Our approach to trading is determined by the vision of the future and expectations. For example, if we are too scared, we refuse to take mother risks, and as a last resort we may even be afraid to enter a deal. Our expectations, knowingly or unknowingly, have a huge impact on trading results.
Traders face many common fears, and each of them is based on beliefs and assumptions, which should be identified and refuted. For example, in his book “Trade in the Zone”, Mark Douglas highlights such fears, which became the cause of many trading mistakes: be wrong, lose money, exit the game, leave money on the table. Many of these fears reflect a fear of failure..
The best way to neutralize your fear of failure – identify basic assumptions, underlying, and refute them. Al bert ellis, prominent physiologist, argued, what's behind all the emotions, type of fear, lies a set of basic assumptions and beliefs. Often these assumptions “inadequate”, they restrict our actions. Instead of, to see the third problem in the face, we avoid dealing with them, trying to deny their existence. Often, but, it is useful to simply identify our false assumptions and change them.
Basic assumption, underlying, for example, fear of failure, this is faith, what you need to be absolutely competent, adequate and successful. Ellis claims, what such a belief creates fear and anxiety, which often generates fluctuations and self-doubt among traders. The emergence of this belief is understandable. To the extent, how we grow, at home?, at school or at work, we often face the adverse consequences of lack of experience and begin to believe, that you should be absolutely competent, adequate and successful in everything, what are we doing. but, we pay the price for this faith. If we believe, what you should always be competent, we spend all our precious psychological energy to overcome the negative consequences of failure, instead of, to focus on, what are we doing here and now, on the implementation of our trading strategy. Traders, convinced, that they must be absolutely competent, spend all their time worrying about, what did they do wrong, what could go wrong, how to, and how to cope in case of failure. These thoughts are distracting, they obscure the flow of direct experience and the ability to assess the current state of the market with constant precision.
Don't Let Fear of Failure Oppose Your Trading Success. You don't have to be perfect. As any seasoned one will tell you trader, everyone is doomed to make mistakes from time to time, and if you have problems overcoming them, You will be so worried and scared, that you will make even more mistakes. So rebut your inner conviction, underlying fear of failure: Remind yourself, what is not good to believe, that you must be absolutely competent, adequate and successful. No trader can meet this standard, and attempts to become such (what an irony) lead to incompetence and failure.
