Taking Risks

There is a quote that I like from an old movie, Point Break:

“… fear causes hesitation. And hesitation will cause your worst fears to come true. So it’s simple: You project strength to avoid conflict.” — Bodhi (Point Break, 1991).

We all know that the market is driven by fear and greed. The biggest influence in trading is emotion. I also experienced fear until now. Every time I place a position in the market, negative thoughts pop up:
“What if the market never hits my TAKE PROFIT?”
“What if the market hits my STOP LOSS first before my TAKE PROFIT price?”
“What if the market is going nowhere / sideways? I have to pay the swap rate”
“What if the market suddenly becomes highly volatile against my position?”
“What if my profit never overcomes my loss? I am wasting my time and effort”
and so on and so forth.

If I listen to all those negative thoughts, I am going nowhere. Not only would I never trade, but I would also never do anything in my life, because there is risk in everything.

Shawn explains this idea here:

Therefore, I need to find the way to manage risks. I do research prior trading with real money, plan my trades, follow my trading rules, and re-evaluate my trades. I also continue to learn from others to improve my trading skills. By doing those steps repeatedly, I reduce my fear and find my own trading style with risks that I feel comfortable to take.

About Vilas Kusumahardja

Originally from Indonesia, Vilas began trading ten years ago to support his love of travel. He figured that, as long as he could find an internet connection, he would be able to support himself. In 2008, he came to the United States and a year later, re-learned everything he thought he knew about forex. Now, he places trades using support and resistance, utilizing signals from EA's. Vilas helps at the Apiary Fund as a trader support representative managing the Apiary Fund blog and answering questions in the forum.

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