Emotional control is important for both sides of trading. It's been said and written about plenty of times, that keeping your emotions in check when taking a loss is vital. In fact, it's becoming a monotonous subject in trading literature and educational material worldwide.

But how do you respond emotionally when you have a win? How do you respond emotionally if you have a winning streak, or even better, how do you react? Do you react? How about a big win? I don't mean one of those home runs that a lot of novices chase after, thinking it will answer all their prayers. I mean the sort of trade that comes once in a while and affords you the ability to take more losses than winners. How do you respond to these?

I was at a friend's house not so long ago and he happened to have a live trade on at the time. As I was there on another matter, I was surprised he even had his computer on, but it was his soon to be apparent behaviour that concerned me. Apart from having one eye on me, and the other on his computer screen, he was egging on the stock as if it was a horse! And low and behold, as soon as the stock reached a certain level he had obviously pre-determined, he thrust up his fist in the air and howled 'Wahoo' like Homer Simpson!

In my mind, I instantly drew a parallel between a trader and a corner store/deli owner (depending on what part of the world you're from). I imagined the deli owner sitting behind the counter, waiting patiently for a customer to walk in, continuously looking at the clock. Finally, someone walks in, the owner starts to become nervous and fidgety and even starts to pace. Then the customer looks to the fridge and contemplates their purchase, which then causes the owner's palms to become sweaty in anticipation. Finally after choosing to purchase a bottle of milk, the customer pays their money, walks out, and as if a big pressure valve had just been released, the deli owner jumps up and down and lets out an almighty Wahoo!

Now what a silly imagination I have, but can you see the resemblance? I don't think enough traders are treating their trading seriously enough, and my friend was no exception. You'd never see a deli owner act this way, and I can guarantee you, you'd never see a seasoned trader act this way either.

Emotional control means having a place for your emotions, and in the heat of battle, there's no place for them, whether you're in front or not. But that doesn't mean you can't use them. The best places to let your emotions out after a good win, day, month, year etc, is when you enjoy the fruits of you labour. If you set daily, weekly, monthly or other goals, you should also set rewards, and it's when you are enjoying the rewards that you let rip, if that is your way....