested and firmly believe that learning how to become a consistently profitable market speculator is not that difficult – at least the logic, rules and strategy aren't. The challenge comes in when you actually attempt to execute a consistently profitable strategy.
The main reason for this challenge is the fact that we are humans with human emotions. From birth, we run from things that we are fearful of and gravitate toward things that make us feel good. If you take this natural action in trading, you are in for big trouble.
The consistently profitable trader buys after price has declined and just after the majority has sold (red candles), at price support (demand). Buying when everyone else has just sold is not a comfortable thing to do.
When shorting properly, you have to get excited to sell after the majority has bought and after a big rally in price, this will challenge every emotional "bone" in your body. Here are three ways to help minimize the emotional obstacles to consistently profitable trading.

Change the Candle Color

Most people use red and green candles, which makes for a colorful chart but may not always be the best choice for real trading. If you are selling short after a rally in price and into an objective resistance (supply) level (a high-probability shorting opportunity), you are likely getting ready to sell short right after a bunch of big green candles form. Selling short after a series of big green candles does not feel comfortable because it creates the strong illusion that price is going to keep going higher.
For a strong rally up into the pre-determined supply level (where a low-risk, high-reward, high-probability shorting opportunity is), for example, I would change the color of the candles to black to take out some of the emotional challenge of shorting at the supply (resistance) level.
Leaving the candles green and red would induce us to look to sell short after a series of green candles, which can be scary for the new trader. Changing the color of the candles is not a bad idea if you are new to trading and focus on candle color too much. Always remember: The color of the candles is not nearly as important as their location.

Set It and Forget It

The simple task of pushing the buy and sell buttons can be an emotional challenge in and of itself because many traders simply can't get over the fear of being wrong. The good news is that you no longer have to push the buttons when you enter and exit positions. This is a huge benefit new traders have that was really not available just a few years ago. We call this "set and forget" trading, and the way it's done is through "bracket orders".
Take, for example an initial long entry to buy, with a buy order attached to a protective sell stop order to manage the risk and a sell limit order for profit-taking (what's called a "3-sided order" in the trading world).
Once you know where your support (demand) level, protective stop price and target for profit are and you have decided that you wish to take this trading opportunity, you can use this 3-sided order to be really "hands-off" for the trade.
You can (and should) walk away from your computer, and the entire trade will play out without you. This is a fantastic way to reduce the emotional challenges of trading and create more free time for yourself.

Focus on Risk

Most people find two facts about trading uncomfortable: First, there is no certainty, and, second, you will experience losses. The key is to understand that the best traders are the ones who know how to lose properly, keeping the size of losses (not necessarily the frequency) to a minimum.
Let's look back at my first "for example" above. When price was approaching the supply level for that short entry, two different thoughts could have been running through your head, and it is those two thoughts that determine whether you are going to be successful or not.
The novice thought is to worry about price not turning lower and the dreadful outcome of being wrong. However, the consistently profitable trader is actually very excited because he or she knows that the trading opportunity is very low risk (because you are entering your position as close to your protective buy stop as possible).
Make sure you always adjust your position size to a level that you're more than comfortable with, and when it's time for entry, instead of watching the chart and fearing a potential loss, focus on how low risk the opportunity is.