How do you deal with the fear of pulling the trigger?

Baruch · May 8, 2004

Quote from keyser:

I tested my system, it works. I find good set-ups and set targets that are reached 80% of the time!!! But I have a hard time entering a trade at the time when it sets up right. I am afraid it won't work and most of the time it does work. Anybody having the same issues and knows how to deal with this?

Thank you.

Use a tight stop. And say to yourself: "If I'm wrong, I'm only getting a small loss. And so what?"

TradeOff · May 8, 2004

Quote from keyser:

I tested my system, it works. I find good set-ups and set targets that are reached 80% of the time!!! But I have a hard time entering a trade at the time when it sets up right. I am afraid it won't work and most of the time it does work. Anybody having the same issues and knows how to deal with this?

Thank you.

This is a good question and one I am sure many traders deal with. I have not read all replies here so maybe someone has already stated this...

Reduce your trading size. In forex we can trade as little as one unit ($1.00) and on 50:1 margin it is exposing about .02 cents to trade of our own money.

Build up from there.

And if you again experience this fear cut back until you have nothing to lose yet are trading live.

You should get over it.

Cheers!

to

spongebob · May 8, 2004

Quote from Sanjuro:

Use a small size and follow your system until you're comfortable raising the size.

Totally agree. Just did this on Friday when I was testing a stat-arb strategy that I have been working on. Did a bunch of tiny trades, and I mean TINY! With todays commissions (less than 1c per share) brokerage shouldn't be preventing you from trying your strategies in the "real world".

This is the only way to get an idea of what will actually happen.

And of course, as almost everyone has suggested, have your plan of action ready and use stops.

It will not totally prepare you for the bigger positions, but at least you will know what to do.

All the best.

Baruch · May 8, 2004

Quote from Baruch:

Use a tight stop. And say to yourself: "If I'm wrong, I'm only getting a small loss. And so what?"

And if you trade Forex, try your system on a demo, until you know for sure that it works. It gives you confidence.

harrytrader · May 8, 2004

repetition

Quote from keyser:

I tested my system, it works. I find good set-ups and set targets that are reached 80% of the time!!! But I have a hard time entering a trade at the time when it sets up right. I am afraid it won't work and most of the time it does work. Anybody having the same issues and knows how to deal with this?

Thank you.

cooldude · May 8, 2004

Quote from keyser:

I tested my system, it works. I find good set-ups and set targets that are reached 80% of the time!!! But I have a hard time entering a trade at the time when it sets up right. I am afraid it won't work and most of the time it does work. Anybody having the same issues and knows how to deal with this?

Thank you.

Afraid to use the Holy Grail?

Gimme,
gimme,
gimme
the holy grail
and I'll give you
part of the profits.
Just name the % !!!
You are afraid and frozen
and
I am fearless and greedy!

Solution:
Tell somebody to click for you.

harrytrader · May 8, 2004

Quote from harrytrader:

repetition

http://www.elitetrader.com/vb/showthread.php?s=&threadid=14264

repetitio est mater studiorum

John Wooden, considered one of the greatest coaches of all time at any sport once remarked, "The four laws of learning are explanation, demonstration, imitation and repetition. The goal is to create a correct habit that can be produced instinctively under great pressure. To make sure this goal was achieved, I created eight laws of learning-namely, explanation, demonstration, imitation, repetition, repetition, repetition, repetition, and repetition."

harrytrader · May 8, 2004

Now 80% doesn't mean edge by itself you can have 90% of probability to win 11000$ at roulette with a 10000$ bet still the edge is against you.

Quote from harrytrader:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=14264

repetitio est mater studiorum

John Wooden, considered one of the greatest coaches of all time at any sport once remarked, "The four laws of learning are explanation, demonstration, imitation and repetition. The goal is to create a correct habit that can be produced instinctively under great pressure. To make sure this goal was achieved, I created eight laws of learning-namely, explanation, demonstration, imitation, repetition, repetition, repetition, repetition, and repetition."

nitro · May 8, 2004

Quote from keyser:

I tested my system, it works. I find good set-ups and set targets that are reached 80% of the time!!! But I have a hard time entering a trade at the time when it sets up right. I am afraid it won't work and most of the time it does work. Anybody having the same issues and knows how to deal with this?

Thank you.

IMO,

The fear you are experiencing is telling you something important. Here is how to tell if it is a "good" thing or not.

If you have traded before and it seems like you could do nothing right, then the fear is warranted and you should listen to it.

If you have traded before and it seemed like you could do nothing right, but you went back to the drawing board and now you really think you can give it a shot again, then take the rest of the advice most of these people are giving you.

What I am trying to say is that feeling fear is a good thing when you are getting killed. Feeling fear for past failures that paralyzes you _forever_ is not good.

nitro

LiL"C" · May 8, 2004

You have to be able to pull the trigger and say screw it it's only money. There's a saying we use in the pool halls and poker rooms if you gonna sweat it then don't bet it. In other words if your to nervous to pull the trigger then sell your gun. Don't get me wrong it's good to be a little nervous because it keeps things exciting but if you are right 80% of the time that's like have the nuts "the upper hand" in anything that involves winning. It's like giving the superbowl champions 28 points and the opposing team's quarter back is out. It's like spotting Tiger Woods a 10 stoke lead. It's like getting a Royal Flush when the pot is maxed out. In other words you just got to do it. Listen to your head and your gut feeling's. Next time you get the nuts and you stock hits the number your looking for PULL THE TRIGGER
Good Luck and let me know if I helped in anyway.