Quant opinion: Surpassing the Fear of the Losing Money

(Last Updated On: November 20, 2011)
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Quant opinion: Surpassing the Fear of the Losing Money

I was recently asked in an interview what I would say to a trader or investor who is fearful.  That is, what would I say to help them overcome their fears and trade without fear. There are a fe…


The best way to overcome fear is to automate trading imho… and to move all the physical infrastructure out of reach, for example to a leased server. And check it once a day only to make sure that everything still works.


I think that’s a great idea. I firmly believe that looking at th he markets too much during the day for automated traders is highly destructive for most traders. Usually, the trader is tempted to deviate from his strategy as he see some chart pattern or news event that causes deviations. If you look at screen too much everyday, you eventually start seeing pink elephants.

By leased server, what exactly do you mean?



Yes – you should have strict objective rules on when to enter, take profits, or stops for sure! Thanks for the comments gents!

I daytrade FX and I’m both fearless and respectful of the market. The only thing we “control” is our decision to enter a trade. After that, the market decides whether or not we succeed.

One policy I have is to stay OOTM (Out of the Market) unless I have at least 3 *compelling reasons* to enter a trade. Given those three, I have no fear of pulling the trigger. Staying in a trade requires the same thoughtfulness but whether I exit a trade for 3 pips or 130 pips, I count *any* profitable trade as a win.




NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs