How to overcome fear-based trading phase

I have been trading for less than a year. Since a month, I have developed an appreciation for risk control and money management, and am following those principles religiously.

However, since then, I have also entered a phase where I am just too afraid to enter a trade. I analyze and over-analyze (setup bars, signal bars, trendline crossovers et al.), and then don’t enter feeling that I lost the opportunity. Even if I manage to enter, I’ll chicken out even on a single tick against my direction or quickly exit as soon as I see a minuscule profit.

By and large, I end up doing paper-trading, and make profit on most trades that I ‘might’ have taken. Right now, I feel that I have hit a strategy that is compatible with my personality or makes most sense to me. But the fear is holding me back.

Could someone share some tips and tricks to overcome this fear?

Some things that I have tried:

  • Attempting to step away from my screen after entering a trade and not looking at the charts for 30 minutes at least. Don’t feel that this is a solution, and 2 out of 3 times, I don’t succeed in keeping myself away
  • Trying the aid of liquid courage: have some Vodka and then trade. This, obviously, is not sustainable
  • Take a break from trading for a few days. Doesn’t work - same set of emotions all over again
  • Forget about trading altogether. Simply unable to do it. Weekends are a drag!

fear of losing is more terrifying than the loss … we might feel bad when our positionsa are showing the loss , but after booking the loss we dont feel that bad …

if you are trading in FnO , hedge all the trades for a change …

Stop day trading.

Unable to enter a single trade. You are suggesting that I hedge… erm… Am I missing something?

Have tried hedging in the past with small stops on both trades. Can’t seem to hold onto the trade that is in profit.

Hi @unknownshri,

The first question you got to ask yourself if why are you trading? If the answer is for income generation or developing a new skill or pursuing trading as a career, then probably read ahead but if the real motive is to get the rush of adrenaline then probably you’re at a wrong place. So, be honest with yourself first.

Now, the most obvious solution to your fear is position sizing. You are clearly taking positions way above your risk tolerance and therefore all these emotional issues are surfacing. Why not start with 1/10th of the capital (e.g.1 Lakh if your capital is 10 Lakh) and slowly crank it up when your fear starts coming under control.

Secondly, make it a habit to just look at the charts while trading and NOT look at the P&L. Trading via Pi would help you in this because it’s so easy in Kite to go to the Positions screen and peek at the red/greens. Design your layout in Pi i such a way that you only see the charts and the orders- don’t look at the Positions and you have got yourself a safe and rational way to trade.

Also, for god’s sake, never trade while intoxicated ! You’ll make mistakes that you would regret for a long time. A trader has to manage the natural emotion of fear but not drown it because at the end of the day, fear is your defense mechanism for protecting your capital. Fear is not bad- what’s bad is you letting fear run over your rational mind.

All the best !



Doing it. Like I mentioned, I have developed an appreciation for risk control. Certainly helped significantly, but even with smaller sizes (read: the least possible size), I am scared.

This is an absolute for me now. Just don’t look at P&L until end of day.

Please do share if anything else. I am hoping that something someone will type out here will help me in one way or another. Like what you said, reiterates what I have learnt, and gives me confidence that I am doing something that works.

P.S: Greatly appreciate a detailed response.

How old are you?

I don’t have a good answer for this question.

Am elderly enough to know that it ain’t a good idea to do that.

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I am Telling you this from my Experience.

There was a Time when I went through this phase of Fear too.

You know why I was in fear?

I was not ready to lose even Rs.1/- from my Capital because I was so tight on Budget and I was not financially strong to lose single penny.

So, due to Fear I not traded and Withdrawal back funds into my bank account without doing any trade.

( I have good set of skills of making money in Bear market as well as Bull Market. All I was going through thought of losing money in my mind and To trade & be profitable trader need to be psychologically Active mind. Not full of Different thoughts. )

Over the years of Trading I learned that to make money in stock market A Trader can’t make money without losing money.

And I developed Good Money management over the years all it came by consistent Trading and developing skills.

To overcome my fear of losing I can’t overcome without Trading.
So, Before Entering in any Trade I kept Some amount of funds aside Rs.X that if I will lose this much amount I will close my positions.

Also, I was ready to lose This Rs.X and this Rs.X I am ready to accept this Loss And this Money will not change my life and I will recovered this Very soon.
By this mind set I came out of Fear.


I came across something similar to what you stated. It is by Ashish Arora, i think. To paraphrase: “A single trade will be one of the several hundreds you take along your trading path. So, stop being emotional about every single trade.”

Quite frankly, I can’t recollect a trade I took two days ago unless I check my trading journal or BackOffice of Zerodha.

I came across that quote recently and it is just beginning to sink in.

What you said is very powerful: “this money will not change my life”.

Thanks for sharing.

From what I have read on trading, I have realized that the pain and set of emotions I am going through currently are part and parcel of every serious trader’s life. I was hoping to learn from others’ experiences. Once again, thanks for sharing.

One last thing that I can recommend:

Put a picture of whoever you believe in religiously or spiritually - right in front of your trading terminal. Every morning before you trade, pray for strength and promise that you would do your best. At the end of the day, go back to them and tell if you honestly did what you promised to do.



I doing trade for last few months with low capital, belongs to needy family want to save single rupee, but facing losses & gained experience. at moment, I just need some support or guidance to overcome the bad. your blog truly working good for me. thanks.

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I’ve been trading for more than a year, but I haven’t got rid of my fear yet. Fear is a natural human’s feeling and it sometimes acts as self-defence, so in fact you mustn’t get rid of it.

just one sentence for you brother:


Agree with @Lets_Invest . His idea of accepting loss and position size is very well explained by Mark Douglas in his books disciplined trader and trading in zone.

Problem is if you r in a losing phase u wont even accept a small loss. u may put in a SL but when SL is hit u r in extreme agony because you did not really mean to take that loss and mentally u expected that SL is kept just for safety. This will send u in downward spiral. Overcoming fear is tougher.

So instead of thinking abt getting out of drawdown hole think abt setting aside some more funds for loss for each trade. U hv to really feel as if u r really going to lose X amt per trade. Then probably u will come out of fear slowly with each trade. No quick fixes here.


Don’t want to get rid of it. Just want to control it enough to be able to place orders. Although the problem persists, it ain’t so overpowering as it was when I started the thread.