Fear & Greed – Larry Williams
For many traders greed is a stronger emotional force than fear. Greed, as I have come to understand it causes us to do that which we should not! It is greed that is the active force, kicking us in, causing us to jump the gun, to hold on too long, to buy too much.
Fear is different. Our fears cause us to not do what we should do. Fear is prohibitive - it puts on the brakes. It is preventive and it is very primal as it is more closely connected to survival. Indeed, we need a healthy dose of fear to keep on living. But life, or event fear, is not the same as market fear.
For some unexplainable reason, we pass on the best or largest winning trades out of pure adrenaline spouting fear. We don't place stops for fear we will be stopped out. My advice is when your fear emotions tell you to not do something, in this business, as Nike says, "Just Do IT!”
Scary thought – but that is why top traders are successful. They do just do it.
There are two important parts to fear; the first is why it happens, the second is what it makes you do.
Fear is the product of unknowing. A seal team buddy of mine said it best, "Whenever we went on a mission my heart was pumping but it was not from fear. We were so well trained and armed that every unknown was known. We knew what to do and how to react to any contingency".
Traders are not so well prepared. They have not thought out the future, they trade with no stops (protection) and trade with no idea of where or how to take profits. Hence all of the future is unknown. It's a black hole and they are afraid of the night.
To shut down on your fears prepare for the future, and have all bases covered and you will have to be able to act, not react to market events.
For many traders greed is a stronger emotional force than fear. Greed, as I have come to understand it causes us to do that which we should not! It is greed that is the active force, kicking us in, causing us to jump the gun, to hold on too long, to buy too much.
Fear is different. Our fears cause us to not do what we should do. Fear is prohibitive - it puts on the brakes. It is preventive and it is very primal as it is more closely connected to survival. Indeed, we need a healthy dose of fear to keep on living. But life, or event fear, is not the same as market fear.
For some unexplainable reason, we pass on the best or largest winning trades out of pure adrenaline spouting fear. We don't place stops for fear we will be stopped out. My advice is when your fear emotions tell you to not do something, in this business, as Nike says, "Just Do IT!”
Scary thought – but that is why top traders are successful. They do just do it.
There are two important parts to fear; the first is why it happens, the second is what it makes you do.
Fear is the product of unknowing. A seal team buddy of mine said it best, "Whenever we went on a mission my heart was pumping but it was not from fear. We were so well trained and armed that every unknown was known. We knew what to do and how to react to any contingency".
Traders are not so well prepared. They have not thought out the future, they trade with no stops (protection) and trade with no idea of where or how to take profits. Hence all of the future is unknown. It's a black hole and they are afraid of the night.
To shut down on your fears prepare for the future, and have all bases covered and you will have to be able to act, not react to market events.
