Chapter 15
Fear: Your Constant Trading Companion
IN THIS CHAPTER
Recognizing and managing trading anxieties and fears
Developing strategies for preventing fear
Keeping regret in check
Avoiding the worst trading errors
This chapter deals with the strongest of all human emotions: fear. Fear is everywhere and frequently crops up in trading. Although feeling fearful is extremely unpleasant, it’s crucial that you understand the source of your deep-rooted fears and face them head-on. That way, you'll see how to deal constructively with errors in trading instead of falling victim to regret and self-pity. If you use the techniques outlined here to avoid the evolutionary fear trap, you'll be able to maintain the emotional equilibrium you'll need to trade successfully.
Trading fears arise from a whole array of various thoughts in your mind and can cause emotional as well as physical reactions. If the markets take over control of you, you've already lost. You're emotionally vulnerable and you can quickly lose your balance. Change your thoughts and your reactions to them will also change, allowing ...
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