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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Somewhere, Delawhere, USA
 
Trading Experience: Intermediate
Platform: TradeStation,Sierra Chart
Broker/Data: Tradestation Securities
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Posts: 257 since Feb 2017
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My take on fear and regret


johny1971 View Post
Has anyone else dealt with the fear of entering trades and experience the following ruminations? If so, how did you remove that fear?

Seriously, the way I deal with fear of entry is through automation. Even when I know instinctively that an entry may be 'bad', I let the system take it if the rules are in place. I use the system because my instinct is influenced by my beliefs, background, etc. In other words, my instinct is flawed.

I know some people will meditate or mentally rehearse how they will trade. I don't exactly meditate in a true sense, but I do mentally rehearse what I'm going to do. I know meditation works and so does mental rehearsal.

If my machine makes a mistake, it is because of a data issue, connection issue, volatility issue, or I have an error in my code. When something doesn't work, as happened yesterday (see: $400 Lesson and a New Couch, I just assess the problem and try not to repeat.

My partner keeps a little sticker on one of her monitors. It is simply a date to remind her. The date she didn't place a stop loss. I think you can imagine the rest.

If you practice enough, you eventually become numb to the fear of loss. It doesn't mean that I don't get angry or annoyed when a trade goes bad ("my stops/exit suck", "the amateurs are ruining everything", "the president's tweet cost me $nnn", "blah blah blah"). We are only 33% successful in our trading, but still profitable. We have endured losing streaks of 10+ trades, but have kept trading because we know our systems work over the long run (and good money management). It is a matter of accepting loss it as part of the process and working through the fear. Because the trade you don't take because of fear is the trade that makes your month/year.

I hope this helps.

~vmodus

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