I have been trading for 2 years now. I risked everything to pursue my dream. The market is completely random and unpredictable but because I know I have a trading strategy that puts the odds in my favor over time I will be profitable the more I trade, the more experience I gain and the more carefree my mind becomes.
Being hard on myself might not be so beneficial after all. At this point, I must be comfortable with losing money and being wrong. If I lose because of a trading error this is my fault, I can learn from it and fix this. If I lose money because the market didn’t go as I intended because it is an uncontrollable machine then I can live with this.
The 4 fears of trading are being wrong, losing money, missing out and leaving money on the table. These fears combined are the reasons why we don’t stop out where we say we should, we don’t predetermine our risk before a trade, we don’t hold our gains long enough, we panic sell, we chase, we gamble, we hold on to our losses and ultimately the reasons why we lose money in trading. I have been struggling with letting my profits run. I have yet to figure out why I emotionally and psychologically am unable to let my gains go higher and higher. I tend to take profits too early without ever seeing the reversal, breakdown or exit signals fully form. I must focus on this area of weakness.
Fears both in trading and life are meant for us to overcome. Fears come from uncertainty. The market is completely risky and uncertain. So how do we overcome this? It comes from within us the ultimate place of certainty. Think about it for a moment, the greats of our time at one point in their lives made an intuitive and subconscious decision to be in control of their destiny no matter what challenges they face. And from that moment on they said to themselves, “I will let nothing not even myself get in the way of achieving greatness.” This is the mindset of fearlessness.
“You must do the thing you think you can not do.” – Eleanor Roosevelt.