Yes, psychology has a high effect on the trading decision, but with long time experience, the fear not anymore become the problem, it just needs to adapt wth new thing for a newbie.
%% FEAR of doing something stupid could help; confidence NEVER blew up an account. Trading to big or trying to do something the market will not give you\ could grind an account down to zeroLOL. UNease or nerveousness [mild form of fear] could help a bit; but with markets open from 8;30-3:00 CST , get in or get out according to your plan..............................................................Like one lady said, i never fear running out of toilet paper/could use leaves.My banker dad noted they used to use SEARS catalog for that.
Everyone loses at times, and even the absolute best have drawdowns. It's not the loss that matters so much, as long as you don't lose too much or too long, it's how well you rebound from losses that defines whether you are an elite trader or not. If a trader treats their trading career the same as an elite athlete treats their career than you will truly become a master. Professional trading is a lifestyle not an action. 1) Just like an athlete, you need to constantly hone and improve your skills. 2) You need to solidify your strengths 3) You need to spend more time on overcoming your weak areas and turn them into strengths 4) You need to constantly work on your mental game 5) You need good nutrition and good sleep 6) You need to take time off to rest and recoup 7) You need a solid game plan 8) You need to mentally prepare before each trading session, just like an athlete mentally prepares before a game/match etc.
The definition of bravery is to face fear and overcome it. A great trading psychology book I just read and highly recommend ("The Mental Game of Trading" by Jared Tendler") said it succinctly . . . "It's a myth that emotions such as anger, greed, and fear are the problems causing your trading errors. Rather, these emotions are actually signals". He goes on to explain that they are signals of the real underlying problems to your trading errors and then shows you how to dig deeper yourself and to come up with a plan to overcome those weaknesses. Take fear for example. Fear of what? Fear of loss? Yes, that is the most primal fear of any living thing and our DNA has deeply programmed us for fear of loss in order to try and avoid it at all costs. This is where "Trading In The Zone" by Mark Douglas fails absolutely miserably. Hate to let the cat out of the bag for people, but trying to insert logic when you are having a melt down will absolutely be a waste of time. Once an emotion gets passed a certain point it is too late to try and inject logic, because your brain will have already shut down all logical thought and you are only running on emotions at that point. So the trick is to dig deeper into that fear and work on it until the fear disappears. But you need to do this outside of your emotions being triggered during trading. You also need to dig deeper and learn the signs of that fear so you can recognize it is popping up and stop it BEFORE it overrides your logical part of your brain. It's a technique that takes time to learn, and takes time to rout out the deep lying issues. But the cool thing is that once you learn it you can use it on anything and do it yourself.
%% Good ; REALLY, NO such thing as business without expences [losses] as you noted .Expences sound so much better than loss ; same thing really....................................................................And thats good sense fearing a big loss\ if that's overruled =too easy to blow up. Years + decades help.
Fear may be as human nature, but all be back to us, behind the fear there are a brave, if in trading the fear dominated, the brave will losing strenght if the brave dominated, the fear losing strength
%% IN that case\ fear is a good thing because'' it wont go my way,a lot.''[EDIT; good if you make some needed changes.......] MOST of us were not smart enough to learn to trade/invest with one share. As the years go by it tends to get better/more profitable..........................
Fear comes from being unsure of your trading plan. Also, fear appears if you trade not with your own money, but with those received on credit. If you have worked out your trading strategy well, described it very accurately and, according to statistics, received a larger number of profitable trades, the fear will almost disappear. Because trading is automatic.
Feeling frightened and unsure is completely normal and it is soemthing that any trader ends up feeling even experienced traders. Obviously over time you can manage to control your fears a bit better. I believe that some fear can actually help you a bit as it keeps you more focused on whether you are going to do a good move or not.