Registered: Jul 2008
04-24-12 01:37 AM
Quote from kut2k2:
Fear is a consequence of uncertainty. Uncertainty is the result of not trusting your trading system. Not trusting your trading system is the result of not having adequately proven your trading system through extensive backtesting. Not having adequately proven your trading system though extensive backtesting is the result of laziness or an emotional rush to trade without full preparation. Stop being lazy or rushing to trade without full preparation. The fear will go away.
if I can add to that ... markets are inherently uncertain, as a result you cannot predict the outcome of the current trade - never. Once you are 100% convinced of this, the next step is to understand that if you have an edge (a trading method with a positive expectancy), and money management rules going with it (that is, your per-trade $$$ at risk is small enough that your risk of ruin - the risk of blowing your account in a "normal" drawdown - remains small), by taking a "large enough" number of trades you'll end-up making money - and this is really what counts, making money over the long-haul, and *not* the outcome the current trade (or of the last few trades).