How do you get over fear of taking a risk?

Quote from jinxu:

I know every trades has some risk, but I find that I keep worrying about it every time I see a good setup and it makes me hesitate from entering. I would constantly just watch the price bounce up and down. Should I stop doing that as I suspect that is what causing my nervousness.

What are ways I can get over this psychological barrier? Maybe I should just dive in and put a reasonable stop?
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You seem like a new trader.
You fear loss and respect risk. This risk/loss sensitivity is the only thing that will protect your capital from the dangers of overtrading.
With this risk sensitivity you will definitely survive and persist long enough to find low risk entries that you are comfortable with.
Carry on, nothing is wrong.
 
sorry to disappoint you, but risk taking is hereditary and to some degree, environmental ie how u were raised. some people are louder and some people are quieter. u could trick ur mind into not worrying about taking some risk by first making so much money somehow like the lottery that gambling $10,000 means nothing to you.

Quote from jinxu:

I know every trades has some risk, but I find that I keep worrying about it every time I see a good setup and it makes me hesitate from entering. I would constantly just watch the price bounce up and down. Should I stop doing that as I suspect that is what causing my nervousness.

What are ways I can get over this psychological barrier? Maybe I should just dive in and put a reasonable stop?
More...
 
Quote from trend7rader:

trade small enough the risk doesn't mean anything to you, then build up your size gradually as you build confidence in your method / edge
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yes the above is the best advice, all others you can disregard
 
agreed. this makes a "risk" not seem like a risk. it also preserves your $. i risk .2% of my $ per trade. keeps me focused on the market. i have no clue how people can risk 10% or more on a single trade. 10 losers and your toast. i have had 8 losers in a row so that would have meant losing 80% of my account. no way. thats where you feel the burn of "risk". im not saying it cant be done because there are a million ways to trade, but just doesnt work for me.

Quote from trend7rader:

trade small enough the risk doesn't mean anything to you, then build up your size gradually as you build confidence in your method / edge
More...
 
you see all that crazy price action out there?

all people that care nothing for risk.





You are posting too soon after your last post. Try again in a few light years
 
Quote from xburbx:

agreed. this makes a "risk" not seem like a risk. it also preserves your $. i risk .2% of my $ per trade. keeps me focused on the market. i have no clue how people can risk 10% or more on a single trade. 10 losers and your toast. i have had 8 losers in a row so that would have meant losing 80% of my account. no way. thats where you feel the burn of "risk". im not saying it cant be done because there are a million ways to trade, but just doesnt work for me.
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Actually, 8 losers in a row would result in losing about 57% of your bankroll a la Kelly. Of course, to "invest" in set-ups that use 10% of one's bankroll, one must have the proper risk/reward to warrant such an amount again a la Kelly.

Joe.
 
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