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Scared Traders Don't Make Money

  • #1
  • First Post: May 5, 2020 11:13am May 5, 2020 11:13am
Wanted to share how having the proper mind ultimately determines your success. What changed for me in my trading wasn't my system, wasn't my time frame, it was my mind... that's when I started to do well day in and day out.

You have a system.. you have an idea.. have proper money management?

None of it matters without the proper mindset.

The minute you hesitate, second guess, get scared you've already lost. You need to enter every trade "knowing" your going to win... no excuses.

If you over-analyze, second guess, over-think, do the, "what if" have one hint of a doubt

How many times have you been in a position your system called for, but you can't handle watching price jump up and down in a live account? So you close early and the position runs to your TP. ( I have more than I can count in the past) You're not ready to trade until you can watch a 5k, 10k 100k live account ping pong around and laugh at it and think nothing of it. Or go into floating drawdown and not get weak hands, sweaty hands or make irrational decisions based on your floating equity.

Scared traders have a defensive mindset. Winning traders think about how they are going to drive down the field and score the next touchdown. If you're afraid to lose money, just quit now. If you feel like you're going to throw up after you blow your first $500 account... stop now. The #1 ranked defensive in the NFL is nothing w/o an offense... don't trade like your the #1 ranked defense. Trade with conviction, trade with fortitude, trade like your the most bad!@@ mofo in town. Be cocky, be confident and just know your going to whip some tail.

Everyday your going to battle with yourself. I wake up for the london session knowing I am going to war... knowing that that my inner self is there on the other side trying to spook me and wants me to lose. Have some drawdown, get stronger and know your going to win the next trade, have 5 losing trades in a row? Run that pay dirt b/c you know how much make for every yard ran.

This is the truth - be a winner, expect to win, always win. This is what your mindset needs to be... even if you are losing.
  • #2
  • May 6, 2020 12:04am May 6, 2020 12:04am
SIMPLY LOVE THE SUMMARY ! ! ! !

What You have summed up is every single trader's BIGGEST NIGHTMARE ,,,
UNTIL ,,, they can master their own mindset ! ! !

Thank you for sharing your wisdom ,,,,

Cheers
George
LOVE YOUR GAME WITH A PASSION ,,,,, WORK WITH A VISION ! ! ! ! !
  • #3
  • May 6, 2020 2:03am May 6, 2020 2:03am
Quoting sp33dr4ge
Wanted to share how having the proper mind ultimately determines your success. What changed for me in my trading wasn't my system, wasn't my time frame, it was my mind... that's when I started to do well day in and day out. You have a system.. you have an idea.. have proper money management? None of it matters without the proper mindset. The minute you hesitate, second guess, get scared you've already lost. You need to enter every trade "knowing" your going to win... no excuses. If you over-analyze, second guess, over-think, do the, "what if" have...
patience, patience, patience and after that more patience
  • #4
  • May 6, 2020 4:00am May 6, 2020 4:00am
For being a successful trader one quality required is not having FEAR TO FAIL. If he has fear then he will never overcome his mistake and will not learn from it so it's important for him to have an learning and confidence attitude
  • #5
  • May 6, 2020 5:33am May 6, 2020 5:33am
Pull the trigger based on your trading plan and accept the results in good faith.
Dust and repeat the process time to time
  • #6
  • May 6, 2020 5:38am May 6, 2020 5:38am
I admit, I am a scared trader. Despite knowing, entry and exit point, trends. I am scared to pull the trigger.
  • #7
  • Edited 9:05am May 6, 2020 6:46am | Edited 9:05am
Hi Guys,

This is a great topic and thanks for sharing Sp33dr4ge. A topic I can also relate with.
Fear is probably the biggest stumbling block all traders face at the beginning and going further into their trading journey. Trading is not a get rich quick scheme. If I look back at my earlier trading endeavors, I felt pressure to show my wife, family and friends that I could make a living out of trading. I traded big lot sizes totally out of proportion. I just did not get it. I had this fear of losing all the time and could not eat or sleep knowing I had losses, and had to make up serious ground to recover my losses. My trade decisions became irrational and I felt like I was falling into a bottomless pit. My fingers were shaking every time I pulled the trigger, simply put I was scared of trading. I just was not getting it. It was when I lost my first deposit that I realized that I was struggling with forex trading. I took time out for a couple of weeks looking at all strategies under the sun and found what I thought was the holy grail. I funded my account again and traded with my big lot sizes, I had a lot of money to make up. I still had this fear, and even more so this time around. Fear of failing, fear of disappointing my loved ones. I just did not get it. I soon lost my deposit the 2nd time round.

This happened 3 more times and I was at the point of giving up. I had already lost $30 000. My wife, family and friends were at wits end with me. They eventually persuaded me to give up trading after 5 years. I was a total failure and a loser. I did not trade for a year, but still kept my eyes on the market. One day I came across a thread with a guy by the name of Nanningbob. You will still find him here on forex factory. He kept on emphasizing the words "Trade to trade another day". Trade small in relation to your account size. It was then that I told my wife that I wanted to go into hobby trading. She agreed, after all it was small money that I was funding my account with. I opened my first .01c trade and my fear was gone. There was no more pressure. Trading became fun. I was able to strategize and cleverly open trades. Losers became winners and as my account grew my confidence grew. Closing losers was nothing. I was sleeping well. I was laughing and joking again with my family. I eventually made up my 30K in losses a couple of years ago. And yes, I trade full time now.

