Nervousness is a by-product of fear.
Fear is experienced by lack of confidence.
Confidence comes w/ experience.
Look internally for confidence, and your fear will dissipate.
That was an interesting test emeraldorc, I happened to get “Strategic Trader” so I’ll look more into what that means and how I can work with it. I will also give Market Wizards a read.
Mihk also seems to be correct with tight SL, I opened it up a few more pips today and managed to make a sizeable profit, which was a bit irresponsible of me because I hadn’t adjusted my Risk/Reward ratio, I’ll probably spend the weekend doing that and looking over some data.
Thanks again for your opinions, I’ll definitely take them to heart as I review my trading plans over the weekend!
Hi ayrtonm,
I just finished reading a free pdf “The Secret to Emotion Free Trading.” It’s an oldie. The science it uses “Psycho-cybernetics” is even older; first published in the 60’s, but already used by many high achievers since then including successful traders. You can download it here.
Its core idea is that the main reason we are what we are is because of our [B]Self Image[/B]. If we see ourselves as a losing trader (consciously or otherwise), no matter how hard we try, that Self Image will make us a losing trader. The author gives solution to common trading psychological challenges, including fear of trading, etc.
I’m planning to practice it and see how it will improve my own psyche.
Cheers…
:57::44:
Apparently you are a natural according to Dr Van Tharp’s Super Trader book. Some of the best traders and strategic and you need the least effort to be a good trader and make money. I am an independent trader, so I fall into one of the 8 trader types that are likely to do well in this game, there are others but Dr Van Tharp thinks if you are not in the main 8 you will struggle, so stick to the day job. Well 4 years on I believe him. Hence all should take this test.
8 types?? I think it is too much to break fear and confidence into 8 groups. You can keep yourself from entering or let it go. That’s it
Unfortunately this is a very usual problem for lots of traders. I recommend you read some training posts about psycology and how to control yourself.
Online Trading Academy have some good resources regarding to psychology. Let me know if you need further information.
I certainly won’t argue with the psychologist that coached Tom Basso, Ed Seykota and Jack D schwager to mention just a few a man that dedicated his life to studying trader psychology and turn poor performing traders to stellar performers.
If he says 8, I believe him. I already fit into one. Read Super Traders to get more perspective on the discussion.
Your question and your request for opinions reminded me of a quote by the famous trader named Jesse Livermore, an American trader from the early part of the 20th century, also known the “[I]Great Bear of Wall Street[/I]”.
His common sense statement is very good advice to remember…
[B]“Markets are never wrong – opinions often are.”[/B]
If you nervous about trading, you trading too big. Lower the lot size till its not an issue. When you have a few trades that meet your criteria, these will become your favorite trade types. With the confidence of experience trading your favorite setups you will increase the size, and not change the way you trade those setups.
Thanks for the advice everyone, I really countered this problem by not screen watching the charts constantly and using a proper risk/reward ratio in comparison with my capital.
I think that there should be some nerves on the line when trading…after all you’re risking real money!
However, as you mentioned, nerves while natural should always be mechanically controlled by proper trade management. When we trade properly we leave the nerves where they should be: a symptom of trading rather than a cause for trading.
I find the [B]Krav Maga’s acupressure technique[/B] explained in this article to be:
- Really simple & fast to do (20 seconds); and
- Really fast to feel its calming effect (10 seconds).
I highly recommended it! Just be prepared to be amazed like I was. :57:
Good job, keep it up!
I took the test. I got result Administrative Trader … What does it mean ? positive or negative ?
I think that it is good stage sir…
It means that you are detail and full of calculation before making option…
As Kenny Rogers says, you gotta know when to hold 'em, know when to fold 'em, know when to walk away, and know when to run. Wise words, and very applicable to the forex world. Knowing what to do and when to do it will come with experience. You have to give yourself time to develop a feel for how certain pairs react. Time will also make you a more patient and disciplined trader.
Above all else, don’t trade real money until you can trade like Kenny could gamble. A demo account is your best friend. When you’ve doubled your demo account three times over, you’re ready for real money.
Also, check out this thread (if you haven’t already): 301 Moved Permanently
Lots of good stuff there to help improve your trading and get those stop losses under control.
Some times I experience this emotion in my trading activity. I experience it when I will open my position. I do not understand, because I have made a good analysis and it seems to lose in this position? Clearly, nervous in trading forex should be avoided.
If you feel cool while entering or gwetting out, it means you are doing something wrong.