Advice for a FEAR based trader…
What advice would you give to a trader who struggles with fear? Here’s a short story of what happened today and what I said….
What advice would you give to a trader who struggles with fear? Here’s a short story of what happened today and what I said….
2 Comments
If I get into a mindset where I’m fearful of losing money I try to think “would I take this trade if I was risking X £ instead of YYY £”. e.g. If I was risking £1000 I might be worried about taking the trade – not because it wasn’t a good trade to take, but just because of the amount of money involved. But if I think instead would I take it if I was risking £1 then that helps to think objectively about whether the trade is a good one and not about the amount of money involved. Another way is to think in pips and not about the amount of money involved. Lastly if this still a problem, consider placing smaller size trades and working back up until confidence improves again. This is already assuming of course that the risk per trade is a sensible in terms of account size.
Good advice…..