Fear Of Being Wrong in Trading - Deepstash

deepstash

Beta

deepstash

Beta

How to Overcome Your Fears in Trading?

Fear Of Being Wrong in Trading

We are hardwired to be right and are awarded throughout our life pursuing what is right while being punished if we are wrong. From an early age, we learn to avoid the embarrassment of being wrong.

Trading success does not rely on one being right all the time or even on the IQ of the person. The outcome is equality reliant on the emotional makeup of the person.

188 SAVES

549 READS


EXPLORE MORE AROUND THESE TOPICS:

SIMILAR ARTICLES & IDEAS:

Failure Rate In Trading
Failure Rate In Trading

This is on the higher side, with only about 20 per cent traders being consistently in the black.

This low rate of success in trading is due to many factors, knowing about which can help a ...

Anything Of Value Needs Effort

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.

Analysis Paralysis in Trading

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.

Our Most Common fears
  • Fear of failure, poverty, and loss of money
  • Fear of losing love 
  • Fear of losing our jobs and our financial security
  • Fear of embarrassment or ridicule
  • Fear ...
Fear Paralyzes Action

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.

Visualize Yourself as Unafraid

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.

The illusion of control

Stress testing is a standard technique used to test how someone will perform in the "worst-case" scenario. The problem is that the "worst-case" scenario is subjective, causing an illusion of contro...

Success and crisis

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.

Drawing up your own tests

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.