How many of you are seriously worried right now that your beloved wife is going to kill you if you’re next trade doesn’t work out?
Visions of knives and bullets are going through your head while your sweaty palms grasp onto your mouse as you contemplate if you should click to buy or sell a stock. This scenario belongs in Billy Joel’s “Pressure” video.
This doesn’t sound like a nice relaxing Zen Trading
atmosphere. Nobody should ever trade like this. Professional traders vehemently talk about getting into the zone when trading. Blocking out all noise and distraction.
How can you possibly do this when your fearful that people around you will be disappointed if your next trade isn’t successful? This can lead to trader paralysis.
Many traders become paralyzed when fear surrounds their trades. Fear can cause traders to freeze up when instead they should be pulling the trigger. Or even worse fear can cause traders to chase a stock after it’s made its move.
Traders are so fearful of losing on the trade that they want to make sure it’s going to move in the direction first before they pull the trigger. Confirmation after the fact. This is the buy at the top, sell at the bottom syndrome.
Another symptom of fear that can plague traders is denial
. Many traders will go into denial refusing to exit an unsuccessful trade. They have the “If I don’t get out, it’s not a loss yet” syndrome
. How many of you have suffered from this? Recently I had a trader tell me that he hasn’t had one losing trade this year.
I was very impressed until he told me that all his trades are against him in his account, but he is still positive because he hasn’t exited these trades yet. This reminds me of the recent health care bill being pulled. Instead of taking the loss on the vote, it was pulled. This way nobody loses.
If you fall into this category, stop trading! You are just gambling, guessing, hoping, and praying. You are out of control. That isn’t what trading is all about. How much training have you had in this field? Just because you’ve been successful in your other career doesn’t qualify you to be a professional trader.
You need to approach trading the same way. You need to get a master in it. You need to invest in yourself before you click that button to enter a trade. Education is the most important factor to becoming a successful trader. How many of you can honestly say you’ve paper traded for two or four years before you took your first trade?
That’s how long it should take you to get a degree in trading. I’m going to take a guess and say nobody reading this article has done that.
If I’m wrong, please email me firstname.lastname@example.org
and let me know that you have. You’re the type of trader that I would love to work with. You respect your money and you are approaching trading as a career not a hobby.
Let’s go back to your wife for a moment with the gun in her hand. She’s right by the way. She has every right to kill you if you lose all your money. You’ve worked very hard for your money and she doesn’t want you to gamble it all away. She has wonderful visions of that all around the world cruise she wants to take with you.
Instead, she finds you with a mouse in your hand clicking away losing all your retirement money. I’m sure she’ wouldn’t mind if you invested in yourself. I’m sure she wouldn’t mind if you bought a few educational trading workshops or joined a trading room to learn more.
I’m sure she wouldn’t mind if you practiced for a year before you started trading with real money. I’m sure she wouldn’t mind if she sat next to you while you learned. I’m sure she wouldn’t mind if she learned how to trade too. The question is, would you mind?
Until next time,