My friend has been position trading stocks last few years. So he is not new to trading. Recently he developed a system and is paper trading few months and happy with the results. Now he funded his day trading account and ready to use his system. But he told me he is afraid of pulling the trigger. He is getting the signals from his system but unable to place any order. He knows his system will work for some trades and not 100%. So he is afraid if his first few trades may be loosing ones and unable to place trades. Any suggestion what might help to get him going. Thanks for any replies.
I hate to break this to you, but trigger shyness is the absolute worst flaw a trader can possibly have. I've known dozens of traders with this career-destroying trait, and not a single one of them was ever able to progress beyond small time grinder status. If 'your friend' wants to have a chance at making anything more than a very modest income from trading, he'll have to either lose his fears & inhibitions by overcoming a terrifying near-death experience... or more realistically, by going into the business of designing systems for others to trade. If the system is truly rock-solid, and if you happen to be familiar enough with me & my posts to know that I'm not the type to screw anyone over, feel free to PM me to discuss some type of deal where I'd pay a percentage of my gains, if I choose to use this system.
Spot on. My weakness lies in taking on too much risk (not ridiculously so) which has translated into some pretty substantial % results for the past few years. Granted, I understand the downside however, taking $50K to $500K or more just cannot be done being trigger shy.
Yellow Pages: hypnotist (psychologist), phone interview to find those who work with traders etc, 3 - 6 ? sessions $100 - $200/hr
The consequences are as follows depending on what type of trader you are: A) If your a good trader then most likely your losing money B) If your not a good trader them most likely you saved yourself some money
Trade with him. I have a friend who use to have a VERY similar problem. I found by trading his calls together he overcame the fear. As long as the conviction is there, this will help.
Great post. Tell your friend to put as much time into the risk management part of the trading model as he has in the entry/exit aspect of it. Tell to him to develop conservative / moderate / aggressive portfolio options, and to start at the low end and build-up, or run seperate portfolios based on the different categories.