How does one deal with FOE (Fear of Entry)? | Psychology and Money Management


futures.io - futures trading strategies, market news, trading charts and platforms


Psychology and Money Management


This forum is where successful traders spend most of their time and where struggling traders never visit. The psychology and money management forum is where you learn to become a profitable day trader




 

How does one deal with FOE (Fear of Entry)?

  #4 (permalink)

Stuttgart, Germany
 
 
Posts: 10 since Mar 2019
Thanks: 17 given, 22 received

Go back to paper trading. I am experiencing the same as you do. What we are missing is experience. A lack of experience leads to self-doubt which is subconciously holding us back. And I am not even talking about trading - you need experience in any field you want to become good at. It is like driving a car, at first you are overly cautious about every possible aspect of the process, after a few months and years of driving a car it has become a second nature to you and you don't even think about it anymore, you just do it.

To gain experience you need: Repetition.

You may have read every single book about learning the guitar, you may have watched every instructional video under the sun about how to play the guitar and yet here we sit, holding the guitar in our hands, clueless about where to start. Theoretically, you know how to play every riff, you know when you ought to do this and that, but you never have. The only way to become a rockstar guitarist is by actually starting to play the guitar.

Now with trading the good thing is, you do not have to blow out your entire account learning "to play". That's what SIM trading is for.

Just go this one step back and apply whatever your strategy is, whatever you have learned to a SIM account first. I was in your shoes. I was sitting there, thinking that I would HAVE to learn trading in a live account, because there are no emotions involved trading a SIM. And that is 100% correct. But believe me, actually making the trades based on your strategy and rules in a SIM account is worth a thousand times more than sitting in front of your screen day in day out only THINKING about doing this or that trade but being so trigger shy, so full of fear of losing your cold hard cash, simply because you - no we - have 0 experience.

Funnily enough, when I went back to my SIM account, the first 2 or 3 days I was just as trigger shy as I was in my live account. Now I am making trades and I am even making cold hard monopoly money. I am not there yet, I am still not taking all the trades I know I should (in a SIM ).

Just give it a try - what more can you lose than the time you are already losing staring at your screen doing nothing?

Repetition. Repetition. Repetition.

Reply With Quote
The following 10 users say Thank You to MessageOfTheTape for this post: