How do you get over fear of taking a risk?

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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I am unable to trade small as I am already using max leverage with one contract. Using tight stop doesn't help either as those kept getting hit and reversing. I started having better success when I stopped doing that and widen my stops. However my capital is so low that 2-3 bad trades will wipe me out. http://www.elitetrader.com/vb/editpost.php?s=&action=editpost&postid=2906648#
 
Quote from jinxu:

I am unable to trade small as I am already using max leverage with one contract. Using tight stop doesn't help either as those kept getting hit and reversing. I started having better success when I stopped doing that and widen my stops. However my capital is so low that 2-3 bad trades will wipe me out. http://www.elitetrader.com/vb/editpost.php?s=&action=editpost&postid=2906648#
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With all due respect, IMO you really shouldn't be trading then. Being undercapitalized has to be one of the biggest reasons for failure because even if you have an edge, there is still a large % chance that you will go bankrupt.

I would suggest practicing your method(s) to ensure you really have an edge and save and don't trade until you have a reasonable bankroll for your risk/reward profile.

Joe.
 
Your screen name sounds Chinese. I believe in Asia and Europe you can trade smaller contracts with CFDs. Other than that, aren't ETFs a popular option nowadays? Instead of the ES futures, use SPY; instead of Mini-Gold, use GLD etc.

I have had some students who ran into the same problem like yours. Futures contracts are simply too huge for someone starting out in trading. You cannot possibly expect to trade well, if you risk your monthly pay with every single trade. So look into some alternative instruments that are out there. And yes, I agree with all the posts above who suggest you to trade smaller. Eventually you will make more money with smaller positions.
 
Quote from Palatine:

Your screen name sounds Chinese. I believe in Asia and Europe you can trade smaller contracts with CFDs. Other than that, aren't ETFs a popular option nowadays? Instead of the ES futures, use SPY; instead of Mini-Gold, use GLD etc.
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The name is chinese but i'm not chinese and I live in the usa. I like futures for the leverage. I don't think the SPY gives that???
 
I see you are doing very typical newbie mistakes but you might figure it out one day. Keep on practicing and hopefully you do find a good mentor. And no, SPY is not leveraged which is why I'm suggesting this instrument. If you think you can trade better with futures, then I won't stop you from doing so. It's your money (for who knows how long).
 
Quote from jinxu:

Here's a description and a chart of my trade on 7-27-2010.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=187235&perpage=6&pagenumber=208
http://www.elitetrader.com/vb/showthread.php?s=&threadid=187235&perpage=6&pagenumber=209

Anyone have any comments?
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Based on how you traded on 7/27/10 I would recommend that you liquidate everything and stop trading until you are sure that you have a method that works (atm you do not).

Maybe start with books written by Van Tharp...

read books on basic technical analysis and spend the next 2 years paper trading.
 
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