Any difficulty . most e-mini traders, sometime inside their career, practical knowledge some sort of fear-based buying and selling. I have viewed very experienced traders go through fear-based buying and selling, however usually it does not take novice dealer that undergoes a new rough spot then will begin to try out the signs regarding fear-based buying and selling.
What is fear-based trading?
The name of this particular malady pretty well sums up the background for this trading problem. Perhaps a new trader has put together a month or two of decent trading and makes a few poor trades, or good trades that simply did not work out, and becomes fearful of losing. Some typical symptoms of fear-based trading are:
· Cutting potential profits short, usually at 3 to 5 ticks
· Cutting potential profits short when of the trade is moving along just fine and no potential problems appear imminent.
· Passing up tried and true setups; fear of pulling the trigger on a trade
· Reverting back to excessive use of the trading simulator; individuals often trade like master traders on the simulator but are mediocre at best when trading real money.
Have you experienced any of these symptoms? It would be unusual if you hadn't at some point in your career. We all go through periods of trading where our results do not match our expectations and have to deal with this paradigm at the psychological level.
For the beginning e-mini trader, fear-based trading can often be a terminal (from a trading standpoint) condition. Where the more experienced trader has made Journal, a good deal of experience, and the knowledge that he or she traded very well at one point in their career, the novice e-mini trader is left with the task of unraveling his or her own fears alone. This is no easy task as the fear may be irrational or beyond the traders ability to ascertain.
As they long time trading educator, very few students go through my trading program without experiencing some mild forms of fear-based trading. Of course, the students have the benefit of my experience to help them work through their fears. Additionally, my trading room is a very tight knit group and is often very willing to help this trader overcome his or her fears. In my opinion, just having a group of individuals to talk with and share your problem with it is often more than I can offer through my experience in trading.
In summary, there are a large number of traders who experienced fear-based trading and have gone on to be very successful traders. Having a mentor and/or a sympathetic trading room to help with the stipend fears can be very helpful. I do not suggest trying to go it alone if you experience the symptoms I described earlier in the article. Find a knowledgeable trader and describe your symptoms to him or her for help.
What is fear-based trading?
The name of this particular malady pretty well sums up the background for this trading problem. Perhaps a new trader has put together a month or two of decent trading and makes a few poor trades, or good trades that simply did not work out, and becomes fearful of losing. Some typical symptoms of fear-based trading are:
· Cutting potential profits short, usually at 3 to 5 ticks
· Cutting potential profits short when of the trade is moving along just fine and no potential problems appear imminent.
· Passing up tried and true setups; fear of pulling the trigger on a trade
· Reverting back to excessive use of the trading simulator; individuals often trade like master traders on the simulator but are mediocre at best when trading real money.
Have you experienced any of these symptoms? It would be unusual if you hadn't at some point in your career. We all go through periods of trading where our results do not match our expectations and have to deal with this paradigm at the psychological level.
For the beginning e-mini trader, fear-based trading can often be a terminal (from a trading standpoint) condition. Where the more experienced trader has made Journal, a good deal of experience, and the knowledge that he or she traded very well at one point in their career, the novice e-mini trader is left with the task of unraveling his or her own fears alone. This is no easy task as the fear may be irrational or beyond the traders ability to ascertain.
As they long time trading educator, very few students go through my trading program without experiencing some mild forms of fear-based trading. Of course, the students have the benefit of my experience to help them work through their fears. Additionally, my trading room is a very tight knit group and is often very willing to help this trader overcome his or her fears. In my opinion, just having a group of individuals to talk with and share your problem with it is often more than I can offer through my experience in trading.
In summary, there are a large number of traders who experienced fear-based trading and have gone on to be very successful traders. Having a mentor and/or a sympathetic trading room to help with the stipend fears can be very helpful. I do not suggest trying to go it alone if you experience the symptoms I described earlier in the article. Find a knowledgeable trader and describe your symptoms to him or her for help.
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