Experiencing fear is normal in trading. In fact, fear is considered as a basic survival mechanism. Without fear, we won't be able to recognize danger and respond appropriately. Fear warns you that something doesn't feel right about a trade, you should try to figure out what exactly is going wrong
Fear may force us to make a decision that goes against good trading habits. It may make us violate our trading plan. We probably go through one of the following at least once every trading session
- We fear our winners will turn into losers and exit, missing bigger profits
- We fear losing money and hold on to losing trades longer, losing more money
- We fear to lose and skip valid trades.
- We fear missing trades and over trade.
- We fear the unknown, we fear the uncertainty.of trading.
No matter how much better we become, we will never stop feeling afraid. No matter how much more experience we get, we will never stop feeling afraid. Trading psychologists may not agree. They will swear and promise us to take our trading psychology beyond fear and help us achieve peak performance. Let them. It is their bread and butter.
There is no other way but to accept fear as a constant companion. The only thing I can tell you is that while the fear never goes away, the more you work through it the easier it becomes to handle.