Fear of losing

Ariest posted:
The fear of loss really affects us a lot and we do not make certain steps to move in the right direction.

Every trader should make a back up plan for lose.

SteveHanks posted:

Ariest posted:
The fear of loss really affects us a lot and we do not make certain steps to move in the right direction.

Every trader should make a back up plan for lose.

Yes indeed!

Losing money sucks but is normal at times for traders. You have to be prepared for that and use it as a learning experience, rather than getting depressed or beating yourself up over it.

Fear of losing is something that drives traders crazy actually. They always try to win this fear and every day starts from a struggle with these fears. To my mind, it's the most difficult task in trading activity. I mean the task to set up your mood and understand that you have to control your emotions. I believe the most effective way is to look in the eys of your fears. Try to fight them despite the fact that these fears always try to take over control your mental health. Traders shouldn't be afraid of losses, because loss is a great teacher and it helps traders to foresee further steps and never make mistakes actually.

I think this fear can be removed or at least managed by employing the right strategies. Evidence and seeing something in the grand scheme can help see that losses are a part of trading and don't have to be an account buster. Extensive backtesting of a strategy before attempting it live will show you that statistically despite losses, your system works or not. Then when going live with this strategy, you can use a micro account where the total amount lost in a dreadful worst case scenario is negligible to you. Finally as part of any plan, a sound risk management strategy should be in place. All these may sound arbitrary but for me really help me get a handle on my feelings toward loss. Personally as I have moved through my own journey I am narrowing the emotional gap that I feel between winning and losing on an individual basis by becoming less bothered by either.