Sometimes the fear is the brains way of telling us that danger is around the corner. And if we dont obey then there will be pain to confirm that we are on the wrong path.
It can also be a way of telling you that the approach you are using - although profitable - is not something that you are truly comfortable with. It does not fit your temperament/personality/goals for trading.
Here are some possibilities
- Maybe if you are a Day Trader, the fast movements are too much and dont give you enough time to recover emotionally/psychologically. So perhaps Swing Trading which gives you more time in between trades to recover is better suited for you.
This is why I switched to Swing Trading. As you can see from my recent results …there is enough time in between trades to calmly choose the next one…especially after losses…
The graph here shows it a little better…
On average (if I dont miss an opportunity) my trades are 1 time a week. 2 Days Holding Period and then 2 days to assess and recover then a day or 2 to identify and prepare for the next trade.
- Maybe you are not that confident about your strategy because maybe your strategy has a few missing elements.
It can be like football. If you are up by 2 goals and then concede one…if you have a better strategy than the opponent which led to those 2 goals - and it wasnt by luck - you should be able to maintwin or build on your lead.
But if it was not built on a good strategy then you are likely to panic and worry and 2nd guess yourself. Maybe this is what you felt when experienced that loss(es)…a feeling that is more present trading Live.
After experienciing a setback…it is expected that you will feel a little unsure. But you should be able to shrug it off and that fear should be replaced by confidence in a strategy that will work most of the time.
Live Trading has a way of bringing out issues that do not arise in Demo.