Overcome your trading fears article
: http://www.highperformanceglobal.com/overcome-your-trading-fears-2/Overcome Your Trading Fears highperformanceglobal.comWe have all experienced that feeling of fear in our trading; maybe it was the fear of loss, the fear of missing out or the fear of being wrong. Fear gets in our way – it affects the execution of our trading strategies. So what…
–Great article, you pointed out all those daily topics we discuss on the trading floor! I allways point out that every trade is a new one but it is hard to place the bias on the background! It is as you point out in sports, you have to focus on every new time you have to perform… and not becoming too much influenced by your opponent (HE is much better) or your own [BAD] performance the day before.
–I note you were consultant to BBC’s Million dollar trader which was a bit of a let down. Point made though was that you cannot simply take people off the street and make them into traders. I have tried to educate potential options traders but irrationality creeps in very quickly. It’s 13 years since my first options trade and I don’t believe we ever have full control of emotions. It helps to have a plan and an edge but having traded solo all these years I would love to trade with others and think that must give such a huge advantage.
–being able to take each day and trade at a time is a learnt skill, it does not come easily for most people, and the role of emotion in memory can also determine how hard or easy it is to move on. A good end of day/trade review can be a helpful part of this, combined with some mental rehearsal or mindfulness based processed.
for me the key aspect of MDT was that it got trading onto national TV from a major broadcaster – no mean achievement! Viewers are rarely aware of the amount of structure and regulation that is imposed when making TV for national chanels and also the artistic views and license that are held by the production team. I agree that we cannot totally and solely control our emotions at all times, however research and application in the military and in sports and trading is showing more and more that our emotions can be significantly managed, that the fear response for example can be influenced, that our reaction to stress and anxiety can be reduced and controlled, all of which are positive steps in the right directions. Neuroscience has shown that emotions are key to making decisions – but we need to harness the right emotions to make our best decisions – emotional management. Trading with others can have significant advantages – information flow, market feel, idea sharing and generation and social aspects (shared pain over a beer!). Prop groups faciltate this – otherwise good online communities maybe the next best thing.
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!