Emotions become problems in trading when they follow from our ego involvement in decisions. If we're making a market call and looking for self-validation by anticipating a market move, then it will be particularly frustrating if and when that move doesn't materialize. We no longer feel validated. If a trading decision is the result of listening and isn't about us, being wrong doesn't feel like being stupid. Being wrong becomes information. It tells us we have to listen harder, listen differently.

Imagine if I were to come into a session with a client with a clear conviction about what we needed to talk about that day. Chances are good I'd miss what that other person had to say and might even create a frustration for them. It's no different with markets. Once it becomes about me, I can justify ignoring the messages of markets simply by calling myself a contrarian or a "mean-reversion" trader. Very often, ego-involvement is the source of trading without emotional intelligence.