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


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

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Market Wizard
Boca Raton
 
Trading Experience: Advanced
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@johny1971

I am not a psychologist or a psychiatrist. But, reading your comments, it seems to me that you fear is not the loss, but it is ego. Let me try and weigh in, and I hope this helps you.

The minute we are in a trade, there is nothing we can do that is in our control. This is what you have to convey to yourself, and the outcome of the trade is not in your control either. That's right, the minute you are in a trade, the market has to do what it has to do. If you have a good methodology, and risk management in place, you have an advantage over others, but in every single trade you are part of a larger cosmos of things that are happening. There could be a huge fund who came and bought, a hedger who liquidated, large specs that changed direction with thousands of contracts, and so on.

Sadly, and I mean in a practical and pragmatic manner, every time someone who had an "issue" here, it's the same old song "go back to paper trading". Paper trading is good to learn software, order execution, test new strategies but it not a vehicle to overcome deep psychological issues.

In the end, your conclusion to just "live with it", it is the right one. You will have many bad and losing trades. But, it's the losing trades that will be your insight and guide to your risk management, skills. and self-improvement. I just suggest that in the beginning decide on a frequency that is low, let's say one a day. A schedule would allow you to possibly revise the systems/methods you have in place.

Good luck.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
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