If you’re struggling to make profits in trading, it might not be because of your timing strategies. Often, it’s our own fears that prevent us from executing profitable trades. Last Article, we looked at the fear of missing out and the fear of failure. This Article, we’ll be exploring the fear of letting a profit turn into a loss and the fear of not being right.
The Fear of Letting a Profit Turn into a Loss
Many traders take quick profits and let their losing trades run, often because they want to guarantee they are winning. At FibTimer, we trade trends and stay with that trade until we have enough evidence that the trend has reversed. We don’t try to quickly lock in profits but instead let the markets themselves tell us when to do it.
Sometimes this approach may result in small losses if there’s a false signal to start with, but history tells us that once a real trend begins, it usually lasts much longer than expected and generates huge profits. We must trade all signals since we can’t predict which signal is the start of the next big trend. The long-term assurance of profits from successful trends means we don’t need to worry about short-term losses.
The Fear of Not Being Right
Some traders care too much about being right in their analysis on each trade instead of looking at timing as a probability game where they will be both right and wrong on individual trades. This is a function of the individual’s ego, and to be successful, we must trade without ego at all costs.
Ego leads to the desire to take winners too quickly and sit on losers, hoping to exit at breakeven. This mentality leads to equating the trader’s net worth with their self-worth, which results in the ego’s need to protect its version of the self. To rid ourselves of the potential for self-sabotage, we must let go of the ego’s need to protect its self-version.
Perfectionism leads to failure in trading. It’s impossible to be a perfectionist and expect to be a great market trader. You must strive for excellence over a sustained period, as opposed to judging each buy or sell signal as perfect. The great traders make losing trades, but they are able to keep the impact of those losses small.
In Our Trading, we use Gann and Astro systems that grade us on how effectively we execute our system’s entry and exit signals. Trading with Gann and Astro systems helps to remove emotions from trading, and we judge ourselves not on whether our trade analysis was right or wrong, but instead on how well we executed our system’s signals.
Conclusion
To be successful in trading, you must move from a fearful mindset to a confident one. You need to believe in your ability to execute every trade, regardless of the current market sentiment. You must also realize that the timing strategy you’re following will be profitable over time and build the confidence needed to take all trades.
It’s essential to manage your fears and focus on executing your timing strategy. Many traders give up at the critical point where they need to have the most confidence in their strategy. You win in trading as you conquer the four major fears of missing out, failure, letting a profit turn into a loss, and not being right. Trading is a long-term game, and it’s essential to adopt a mindset that signals you’re in it for the long haul.
thank you sir