Now, we all have fears, it expands differently to everyone. Some are fearful of heights (like me), some are fearful of feathers (very rare but i know people who are), some fearful on risks and some fear of losing. When i mention losing, it can be anything from losing a car to losing someone they love and even up to losing money. What is this fear? Is it something we develop in our minds? And if something is created by our own minds, it is definitely possible for it to be cleared from our own minds too right? Hence what is FEAR actually?
False
Evidence
Appearing
Real
How do we overcome this? From my experiences, not only in my trades, to overcome this is to take action..but NOT with a blind action. It has to be planned and structured. I used to be really afraid of water too when i was young. I would really shout and scream when i was in the water. I could remember my instructor pretty much gave up on me. HA HA. but when i slowly grew a little older, i started at the shallow part of the pool and slowly try to kick, or swim or do something to keep myself afloat. True enough, i became better and i started swimming and swimming and now i enjoy the water so much. Now, if i were to let my fear keep me away from the water, i don't think i would even know how to swim now. Same goes to any other fears! So, is there some kind of mental block in you that tells you, "it's tough" or "it's impossible"? Remember that fears are created by your own good-self. If one can create fear in themselves, one can definitely clear it from them. It's just a matter of whether you want to do it or not.
Next comes the GREED. Also another destructive habit of humans. We humans are never satisfied. It's always a craving for more. One may have a honda, which then aims for an acura or a lexus, then an Audi, then a Beemer and etc. You know where i'm getting to right? It's good to have a goal to push yourself to wards it but greed is totally a different thing. Greed is the constant wanting of something bigger at the expense of everything. People keep wanting more money, they try to do things that are not familiar with them and do things more aggressively. Until to a point that when they can't get it, they turn into darker ways like stealing, robbing, money laundering, corruption. In trading, greed rewards no one but it can kill everyone. The hope of the market returning to your position when it is already going the other way or hoping for it to reach highs/lows that may not be achievable but on paper looks "lucrative"? Again, to stop this, there has to be an action for this where it definitely has to be planned and also to use the word "enough". Yes, this word is very subjective to different individuals as different individuals have different points of view. Some feels that earning 100 bucks a day is pretty good. Some says that's measly money. Some want 1 grand a day. Now, what these people are looking at are their targets. What is "enough" for them. And investment return can only be judged by the investment capital that is poured in. For example:
Lets take the standard Fixed deposit rate of let's say 3% per annum. If you want to earn more than 10k after a year, you definitely can't do that with just do that with 10-20k of capital right?it does not make sense. To get 10k net profit a year with 3%, your capital has to be around 320k-330k, right? So that's exactly it. People tend to get greedy and they want the most (or even more) with really little commitment. It just doesn't go hand in hand.
And the worst of all, the stubborn ones, whom are constantly in denial. "that won't happen to me, i'm sure". That's what they always say. People in this group tend to fall faster in all aspects. Things tend to fail around them but they do not realize they are the cause of it. Instead of embracing what went wrong could be their doing, instead they live in denial or start pointing fingers on EVERYTHING but themselves. They don't understand things happen for a reason, even if it's a bad thing. In trading, if you have a position and the market is going the opposite direction, the stubborn ones are the ones who will lose big time. They will hold on to their trade in FEAR of loss and stubborn to open up their minds to see the reality, the market keeps taking more and more money out of that person. It's the same for everything. For example a failed relationship. It takes two to clap. When things turned sour and it's beyond reconciliation, the next step is to end it and move on. Just like a trade, if the market goes opposite direction from yours, cut the losses and move on to the next trade. This is because, like a failed relationship, holding on to something bad and hoping it will get better is totally not going to happen and will eat the heart and soul out of you every day. Of course there is a way to stop this but that way will be the toughest thing for the stubborn ones to do..which is accept the reality no matter how harsh it will be and then from there, pick up the sticks and stones and rebuild again.
So for whichever the category one may be in, there always is a solution. It's only bound to the question of "to do or not to do?"
False
Evidence
Appearing
Real
How do we overcome this? From my experiences, not only in my trades, to overcome this is to take action..but NOT with a blind action. It has to be planned and structured. I used to be really afraid of water too when i was young. I would really shout and scream when i was in the water. I could remember my instructor pretty much gave up on me. HA HA. but when i slowly grew a little older, i started at the shallow part of the pool and slowly try to kick, or swim or do something to keep myself afloat. True enough, i became better and i started swimming and swimming and now i enjoy the water so much. Now, if i were to let my fear keep me away from the water, i don't think i would even know how to swim now. Same goes to any other fears! So, is there some kind of mental block in you that tells you, "it's tough" or "it's impossible"? Remember that fears are created by your own good-self. If one can create fear in themselves, one can definitely clear it from them. It's just a matter of whether you want to do it or not.
Next comes the GREED. Also another destructive habit of humans. We humans are never satisfied. It's always a craving for more. One may have a honda, which then aims for an acura or a lexus, then an Audi, then a Beemer and etc. You know where i'm getting to right? It's good to have a goal to push yourself to wards it but greed is totally a different thing. Greed is the constant wanting of something bigger at the expense of everything. People keep wanting more money, they try to do things that are not familiar with them and do things more aggressively. Until to a point that when they can't get it, they turn into darker ways like stealing, robbing, money laundering, corruption. In trading, greed rewards no one but it can kill everyone. The hope of the market returning to your position when it is already going the other way or hoping for it to reach highs/lows that may not be achievable but on paper looks "lucrative"? Again, to stop this, there has to be an action for this where it definitely has to be planned and also to use the word "enough". Yes, this word is very subjective to different individuals as different individuals have different points of view. Some feels that earning 100 bucks a day is pretty good. Some says that's measly money. Some want 1 grand a day. Now, what these people are looking at are their targets. What is "enough" for them. And investment return can only be judged by the investment capital that is poured in. For example:
Lets take the standard Fixed deposit rate of let's say 3% per annum. If you want to earn more than 10k after a year, you definitely can't do that with just do that with 10-20k of capital right?it does not make sense. To get 10k net profit a year with 3%, your capital has to be around 320k-330k, right? So that's exactly it. People tend to get greedy and they want the most (or even more) with really little commitment. It just doesn't go hand in hand.
And the worst of all, the stubborn ones, whom are constantly in denial. "that won't happen to me, i'm sure". That's what they always say. People in this group tend to fall faster in all aspects. Things tend to fail around them but they do not realize they are the cause of it. Instead of embracing what went wrong could be their doing, instead they live in denial or start pointing fingers on EVERYTHING but themselves. They don't understand things happen for a reason, even if it's a bad thing. In trading, if you have a position and the market is going the opposite direction, the stubborn ones are the ones who will lose big time. They will hold on to their trade in FEAR of loss and stubborn to open up their minds to see the reality, the market keeps taking more and more money out of that person. It's the same for everything. For example a failed relationship. It takes two to clap. When things turned sour and it's beyond reconciliation, the next step is to end it and move on. Just like a trade, if the market goes opposite direction from yours, cut the losses and move on to the next trade. This is because, like a failed relationship, holding on to something bad and hoping it will get better is totally not going to happen and will eat the heart and soul out of you every day. Of course there is a way to stop this but that way will be the toughest thing for the stubborn ones to do..which is accept the reality no matter how harsh it will be and then from there, pick up the sticks and stones and rebuild again.
So for whichever the category one may be in, there always is a solution. It's only bound to the question of "to do or not to do?"
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