This piece is from www.sfomag.com and is written by Daniel M. Gramza... I found it a pretty interesting read... Part-one of a two-part series. This article is an excerpt from Gramzaâs yet to be published book, Trading in the Eye of the Storm... Fear: A Trader's Thought Demons â #1 in a series by: Daniel M. Gramza The business of trading can be fertile ground for negative thought choices. If you let them, these negative thought choices can become your demons and sap your positive mental energy. By identifying and understanding the realities of these thought demons, a trader is better able to redirect energy away from them and diffuse their power. The most common thought choice demon for traders is fear. Traders encounter opportunities for fear on a regular basis. If allowed, fear will confuse and emotionally paralyze a trader. A fear can feel overwhelming and difficult to handle when it is being consciously or unconsciously experienced. Fear can create the envelope of our reality because it can determine what we do and avoid doing so as not to experience the fear. Fear is a reaction to a memory of a past experience, which leaves the thought, âI will never do that again.â It can also be the anticipation of an unknown, future event, or a âpossibleâ future outcome. It can range from apprehension to dread. The intensity level of a fear is directly proportional to the amount of energy we choose to feed it. Thought choices that support fear provide a great example of how we create our reality and what we experience. For example, a trader sees a wonderful trading opportunity but is frozen in fear and does not take it. His fear could be a memory of a past trade that didnât work, or as protection against a âpossibleâ losing trade and what he perceives will result in emotional pain if the trade does not work. However, what the trader doesnât realize is that when he was frozen in fear, he was experiencing exactly what he was fearful of â emotional pain at that present moment in time. He was experiencing his fear in the present, not in his anticipated future. His fear was emotional pain, and he is experiencing, consciously or unconsciously, this pain at the moment he was frozen in fear and unable to make the trade. It is important when sensing fear, to pay attention to breathing. Often, when a person experiences fear he tends to hold his breath or to breathe in short and inefficient shallow gasps of breath. Both of these breathing approaches will increase intensity and heighten his fear and anxiety. Taking slow deep breaths is very important in assisting the trader to control his fear reaction. The deep breathing will allow more oxygen to circulate to the brain and will help the trader stay focused. Letâs examine and de-energize some of the most common trader fears: Losing Money If a trader chooses to be afraid of losing money, there are two things he should consider: Any time money is used to make money, there is a level of associated risk. The intent of a trading business is to have money make money. Therefore, there is an associated risk of losing money in trading. If the idea of losing money is very uncomfortable for the trader, he should examine this fear. If the trader cannot get beyond this fear, the conclusion may be that he should not be trading. In any business, not every business decision will make money. This is also true in the trading business. There is a high level of certainty that no matter what trading techniques are used, not every trading business decision will make money. Therefore, by the very nature of the trading business, a trader will have losses. Keep in mind that it is not the profit or loss from one trade that determines the success of a trading business. Rather, it is the total trading profit from a series of trades. Because not every trading decision will make money, the key is having appropriate risk management parameters that do not overexpose trading capital to any one trade. Since the trader never knows with absolute certainty which trades will be profitable, only trades that completely comply with every aspect of the traderâs strategy should be entered. In this way, every trade has an equal chance of being successful.