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examine the market and attempt to anticipate the market directionthe more analyzing they dothe more they will exclude other, perhaps vital, information. These traders also fear that somehow they may actually win, and that they do not deserve to win because they did not "work" for it. |
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In a desperate attempt to combat their fear, understand the market, and avoid more losses, novice traders will include more variables in their analysis, use more mathematical studies, and obtain more news feeds, thereby focusing even more intently on these additional variables. This practice virtually guarantees that they will overlook other data that could be vitally important. However, no trader can absorb all known facts about a particular market, since there will always be somebody or some news event that will affect the price action unexpectedly. All too often this means that traders will create their losses simply because they focused on trying to avoid a loss. Their unconscious mind helped them get exactly what they were focusing on! |
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Whenever you make a decision while you are experiencing fear, it will almost always be a wrong decision. For example, if in an effort to reduce your level of fear while trading you decide to add more indicators to your methodology, you will most likely fail to accomplish the desired outcome of consistent profits. This is because your ability to correctly decide what to do while being afraid is greatly diminished by the beliefs that you are currently experiencing. |
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Successful traders are focused on the markets in an empowering way. They are constantly looking for market information that allows them to profit. They are more concerned with information that reinforces what they want, and they are less concerned with information that reinforces what they fear the most. In other words, their focus is on what they desirenot on what they don't want. It is very difficult for novice traders to change their beliefs without realizing how important the trading virtues are. It seems that every ad that new traders see tells them how easy it is to make moneyif they will only buy this new computer program or this overpriced trading course. Generally the more a product is advertised, the more worthless it is. People will always seek out quality. A producer of quality is able to enjoy word-of-mouth advertising, without the expense of a large advertising budget. |
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Once your fear starts to diminish, you will begin seeing certain market characteristics that you were previously blind to, thereby allowing you to start producing consistent profits. Many traders will refuse to define a loss, insisting that it is only a paper loss, that they are right, and that the market is wrong. This is because their ego is attempting to remain in control, and maintain a false sense of certainty. |
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