Market Psychology – Face your Fear
By: Gaurav Taneja, Financial Trainer, Venteskraft May 18, 2020
Do you remember when we talked about the types of traders who keep imagining about the profits or losses? What we will discuss now is a little different than that. In this blog we discuss about the way to face your fear. If you missed the previous blog read it here.
Alan fantasizes about becoming a profitable trader. He dreams of big cars and spacious houses and a lot of bank balance. Somewhere deep down in his mind, he thinks that if he had such wealth he could afford a life full of luxury. Sounds familiar? Most newbie traders are magnetized by the thought of trading to fulfill fantasies, and there is nothing wrong about that. The quest for wealth and greatness is a strong motivator. But the most experienced traders know that at the end of the day the prizes go to the humble seek for nothing but the joy for trading.
You must have watched the great movie “3 Idiots”, doesn’t Rancho tell there, that enjoy the process. That said, trading can be very tedious some times. In order to get to the higher level you must trade day after day, week after week, month after month. And even the most pleasurable activity loses its attraction when it is supposed to be done again and again. And not only that, but one must equally make profits to compensate for the losses they are making. Because of all this there is a real fear hiding at the back of most traders’ minds. There are high chances that you might lose your composure, or the stress will get to you and you’ll burn out. At what comes next, you might not be able to trade again.
These possibilities are difficult to accept and the easiest way to deal with them, which comes to our minds, is to ignore them. We simply accept that it is never going to happen. We even start pretending that way. But the truth is, it is easy to avoid these unpleasant possibilities in the short term, but one day you have to face them. So why not do it sooner than later? Till we simply face our fear, it will be constantly staying in our heads. We are most anxious anticipating the disaster coming than facing the fear with courage.
If you gather up the courage to face your fear that these possibilities will happen one day or other, then it is really good. You came one step near to your future in trading. After that you should have a recovery plan. As a newbie trader, it is very easy to wipe out your balance until you find out which strategies work in which market conditions. Even when you know these things, and you find yourself little off from the disciplined track that former is again a possibility. So it is advisable to have an active plan like a part time job so that you can keep your capital and mental peace at stable levels. You will not be affected by the possibilities that you might not be able to trade in the future due to these reasons.
This is a natural tendency to look the other way when from one way the trouble is coming. And trading is demanding and stressful, but if you have the courage, you are sure to go a very long way.