How to Counter Your Fear In Trading

The author - Lawrence

The FEAR that i encounter during the trade
- I fear that my winning trade will become a losing trade
- I fear that my losing trade will not be able to become winning trade

During Off-trading
- I fear that the market will turn against me
- I fear that i wont be able to make it back home on the opening of market.

The Measure that I take to COUNTER the FEAR
- Stick to my plan and stategy
- Have my Target profit and Stop lost
- Practice and practice
- Look at the indicators
- Automate it

Conrad

I fear my own Powers of Attraction!

So I am not going to read this post again before I start trading!

Seriously, my deepest but not the only fear is that my pride could be ruling my head without me realizing it until its too late. Its not easy being a coach and admitting you've made a mistake. So pride tends to rule in situations like those.

My solution is simple:
Cut Loss. Even if its too late, just cut loss. And then tell everyone that you were an idiot.

Jack

My fear is having too many winning trades in a row, making me think that I am in the fantasy land.

My fear is that I am able to guess where the market goes correctly.

My fear is that I am able to say to myself I am never wrong.

So, the catch is to stick to my own trading systems, and automate the trades. This is what Tom Gentile says:

1. When you are still looking for the trade, the computer is your employee and you are the boss.
2. But when you are in the trade, the roles reverse. The computer is your boss and you have to be the employee to listen to the computer. Let the trade do what it is supposed to do.

Zand

Well my fear is simply Pride !!!
Staying Humble is a challenge, and I work very hard to stay that way.

Jmot

My earlier fears stems from my trading account. My heart sinks when I know that my trading account is going deeper and deeper into the reds. I used to always look at my trading account as a gauge of my trading performance. I realized that my emotions are tied to my trading account to the extent that it has also influenced my trading decisions and judgment.

Something which I consciously try to avoid doing now. I try to focus on the quality of my trades and try to improve them instead of how they will affect my trading account.

Someone out there share the same experience?

Benard

My fears:

1. Holding on to a position and some trashy news or major unexpected world event happens that causes the market to tank, and I do not have the stop loss in place to take money off the table. The market takes all my profits away.

2. Holding on to a losing position and sweating while it continues to either tank or move sideways.

3. Reporting to my son that I stubbornly held on to a losing trade instead of trading my plan, aka, behaving like an idiot!

My learnings to far:

1. Easy to read and talk about cut loss. Emotionally hard to do as we all want to win. Having done some major cut loss, its now easier. I guess practice makes perfect. If a trade/scalp is not going my way, I will cut loss without hesitation. Yes, it may reverse and go my way later after I cut loss. No matter because it could also go the other way! I'm learning to trade my plan. Easy to read about, talk about, very hard to do.

2. I'm working out my stop loss positions to be activated for my value stocks as well in case I don't have time to react to market conditions

3. Trade with the trend. If trend reverses against me, I cut loss. Hard to fight the trend, and harder to keep hoping day after day that tomorrow will be better.

4. After cutting loss on a losing position, I feel better, mind feels at ease, feel calmer and can think better. Easy to talk about, hard to do.

Thoughts

These are a few guys that have share their experience in trading. I hope that You will be benefit from these sharing. To know more about the psychology of trading, you can feel free to visit the trading forums - http://www.patterntrader.proboards106.com/ , or visit my mentor blog conrad - http://www.conradalvinlim.com/

I hope that there will be more people sharing their thoughts and opinons. Thank you very much for visiting my newly born blog. Have a nice day trading =)