One more
EMOTION - IN OUR CONTROL.
Lot size is the key to success . I take a positional trade whose value is only four times my profit .
Let me explain .
Only on making rs 100 as net profit do I buy 400 rs worth of shares . Then again trade with 400 make a profit and keep adding shares to my trades . In this way even if the stock falls by 24 % my capital is safe .
TRADING MYTHS
Until recently, I frequently experienced trading nightmares. Then it all ended. Why?
First, I developed a MACD/CCI based-system; backtested it. And after finding that it has positive expectancy; I then paper-traded it. Initially, during paper trading, I did not strictly stick to my system and this always triggered fear (but no paralyzing nightmares of the past. Noticiing this improvement, I then decided TO ALWAYS STICK TO MY PLAN. And since then it has been fearless trading – losing some, winning some; but in the end finishing the month on a positive note. No fears for me now.
BTW I owe my trading nirvana to a post in TradingQ&A, where the author, who comapred his IQ to that of a dung-beetle; set me on the path to fearless trading.
Regards,
Rakesh
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Fear of failing only impedes you when you are not confident about yourself. This is not only true in case of trading but also in every other aspect of life. For example, if you take an exam without proper preparation you will fear to fail and hence the chance of failure increases. Same goes for trading as well. You need to:
1)Plan the trade and then trade the plan.
2)Trust your trading strategy. Unless and until you are confident that the strategy you follow is profitable and less risky it will keep you on the sidelines.
3) Trade with the capital that won’t affect you financially. That will help you to detach from the emotion of failing and reduce anxiety.
4) Acceptance- You need to accept the fact that there is an underlying risk of loss in every trade.So, accept it and try to minimise your loss with the help of proper risk management technique.
Although these things are easier said than done i believe these aforementioned steps will help you to face your fear and help you to make a better trader.
Good luck.
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i owe my trading nirvana to Mr. Akshay Iyer. here is the link to his amazing post –
Can you share an overview of your trading strategy?.
i could not mention this in my main post as I had just then formatted my laptop and the flie containing this information was on a backup drive, which was not accessible at that time.
Mr. Iyer, never before in my life have I loved trading as much as I do now-- thanks to you.
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Dear Mr rks
Could you share your trading strategies
We beginners could gain some knowledge
Regards
I’ve gone through this very much. The reasons in my case were:
- doing intraday with too much capital (25 lakhs * margin)
- watching the charts every second, etc.
As somebody mentioned in this thread, you need to find out what is causing tension and then you’ve to find a remedy for that.
General tip: Trade less and with less amount, Apply SL and that avoids most of the tension.
Boss, Have 2 bottles Vodka, Fear will vanish, Frankly share market will be afraid of you
hahahahaha, Then who will take care of closing orders and Putting Stop-loss. 
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Trust me, Vodka will take care of every thing
hahahahaha 
Sorry, I dont Drink An alcoholic drink, or alcoholic beverage. 
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What is the biggest fear while trading? Losing money, right? So if you reduce your exposure, you will also reduce your fear. You can bring it down to an extent where you are comfortable. The other half, of being able to reduce your fear of losing money, is having a backup, like second source of income.
Third and final step is practice. Trade trade and trade. This will make you familiar with the market in a way, nothing else will. Start with very small and scale up. Just like falling from your first bicycle ride. Where you fall for a couple of times and then slowly start to ride like a pro.
KNOWLEDGE is the light which drives away darkness of FEAR.
Trade without fear, trade as much as you can.
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How to have Zero fear?
Like I am not hungry… I don’t feel hungry even if you place amazing veg lasagna or pizza… I don’t feel anything. I already ate… Same no matter what freaking TV news channels shows garbage all time I am at peace… I don’t feel anything… I want to laugh on fear
As said, KNOWLEDGE is the light which drives away the darkness of FEAR.
As, you trade more and more, you will learn new things and learn more about trading in the stock market. You will learn what exactly to do and what not to do. With experience you will lose all fear. Just keep trading and gaining more experience.
Just like the bicycle example, you slowly learn, how to pedal, where to look, how to control and maintain balance etc. Slowly, you start riding like a pro. Some learn to ride, with hands free from the bicycle handle. How do they get fearless? just with practice and experience. So that is how.
understand why are you afraid at the first place
Is it lack of a strategy or trying to pull a stunt with positions you can’t chew?
The only way to trade effectively comes with experience which there is no shortcut. Even experienced traders have issues, now and then, as trading is a different game entirely in itself.
A person with lesser experience will have issues even if he has been mouthfed with a best working strategy.
So, the whole point, how to reduce fear, comes with time as you find trading is not a linear game. As you face drawdowns, as you blow accounts, as you test strategies just find it doesn’t work as always the next month, as you thought you ld be able to lay the bread and butter but you are headed towards a negative month.
The question is can you survive at the longer run. Then maybe you can crawl out as a better person and a better trader.
Everything else is just instant gratification.
I am doing that by trading more and more, that way I get more practice and accordingly all is more with me no matter how you put it. Are you agree with me here or not ? I want to hear your opinion. Do let me know. That’s a big topic so haven’t read it all.
This means you are risking too much on one trade.
The risk / trade should be such that it should not bother you if you lose it.
clearly you are not ready to trade in FNO segment.
Also you cannot get rid of fear. to fear is to be human. Are you saying you don’t want to be human.
The problem here is not fear, but risk.