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How to overcome fear.

Discussion in 'Traders Coffee Shop' started by prafuldasariya, Sep 18, 2012.

  1. prafuldasariya

    prafuldasariya New Member

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    Hello sir
    Can you please write something on how to control fear during trading. The fear is if I face loss continuously in two trades I hesitate to enter in third trade. We can never be certain about our analysis, so can face loss continuously and that’s the fun of the market but when we skip the third trade because of fear, turns into a big success and its quiet frustrating as we have left it.
    So how to build a psychology to be in every possible trade irrespective of last result.
    Thank You.
     
    prafuldasariya, Sep 18, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Sure why not and here is what I follow.

    1. Aim for small gains and small losses and that can boost your confidence and then you can enter into trades with confidence. Big losses can make you pessimistic and big wins neither helps because you tend to be over confident.
    2. Trading with as technicals by your side would mean you will feel more confident. This does not mean you should be tracking more than 2 technicals at a time because if you do so, you may not see any opportunity anywhere
    3. Always have stop loss before the trade and make sure you calculate the exact amount you will loose if you hit that stop loss. Then make sure you are fine loosing that and if you arent, don't open the trade terminal.
     
    shabbir, Sep 18, 2012
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  3. prafuldasariya

    prafuldasariya New Member

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    o.k.fine and how many position should be open at a time if 2 or more opportunities appear simultineously and why?
     
    prafuldasariya, Sep 18, 2012
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  4. harshjoshi

    harshjoshi New Member

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    You can have many positions open at a time, but with a strict and trailing stoploss's so that you can't make big losses and can preserve you profits.

    Harsh
     
    Last edited: Sep 18, 2012
    harshjoshi, Sep 18, 2012
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  5. shabbir

    shabbir Administrator Staff Member

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    I never have more than one trading position and that is because I have too many other areas to focus. On top of that I just miss too many opportunities because of not being able to track things closely but then I consider them as part of life.

    So my answer would be to have that many open positions which you are comfortable tracking. The number of positions does not matter and what matters is how disciplinary you are trading and maintaining your stop loss. (Remember how good I speak in writing here, adrenal rush is always with me as well and so don't read too much into what I am writing. Mistakes always happen but learn from them.)
     
    shabbir, Sep 18, 2012
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