Do you worry? Do you wake up in the middle of the night sweating? Does fear control you? Does it stop you from making money as a trader?
Are your fears controlling you?
One of the best ways to control fear is to confront it. We are only afraid of the unknown. So one technique for conquering fear is to look it in the face.
#1. You’ll Die
OK, just joking. I’ve never seen a medical examiner declare a person dead through an overdose of trading!
But I’m putting it in this list to make the point that the most awful thing that can happen to you won’t happen because of trading. So relax.
#2. You will lose a lot of money
Of course this can happen. Many people lose lots of money trading. Why? Usually because they don’t have a system, don’t follow the system, and/or don’t have good risk management.
Now stop and think about it. How much can you lose? Let’s say you put in $10,000 into an account. Theoretically, you could lose all of that and more. Realistically you could lose all the money in the account.
How do you feel about that? How do you feel about losing $10,000? No, really get into the feeling of what it would be like to lose that money. You worked hard for it. You’ll never see it again.
Remember that you should never trade with money you can’t afford to lose so your financial situation should not be dire if you lose the money.
#3 You will be lonely
In the final analysis, trading is a solitary profession. You are the only one who make the final decision of your trades. Yes, you can talk to other traders but this is not like a regular job where you get to chat with others around the water cooler.
You may start talking to yourself and wandering around the house in PJs. You’ll get fat from raiding the refrigerator all day.
#4 People will shun you
Similar to the one above, people won’t really understand you. What do you do for a living. I’m a trader. And then watch their face. Most will look confused but a few will be interested. Most won’t know what to do with you because being a trader doesn’t fit into their reality.
In fact, even your family and friends may not really like that you are a trader. They won’t understand it. My parents thought I was a stock broker for my whole career because that was the only thing they could relate to. I don’t think either of my two wives really knew what I did for a living.
#5 You’ll succeed
Keith Cunningham says that hell is meeting the person you could have been.
Many people don’t really want to succeed. They find ways to sabotage themselves. They find excuses for their failure.
Success means that you have to take responsibility for your situation and many people don’t want that responsibility. It’s scary. There is nothing to hang onto.
The Bottom Line
I know this is kind of a bummer. I get that.
But I believe that trading is very easy if we let it be easy. But few people allow it to be easy.
My favorite book on the psychology of trading is Mark Douglas’ The Discipline Trader. You can get it here.
We offer a very inexpensive course called the Psychology of Massive Wealth which I recommend that everybody get. Here is a free video training about how you can have a Psychology of Massive Wealth.
Finally, you might want to become a trader in spite of this essay! If you do, this free video training is a good place to start.
You can watch if free by clicking here.