Fear Of Trading

Anything of value in life requires mental and physical efforts and involves time, energy, and resources.

Just like becoming a highly-paid doctor earning a six-figure income requires years of hard work, becoming a highly successful trader needs a decent capital, emotional strength and years of toiling.

Too much knowledge, analysis and theory can have an adverse effect, instilling doubt and uncertainty in every decision taken.

A more effective way is to pick a few trading tools that suit you and leave the rest.

The most common reaction in a fear situation is the attitude of, “I can’t!”

This is the fear of failure that stops us from taking action. It often shuts down the brain and causes us to revert to the “fight-or-flight” reaction.

Your self-image, the way you see yourself and think about yourself, is eventually altered by feeding your mind these positive mental pictures of yourself performing at your best.

So visualize yourself performing with confidence and competence in an area where you are fearful.

Success in “normal” circumstances does not mean that you will succeed in a crisis since, in a crisis, the rules change. However, it can make you feel confident and make you highly vulnerable to the next crisis.

Your own incentives may support an illusion of control. If you draw up your own worst-case scenarios, you will always pass, but as a result, you will develop blind spots.

Encourage innovation in risk models to increase diversification and decrease risk.