This is a good question and one I am sure many traders deal with. I have not read all replies here so maybe someone has already stated this... Reduce your trading size. In forex we can trade as little as one unit ($1.00) and on 50:1 margin it is exposing about .02 cents to trade of our own money. Build up from there. And if you again experience this fear cut back until you have nothing to lose yet are trading live. You should get over it. Cheers! to
Totally agree. Just did this on Friday when I was testing a stat-arb strategy that I have been working on. Did a bunch of tiny trades, and I mean TINY! With todays commissions (less than 1c per share) brokerage shouldn't be preventing you from trying your strategies in the "real world". This is the only way to get an idea of what will actually happen. And of course, as almost everyone has suggested, have your plan of action ready and use stops. It will not totally prepare you for the bigger positions, but at least you will know what to do. All the best.
And if you trade Forex, try your system on a demo, until you know for sure that it works. It gives you confidence.
Afraid to use the Holy Grail? Gimme, gimme, gimme the holy grail and I'll give you part of the profits. Just name the % !!! You are afraid and frozen and I am fearless and greedy! Solution: Tell somebody to click for you.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=14264 repetitio est mater studiorum John Wooden, considered one of the greatest coaches of all time at any sport once remarked, "The four laws of learning are explanation, demonstration, imitation and repetition. The goal is to create a correct habit that can be produced instinctively under great pressure. To make sure this goal was achieved, I created eight laws of learning-namely, explanation, demonstration, imitation, repetition, repetition, repetition, repetition, and repetition."
Now 80% doesn't mean edge by itself you can have 90% of probability to win 11000$ at roulette with a 10000$ bet still the edge is against you.
IMO, The fear you are experiencing is telling you something important. Here is how to tell if it is a "good" thing or not. If you have traded before and it seems like you could do nothing right, then the fear is warranted and you should listen to it. If you have traded before and it seemed like you could do nothing right, but you went back to the drawing board and now you really think you can give it a shot again, then take the rest of the advice most of these people are giving you. What I am trying to say is that feeling fear is a good thing when you are getting killed. Feeling fear for past failures that paralyzes you _forever_ is not good. nitro
You have to be able to pull the trigger and say screw it it's only money. There's a saying we use in the pool halls and poker rooms if you gonna sweat it then don't bet it. In other words if your to nervous to pull the trigger then sell your gun. Don't get me wrong it's good to be a little nervous because it keeps things exciting but if you are right 80% of the time that's like have the nuts "the upper hand" in anything that involves winning. It's like giving the superbowl champions 28 points and the opposing team's quarter back is out. It's like spotting Tiger Woods a 10 stoke lead. It's like getting a Royal Flush when the pot is maxed out. In other words you just got to do it. Listen to your head and your gut feeling's. Next time you get the nuts and you stock hits the number your looking for PULL THE TRIGGER Good Luck and let me know if I helped in anyway.