Afraid of getting in....please comment

hey guys, thanks for all the comments, I read an article here last night called "mastering the 4 fears" and right off the bat is the fear of losing money.

Today I went into the trading room, believed in my trading plan, gotten into more trades (actually, I traded more shares than ever today) got into the market more, and I am starting to feel better, a little more comfortable. Just setting goals and taking it one step at a time.

I'm definitely interested in reading "Trading In the Zone", infact, it has been recommended to me already...if anyone has an ebook of it, please be so kind to forward the link here.

I realised that there are no perfect setups, but some are better than others, when you believe and know your trading plan, and when the better setups present itself, it's time to trade- no hesitation, simple as that...

Yes, I definitely have to take more risk or at least be more risk-tolerant.

 

Nah I don't think thats it exactly. You do not have to take on more risk. You have to learn to accept losses. Losses are good, they happen daily and as long as you keep them small, learn from them and take them objectively, things will eventually start coming together.

Monetary risk should be a function of the strategy you are attempting to trade. It should not be based on your psychological risk tolerance (until you gain more experience, that attitude will get you into a dangerous mind game where you question your stop parameters and adjust "on the fly" - this can lead to very self-destructive behaviors over time).

 

there are only 2 reasons. you can't afford to lose the money and you don't have a plan.

 

You say you have a plan, but the content of your posts suggest that you don't, or at least that you haven't tested it (if you had, you'd know exactly how much risk you can expect to assume).

If you fear loss, you have no plan. If you have what you think is a plan, you haven't tested it. If you think you've tested it and you still fear loss, test it further.

 

hey guys, thanks for the comments, I've began to understand that you have to risk money to make money, and it's all part of the game, all part of trading, and I'm starting to feel a little more comfortable trade by trade. I have a lot to learn and somethings you can't learn by reading but by in the market, by making a trade.

In terms of my plan, things are coming together and I am getting reassurance one trade at a time. I know my plan works, make a trade when the opportunity is there and don't look back.

In the end though, I have to be more risk tolerant, take more risk. When I say risk I don't just out of the blue trades, I mean when it's there, go for it because I believe in my plan.

 

I disagree with this. People are not flawless..there will always be some amount of fear or greed..happiness, sadness in every trade.

in fact FEAR is what keeps me disiplined. Its what makes me take the time to plan trades correctly. You have to have some humility in this business. Too much pride is just as bad. Admit when you're wrong and move on.

- nathan

 

good points nathan

 

Admiting when your wrong and moving on is a must, but being afraid to get into a trade because you might lose money is not. They are two different factors. You are right people are not flawless, but I think it is possible to almost be like a robot trading. I trade with a guy who makes more money in a day then most people will make in 5 years and you can't tell if he's making money of losing it on that given trade. Once you get to that point of having no fear and no emotion, the sky is the limit.

 

How long did it take him to get to that level of emotionally detached trading?

 

I'd agree with that. FastandFurious, dont wait for the perfect setup, it will never come until AFTER you see it on the chart. Because we cant predict the future of price no matter how good we are, there is always a "X" percentage of uncertainty. You just gotta, like I say, "add it all up". If you use indicators, do most of them agree with you in the trade you're about to take?..Where is S/R in relationship to the trend (or lack thereof)?.. so on and so on.

For me, each trade is like a pre-flight check list. I got:

1. A profit target in mind as well as a stop
2. How strong is ADX in the trend?..if above 30, positive, below..negative
3. Is the CCI overbought or oversold
4. Is the stock near a potential s/r level?
5. Is volume rising, falling, or staying the same?
6. etc...

You may use different indicators, or none at all. I think that if you really think through a trade, it will give you more confidence in pulling the trigger.

- nathan