Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

painofhell

The Four Faces of Fear

Recommended Posts

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.

 

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.

Edited by painofhell

Share this post


Link to post
Share on other sites

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 :)

Share this post


Link to post
Share on other sites

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.``

Edited by shuvo7748
spelling error

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Why not to simply connect you account to myfxbook which will collect all this data automatically for you? The process you described looks tedious and a bit obsolete but may work for you though.
    • The big breakthrough with AI right now is “natural language computing.”   Meaning, you can speak in natural language to a computer and it can go through huge data sets, make sense out of them, and speak back to you in natural language.   That alone is a huge breakthrough.   The next leg? AI agents. Where they don’t just speak back to you.   They take action. Here’s the definition I like best: an AI agent is an autonomous system that uses tools, memory, and context to accomplish goals that require multiple steps.   Everything from simple tasks (analyzing web traffic) to more complex goals (building executive briefings or optimizing websites).   They can:   > Reason across multiple steps.   >Use tools like a real assistant (Excel spreadsheets, budgeting apps, search engines, etc.)   > Remember things.   And AI agents are not islands. They talk to other agents.   They can collaborate. Specialized agents that excel at narrow tasks can communicate and amplify one another’s strengths—whether it’s reasoning, data processing, or real-time monitoring.   What it Looks Like You wake up one morning, drink your coffee, and tell your AI agent, “I need to save $500 a month.”   It gets to work.   First, it finds all your recurring subscriptions. Turns out you’re paying $8.99 for a streaming service you forgot you had.   It cancels it. Then it calls your internet provider, negotiates a lower bill, and saves you another $40. Finally, it finds you car insurance that’s $200 cheaper per year.   What used to take you hours—digging through statements, talking to customer service reps on hold for an hour, comparing plans—is done while you’re scrolling Twitter.   Another example: one agent tracks your home maintenance needs and gets information from a local weather-monitoring agent. Result: "Rain forecast next week - should we schedule gutter cleaning now?"   Another: an AI agent will plan your vacations (“Book me a week in Italy for under $2,000”), find the cheapest flights, and sort out hotels with a view.   It’ll remind you to pay bills, schedule doctor’s appointments, and track expenses so you’re not wondering where your paycheck went every month.   The old world gave you tools—Excel spreadsheets, search engines, budgeting apps. The new world gives you agents who do the work for you.   Don’t Get Too Scared (or Excited) Yet William Gibson famously said: "The future is already here – it's just not evenly distributed."   AI agents will distribute it. For decades, the tools that billionaires and corporations used to get ahead—personal assistants, financial advisors, lawyers—were out of reach for regular people.   AI agents could change that.   BUT, remember…   We’re in inning one.   AI agents have a ways to go.   They’re imperfect. They mess up. They need more defenses to get ready for prime time.   To be sure, AI is powerful, but it’s not a miracle worker. It’s great at helping humans solve problems, but it’s not going to replace all jobs overnight.   Instead of fearing AI, think of it as a tool to A.] save you time on boring stuff and B.] amplify what you’re already good at. Right now is the BEST time to start experimenting. It’s also the best time to find investments that will “make AI work for you”. Author: Chris Campbell (AltucherConfidential)   Profits from free accurate cryptos signals: https://www.predictmag.com/     
    • What a wild year.   AI seems to be appearing everywhere you look, Paris hosted a weird Olympics, unrest continues in the Middle East, the US endured a crazy-heated election, and the largest rocket ever to fly successfully landed in a giant pair of robot arms.   Okay, but what about the $money stuff?   Well, this year we've seen a load of uncertainty - inflation is still biting and many businesses have gone down.   Property has been very fractured, with developments becoming prohibitively expensive, while other markets have boomed.   It hasn't been an easy ride, that's for sure.   However, the stock market has had some outstanding results, and for those who know how to trade, some have done VERY well for themselves.   Some have replaced their incomes. Some have set themselves up for the rest of their days on this planet.   How about you? How did you go? Author: Louise Bedford    Profits from free accurate cryptos signals: https://www.predictmag.com/  
    • U Unity Software stock watch, attempting to move higher off the 22.4 triple+ support area at https://stockconsultant.com/?U  
    • TSSI TSS stock, watch for an ascending triangle breakout above 11.49, target 15 area at https://stockconsultant.com/?TSSI
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.