How to deal with the fear of getting into positions

Discussion in 'Psychology' started by sbn, Jan 24, 2006.

  1. sbn


    How does one deal with the fear of getting into positions. When you know they are going to break in your favour? Or have developed a good feel?
  2. What fear? You are either right, based on market confirmation, or wrong. Take the appropriate action and then move on to the next opportunity.
  3. ozzy


    Fear usually kicks in if your trading size far larger than what you should be. Try trading smaller you'll see the fear disappear.
  4. Fear is a by product of not having an edge.. Find an edge, and you are never to fear again.
  5. Imagine the minute you enter a position that it immediately hits its maximum loss. If that makes you sick to your stomach and upset and completely uncomfortable, then the position is beyond your risk tolerance.

    If you imagine it and reassure yourself that it is only a small % of your account or that you can stick with your trading plan and easily overcome that one loss then you are trading within your limits AND with a good trade management plan.
  6. You force yourself to put the trade on, you do this again and again until you have broken your fear. Start small, the smallest size you can trade, and move up from there. Know where you are going to get out if things go wrong, know what your risk is.


    I don't think one should be trading if fear is the emotion they're feeling. It's one think to have a little anxiety but outright fear suggests that something else (such as a system, whether mechanical, intuitive or other, that is a crapshoot). I try to only enter a trade when I feel that the probability of a positive outcome is in my favor.
  8. How to deal with the fear of getting into positions
    You don't.
    This fear is the only thing that preserves you from ruin.
    You don't need psycho-help to solve your problem. You only need (lots?) more work before you will be ready to put on a position.
  9. Yeah, fear is good for u, but learn to calculate and accept the risk u are taking before entering your trades and be prepared before hand to suffer a loss and to deal with it: no matter how small your position is, when u are wrong u always suffer some kind of psychological damage and accepting to lose ahead of time alleviate the weight somewhat. In two words: eliminate expectations.
  10. tomcole


    i thought this was about sexual stuff. sorry.
    #10     Jan 24, 2006