Thread by @ichimokudoc

Teaching Moment 🤓

How to Overcome the 4 Fears of Trading

What are the 4 fears?

- Fear of loss
- Fear of missing out (FOMO)
- Fear of letting a profit turn into a loss
- Feat of being wrong

We must commit to the Fundamental 5 Truths of Trading:

1. Anything can happen.

2. You don’t need to know what is going to happen next to make money.

3. There is a random distribution between wins & losses for any given set of variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing happening over another.

5. Every moment in the market is unique.

We must resolve to the 7 Principles of Consistency:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I never violate these principles of success

Ultimately, we must have a STRONG desire or desperation for change—“I’ll do anything”. We must change the way that we think & switch from a trade by trade to a series of trades perspective. This is how we take the fear out of trading.

- Mark Douglas - Trading in the Zone