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.