+1 which of the four conclusions on the road conditions is the e.g. of best money management or was there some other purpose for listing them?
the last where i no longer take that road(i.e.the non layups) if all you have today is one setup,then that is all you should trade,while learning on paper the other setups,when you can successfully spot and profit from a 2nd setup, then trade it,but the patience to not trade the non setups,,money management is a much bigger part of trading than is mentioned,a quick $500 winner makes trrading seem easy,and if you only trade those it is,but the biggest part of building the acct is to not give it back with those non setups,trading is gambling and a good gambler knows when to sit tight,the vacationers in vegas go there and willingly blow there allotted gambling monies,which would you rather be , the local picking them off or the guy on vakay,the guy who walks around the hole and eventually avoids the road altogether,the local collecting started out paying
To overcome fear you should trade in low lots . You will get little profits in trading if you loose your loss will not effect badly to your capital. It will develop confidence to face market . You will then know how to manage trades with risk you are taking on any position.
we all start out losing,then we learn not to trade then we learn to trade only setups,then we discipline to never trade anything but,then fear of losing only comes with bad setups and then we keep relearning not to take them,then we learn that fear is stronger in bad setups and not as strong in good setups,then we curtail the fear by siting and waiting,its a process,like fear of falling when we first learn to walk,we do pushups,to strengthen upper body then rock to strengthen lower body,then try to stand and fall,then more pushups,more rocking,more standing,legs feel better ,a few steps then fall,eventyually wa;k while holding couch or chair ,coffe table ,eventually walk when the legs ,arms ,n balance are all a good setup,process repeats itself in every new endeavor
fear comes from bad experience. if you lost in a setup or a trading idea, next time, when you see the setup or occurs to you the idea: you will hesitate, that means fear come into your mind. "maybe this setup is trap", "maybe this idea is rotten".... nothing good will generate. the only way and best way to conquer it is do it. I once dump more money to my account to make me feel I am a deeppocket, that works a while, but after a while, this feeling is gone and replaced the old feeling again. it is against the purpose of trading: withdraw money from the market. I have bad experience about overnight position, so Ieasily end up my good profitable swing trades as day trade! I was buying NG at 3.53~3.55, but the sudden drop to my buy level makes me feel I should dump at 3.6, but my target is 3.655. too bad. we human beings. we learn, we associate, we generalize... sometimes we learn make us dumb or stupid more, not smarter. people said fool never learns. but in trading,I wish I am a fool.
We can get out of the fear of trading when we have gained knowledge this is possible if the traders are determined.