Welcome to the Traders Laboratory.

The Healthy Trader Let's share information on what it takes to maintain a healthy trading lifestyle. To be at the top of your game you have to take care of yourself -- here we'll all share how we do that, or should do that.

Reply
Old 08-16-2014, 03:43 AM   #1

painofhell's Avatar

Join Date: Nov 2011
Posts: 2
Ignore this user

Thanks: 0
Thanked 2 Times in 1 Post

The Four Faces of Fear

The Four Faces of Fear #1 Today, 06:00 AM
Right now I'm reading Trading in the Zone, a book on trading psychology by Mark Douglas. This book has been widely praised, and discussed extensively here on InformedTrades; I highly recommend folks check out Larry Folson's course and Magic's Trading in the Zone review to learn more and check out some great resources that are complementary to the book.
Like many others who have studied trading psychology or have traded themselves, the book identifies fear as the primary emotion that blocks traders from succeeding. Specifically, Douglas refers to the four types of fear traders face:

1. Fear of being wrong -- creates agony over entering trades
2. Fear of losing -- this often results in holding on to losing positions
3. Fear of missing out -- leads to chasing price and poorly timed entries
4. Fear of leaving money on the table -- translates to holding on too positions too long and poorly timed exits

For an audio/visual look at this subject, try the short video below.
https://www.youtube.com/watch?v=wqqWuyMPpBg"> https://www.youtube.com/watch?v=wqqWuyMPpBg" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355">

In terms of overcoming those fears, Douglas notes the importance of finding your edge and trusting it. Knowing your edge, gaining great confidence in it, and taking full responsibility of your trades is what Douglas prescribes as the antidote to fear.

These are simple concepts, but I thought they were worth highlighting -- especially for active traders, and those seeking to live the dream of trading for a living.

Last edited by painofhell; 08-16-2014 at 11:11 PM.
painofhell is offline  
Reply With Quote
Old 11-19-2014, 01:15 AM   #2

Join Date: Oct 2014
Posts: 70
Ignore this user

Thanks: 0
Thanked 1 Time in 1 Post

Re: The Four Faces of Fear

nice stuff. but i would rather to overcame my fear.
it's take more time to define each my ear while taking preaction differently for any kind of fear type.
face it, overcome and do it again
prax is offline  
Reply With Quote
Old 11-19-2014, 07:58 AM   #3

Join Date: Oct 2014
Location: Dhaka, Bangladesh
Posts: 90
Ignore this user

Thanks: 4
Thanked 6 Times in 6 Posts

Re: The Four Faces of Fear

For me major 3 Fear is

*Fear of Loss
* Fear of missing good trades
*Fear of being wrong

But i know ``Successful forex trading is about overcoming the major fears, gain confidence in my trading method and even more confidence in myself” ==> When i trade, i try to leave the emotions at the door.``

Last edited by shuvo7748; 11-19-2014 at 07:58 AM. Reason: spelling error
shuvo7748 is offline  
Reply With Quote

Reply

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
How to Handle Fear PristineTrading The Markets 0 07-16-2013 10:32 AM
Are You Struggling With Fear? mohsinqureshii Psychology 0 04-04-2012 12:14 PM
The Faces of "Fear of Missing Out" Rande Howell Psychology 24 03-08-2012 11:35 AM
Ego Vs Fear - Which is Worse Tradewinds Trading Psychology 37 07-23-2011 11:23 PM
Fear and Greed Ericthetrader General Discussion 27 05-14-2011 11:38 AM

All times are GMT -4. The time now is 11:40 PM.
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
©2006-2011 Traders Laboratory, All Rights Reserved.