Do you still get fear in a trade?
- Thread starter cashclay
- Start date
You have a long way to go, padawan, if this is still a question in your mind.
You are welcome.
sorry to say but your mind has been contaminated.
for trading, the mind has to be centered.
and emotion should be neutral, not negative.
fear is necessary/useful when you face danger, and you must respond to it fast.
I havent trading for a long time . However when I get into trades I have the underlying fear inside of me that it wont go my way . And it seems that fear sometimes manifests itself into the outcome of the trade lol. Actually not sometimes but alot .
I am wondering how to get rid of this .
I am wondering how to get rid of this .
I am not sure either is an asset or a drag. Its about good decision making and you have to live with the variance.
I have seen guys on this board get into huge positions only to cut it at monster losses because it was the best decision at that time. Or hit the gas even when an onlooker would think the edge is gone. Newer traders might blame their emotions for good/bad decisions.
A good trader can step back and figure out whats the best spot to be in and get into it. I have not met a good trader who said their emotional state was a source of their edge
Risk aversion (fear) is bad for PnL if you are trying to maximize your dollar growth. Moving outside my comfort zone has been a huge driver of PnL. If you can find find +EV bets, you need to size appropriately. That being said if you can find and monetize a trade idea you are probably already williing to move outside your comfort zone and may just need a little push from a senior.
For a descretionary trader, Fear and confidence are signaling factors if you understand them.
it’s okay to be scared in a trade as it tells you you are thinking through the scenarios (as no brainer trades are like unicorns). It also can be bad because it tells you that there is a very toxic element to your position.
same with confidence.
if you can step outside yourself and understand why your emotions are what they are, you have a very strong trading signal.
it’s okay to be scared in a trade as it tells you you are thinking through the scenarios (as no brainer trades are like unicorns). It also can be bad because it tells you that there is a very toxic element to your position.
same with confidence.
if you can step outside yourself and understand why your emotions are what they are, you have a very strong trading signal.
I agree. I think it comes down to who you are as a person. Some people fear to run out of toilet paper.
Depends on your approach. If I trust my company and my position, no I don't fear. If I am long at all time highs(Like a rocket shape graph) on a manual photo camera making company, shares floating at 2 million and the paper ran from 25$ to 250$ in 3 days and I opened a position at 251$ at market close on wednesday evening, the next day is holiday and markets are closed until monday. I would probably grey out my hair that weekend and sit like a puppy on the corner while people celebrating new year or whatever.