Trading Wisdom that took me a few decades to learn how to avoid the trader’s greatest & fatal enemy – “FEAR”!

Markets are driven by greed and fear.

We get into the markets out of greed and get out due to fear.

Fear is something that we predict or think may happen in the future; it is a projection of our mind. Fear is a fantasy rather than fact, it is unreal, and it is an illusion.

The moment we get into the markets, our FEAR takes over our greed:
When we go long the market, and if the market moves against us, we FEAR it may move further down.
When the market moves in our favor, and if it suddenly starts going the other way, we FEAR it may change its course of direction.
When we are holding a winning position and enjoying good profit, we FEAR if we were to hold onto it for any longer, the market may reverse anytime and we will have to give back a big junk of our profits.
When we suffer a losing position, we FEAR if we were to stop out or cut loss too early, the market may go back to our original favorable direction!
When we read the news, we FEAR if the news is working against our position.
When we look at the technical charts for the confirmation hints of the market heading north, we FEAR when the chart formations/patterns point towards the south direction.

FEAR will keep haunting us as long as we are in the market. If we follow the market movements for 1 hour, we will suffer the FEAR for that 1 hour; if we follow for 4 hours, we have to endure our FEAR for that 4 hours; if we follow for the whole day, we will end up eating, shitting and living with our fear for that whole day, OMG! What kind of life is that?

FEAR will immediately disappear once our positions are closed, it is no more there.

So, FEAR is self-inflicted, it is an illusion, it is unreal. FEAR lands us up with irrational, destructive mindset to make unwanted, self-sabotaging, fatal trading mistakes!

Avoiding FEAR is the NO. 1 mental challenge a trader has to learn to master before he can become the Ultimate Winner!

It took me for a while to realize that “Avoiding FEAR” is extremely vital and critical to my forex trading success! Below I have listed out my hind sights, which in fact are just some commonsense everyone knows. But in reality they are the most overlooked and yet the most powerful and effective ones which I used to achieve trading with peace of mind, without FEAR and to become one of the Ultimate Winners.

Trading wisdom I used to avoid FEAR:
1. Don’t follow the market
2. Don’t read news
3. Don’t read technical charts
4. Don’t listen to craps
5. Don’t focus on the outcome of your trades
6. Use a mechanical trading system
7. Have a balanced, diversified portfolio
8. Have Risk/Money Management
9. Plan your trade and trade your plan
10. Stick with your trading rules
11. Maintain an “Abstract Money” mentality
12. Be a “dumb”, don’t think
13. Have belief and faith in “Trends”