Losing traders are controlled by fear.
Their greatest mistake is to fear making a mistake.
Fear is an emotional state of anxiety due to the presence or perceived presence of danger.
(Stress is often defined as anxiety from an unknown source.
) Fear has a strong influence in a trader's personality.
Fear weakens the rational trade decision-making process by emotionally relating the possibility of past financial losses to the future.
Fear prevents from operating normally the decision making of the trader resulting in no trading decision.
Fear draws out a trader's "flight or fight" response.
The trader will either take actions as demanded by his trading methodology or remove himself from the presence of danger.
The winning trader accepts the possibility of losses yet has the self-confidence to take action despite fear.
They learn from their mistakes.
Self confidence develops from self-discipline.
It comes from believing in one's abilities, assessing and accepting risk, then taking actions.
Managing fear and accepting mistakes are an important part of the trading educational experience that makes success possible.
Risk assumptions are part of an educational process that the winning traders know that without it, personal or financial growth is impossible.
Only emotionally healthy traders can assume risks, since losses must be emotionally and financially acceptable to each individual trader.
Each trader must define their own threshold of pain for each, and develop the self confidence to accept them.
For a losing trader to become a winning trader, one must change the thoughts responsible for the losses.
But it is difficult to alter the thought that have been fixed firmly in a trader's personality due to the influence of those intertwined emotions: fear, anger, guilt.
There are many ways fear can be used for financial destruction.
But the common denominator is allowing fear to control trading actions.
It is important to analyze fear and determine its origin to learn why it is being experienced.
Most fear is based on irrational beliefs adopted years ago.
Until fear of losing money is understood and accepted as part of the trading experience, the trader may simply stop trading.
Traders should never borrow money or risk money they can't afford to lose.
Their greatest mistake is to fear making a mistake.
Fear is an emotional state of anxiety due to the presence or perceived presence of danger.
(Stress is often defined as anxiety from an unknown source.
) Fear has a strong influence in a trader's personality.
Fear weakens the rational trade decision-making process by emotionally relating the possibility of past financial losses to the future.
Fear prevents from operating normally the decision making of the trader resulting in no trading decision.
Fear draws out a trader's "flight or fight" response.
The trader will either take actions as demanded by his trading methodology or remove himself from the presence of danger.
The winning trader accepts the possibility of losses yet has the self-confidence to take action despite fear.
They learn from their mistakes.
Self confidence develops from self-discipline.
It comes from believing in one's abilities, assessing and accepting risk, then taking actions.
Managing fear and accepting mistakes are an important part of the trading educational experience that makes success possible.
Risk assumptions are part of an educational process that the winning traders know that without it, personal or financial growth is impossible.
Only emotionally healthy traders can assume risks, since losses must be emotionally and financially acceptable to each individual trader.
Each trader must define their own threshold of pain for each, and develop the self confidence to accept them.
For a losing trader to become a winning trader, one must change the thoughts responsible for the losses.
But it is difficult to alter the thought that have been fixed firmly in a trader's personality due to the influence of those intertwined emotions: fear, anger, guilt.
There are many ways fear can be used for financial destruction.
But the common denominator is allowing fear to control trading actions.
It is important to analyze fear and determine its origin to learn why it is being experienced.
Most fear is based on irrational beliefs adopted years ago.
Until fear of losing money is understood and accepted as part of the trading experience, the trader may simply stop trading.
Traders should never borrow money or risk money they can't afford to lose.
Source...