No one likes to lose money. The thought of it is something that can cause anxiety for many traders and can paralyze us when we should be entering a trade. Have you ever found yourself staring at the screen watching a trade you should have taken, moving exactly how you thought it would…only that you didn’t pull the trigger?
What causes fear? We fear the unknown. Ever feel anxious when going to the dentist? We fear that we may feel pain from a needle or drill. If we knew that the visit would just be a routine cleaning then we may not be so nervous to go.
When we trade, the fear of loss that keeps us from trading stems from not knowing where the market or our stock will move. We trade knowing the highest probability for the price movement based on our analysis. But in the end, we cannot control the direction… Continue Reading
