Trader psychology tools to overcome Fear

[New Year]

From my archives, a good article about Fear, maybe you can use it to overcame the FEAR of losing......

Trader psychology tools to overcome Fear.

I was in this boat of FEAR for quite a long time but once I made a few changes to my strategy and my mentality things began to improve.

From a strategy perspective:

1) I switched from doing counter trend trades to only trading with the major/dominant (ie Higher Timeframe) trend
2) I moved my take profit from 1X to 3X
3) I started buying the pullbacks instead of waiting for the breakout

These 3 changes moved me into positive expectancy. But I still had a fear of pulling the trigger.

So I sat down and developed my own Psychological Tool/Matrix that I call FEAR OF POSSIBLE OUTCOMES. Basically, in order to eliminate MY fears I had to identify them first.

In the end there are only 4 things that are going to happen when you, me or anyone enters a trade:

1) POP – You enter and the trade pops and moves in your favor (great outcome 3x)
2) SOFT Pull Back – You enter and the trade does a soft pullback but does not take out your stop (also a great outcome 3x)
3) HARD Pull Back – You enter and the trade does a hard pullback and takes out your stop (more frustrating than bad – but here you just get back in. I call this my Keep Swinging Strategy. I wasn’t wrong I just got to the party little early. LOL)
4) REVERSAL – You enter and the trade does a trend reversal and takes out your stop (here you are frustrated – but glad that your stop worked and got you out of a bad trade)

So, I just developed contingencies for #3 and #4 and now my fear is gone.

Now I know that when I get in:

a) Higher Timeframe momentum is on my side and
b) if I win its at a 3X R:R and
c) if I lose I just get back in.

Now, it’s simple. Now I feel like I have some level of control. Finally, after many years of practice I feel like I’m RUNNING A BUSINESS.

I know this may sound silly to you but understanding the POSSIBLE OUTCOMES has really helped me develop an unemotional perspective on the markets and has greatly improved mind set.

Thanks for all your hard work.

All the best,
--------------------------------------
New Year

[livinlifetoday]

Thank you for your input. Reps given.

[sunnyillion]

Thanks for the advice @New Year.
Couldn't agree more especially with the "pull-back" method.
For the sake for newbie traders I would suggest you can create a PDF detailing all the steps involved. Better yet if you can make a video explaining the steps.
But then again, a simple search in youtube would suffice too.

[faris21513]

Guys I been screaming all day long, if you're looking forward for an edge, check out Chris Lori stuff.
Again, I'm no affiliate at all, infact I got his stuff for free. You can get it here, but it's kinda outdated but some of the old concept still work like forever.
I been in profit since last year. Live account and real money, no BS. Hope this year doing the same!

Like any regular guy, I refused to believe in price. And yes you should too, as majority of courses available on the market regarding price are crap. They're teaching crap! They making money by teaching, not trading. Chris stuffs' really open my eyes. Let me give you an example, just in support and resistance alone, I relearn it from his price delivery stands point!
Would you image that? Lol

Either take my advise or keep struggling with your next holy grail system, haha...
Good luck

[macieman]

Great Share, appreciate you guys sharing your experience.
Any clue where can i download on Chris Lori.
@faris21513 Can you please share the Chris Lori content if you can.

Thanks

[faris21513]

(01-03-2019 01:18 PM)macieman Wrote:  Great Share, appreciate you guys sharing your experience.
Any clue where can i download on Chris Lori.
@faris21513 Can you please share the Chris Lori content if you can.

Thanks

There is one in BBHF, but, it's outdated except for few.
His content has evolved, whose really give his students an edge.
Just check out youtube on Chris Lori, see his stuff about price behaviours.
You will see the content differences instantly.

[Easy-Read]

(01-02-2019 03:46 AM)New Year Wrote:  2) I moved my take profit from 1X to 3X

Do you think this is through extending the profit target to 3X or having the Stop Loss set to 1/3 of what it would be previous?

Thanks for any input