How To Remove Doubts, Uncertainty And Fear In Trading

Sergeant Posts : 184 Join date : 2022-06-08

How to Manage the Uncertainty in Trading - 5 ways to manage the uncertainty and risks of trading. First of all, what is the uncertainty of trading - how do you deal with the mental aspect of not knowing whether the next trade is going to be a winner the next day, the next week, the next month..etc? Unlike many other careers or jobs where you know that if you follow a process the outcome is known - in trading it doesn't work like that - you can do all the research you want and have the best strategy in the world before entering a trade yet you might still end up losing money. Many people can't deal with that uncertainty. 1) Manage and Accept the Risk. This is what you're prepared to pay to play this 'trade' - that way your mind will re frame and help you manage the trade better. 2) Focus on the process not the trade - once you crack this it will really help you focus better - eliminate distractions like flashing running profits or losses or minutely charts. 3) Recognize your edge. You make money in trading by having a statistically positive edge that over time is going to make money for you. Now that can be anything. 4) Never put too much weight on any one trade. That is both financial terms and emotional terms. 5) Stop thinking in terms of win/lose.: