Survival Instincts in Trading

This question was sent to me from one of our students: "Hey Joe! Would you agree with the following statement? “Of paramount importance to the trader, though, is fear. I am convinced that it is absolutely necessary to 'run scared.' Only an exaggerated emotion can generate the concentration necessary to survive as a trader.”

I agree, but not necessarily for all traders. Some traders are pretty laid-back and relaxed when they trade.

In general, trading is a stressful business. In many areas of activity we see constant demonstrations of performing under stress. Actors of stage and screen; sports figures; cold-call sales people… It is the ability to thrive under stress that sets the best in their fields apart from the other participants.

An effective trader handles stress on a survival basis. His natural instinct of self-preservation emerges whenever he is in a stressful situation. His behavior is reduced to pure selfishness and self-survival. He fights for what is his or what he wants to be his in the in a most greedy way. He flees from danger in a most cowardly way.

There is no thought about pride or style or personal grace or honor or bravery. Survive somehow. Win somehow is his only purpose.

As a trader, you must get in touch with your baser instincts and learn to accept yourself in that way.

 

Good greif, your THE Joe Ross, of vast educating fame?
I mentioned, what i thought was a ross hook in another thread here, i guess you claimed the formation before anyone else or something.

 

The Ross Hook has always existed. But I was the first to give it a name and an indication of what it means and a way to trade it.

JR

 

Things could of been worse. It could of been called the Bollinger Hook...