Have I become rich, absolutely no. I do have a stable source of income and can do this hopefully into my eighties.

Remember one thing. Money makes money. Trying to make fast money with a small account, will drive you into a bottom less pit. Fear will be the winner.

From the school of hard knocks.
Cheers.
Trade to trade another day
  • #8
  • May 6, 2020 8:35am May 6, 2020 8:35am
Quoting sp33dr4ge
Wanted to share how having the proper mind ultimately determines your success. What changed for me in my trading wasn't my system, wasn't my time frame, it was my mind... that's when I started to do well day in and day out. You have a system.. you have an idea.. have proper money management? None of it matters without the proper mindset. The minute you hesitate, second guess, get scared you've already lost. You need to enter every trade "knowing" your going to win... no excuses. If you over-analyze, second guess, over-think, do the, "what if" have...
Preach!
Mind management more important than money management
Ecclesiastes 1:9
  • #9
  • May 6, 2020 10:31am May 6, 2020 10:31am
Quoting Wavegarrick
Hi Guys, This is a great topic and thanks for sharing Sp33dr4ge. A topic I can also relate with. Fear is probably the biggest stumbling block all traders face at the beginning and going further into their trading journey. Trading is not a get rich quick scheme. If I look back at my earlier trading endeavors, I felt pressure to show my wife, family and friends that I could make a living out of trading. I traded big.... Cheers.
how long have you been trading?
  • #10
  • May 6, 2020 11:47am May 6, 2020 11:47am
Quoting pipnayntez
{quote} how long have you been trading?
For 14 years. Cheers.
Trade to trade another day
  • #11
  • Edited 12:11pm May 6, 2020 11:55am | Edited 12:11pm
Since this is a cowboy thread, let the man himself give you a few words of advice.
Attached Image (click to enlarge)
Click to Enlarge Name: Cowboy says.jpg Size: 101 KB
  • #12
  • Edited 1:30pm May 6, 2020 12:52pm | Edited 1:30pm
fear leaves us alive ...

keeps the account alive too.
it is clear that fear is not activated only if you have a system that makes you winner.

in this market I am very cautious and always doubt everything to make a wise decision in a business.

people have to have a balance between fear and courage.
  • #13
  • May 6, 2020 1:12pm May 6, 2020 1:12pm
Quoting newbegger
{quote} Preach! Mind management more important than money management
transcending psychology matters the most to me.
  • #14
  • May 6, 2020 1:15pm May 6, 2020 1:15pm
Quoting sp33dr4ge
Wanted to share how having the proper mind ultimately determines your success. What changed for me in my trading wasn't my system, wasn't my time frame, it was my mind... that's when I started to do well day in and day out. You have a system.. you have an idea.. have proper money management? None of it matters without the proper mindset. The minute you hesitate, second guess, get scared you've already lost. You need to enter every trade "knowing" your going to win... no excuses. If you over-analyze, second guess, over-think, do the, "what if" have...
Quoting Wavegarrick
Hi Guys, This is a great topic and thanks for sharing Sp33dr4ge. A topic I can also relate with. Fear is probably the biggest stumbling block all traders face at the beginning and going further into their trading journey. Trading is not a get rich quick scheme. If I look back at my earlier trading endeavors, I felt pressure to show my wife, family and friends that I could make a living out of trading. I traded big lot sizes totally out of proportion.
sp33dr4ge & Wavegarrick
Thank you for sharing your thoughts. There is valuable information here.

My thoughts do slightly differ about how "You need to enter every trade "knowing" your going to win... no excuses."
If you have a profitable strategy, trading plan, or any sort of edge, it is important to truly understand it. You do not have to "expect" or "know" that every trade will win. Having confidence in your trades is good, but for me, it is more important to know all the details of your strategy (winning percentage/largest potential drawdown/potential returns etc.). This way, you can accept that there will be losses. You can accept the drawdown. By accepting that you will have losses and drawdown, you can remove or reduce your fear.

Maybe I haven't removed my fears in trading entirely, but I have reduced it to the point where it does not prevent me from pulling the trigger. This is because I know my edge in detail and I am willing to accept my losses.

If you have a well-thought-out strategy/idea along with proper risk management, it is much easier to have the proper mindset. Many people are mistaken that they only lack the proper mindset, when in reality, they do not have a detailed trading strategy or they lack risk management. A proper mindset will not matter if you do not stick to your edge, and a lack of risk management will make you more likely to deviate from your edge. It is all closely tied together.

Even with a well-tested profitable strategy/trading plan, people make the mistake of trading too big. This causes so much emotional and psychological stress that you are more prone to deviating from your plan and making dumb mistakes. I obviously made the same mistakes in the past. People tend to overestimate the amount of drawdown they can handle. For instance, one would think they can accept a 20% drawdown, but once it actually happens, they would not accept it, make dumb mistakes, and revenge trade etc.

It is crucial to understand how lowering your risk benefits your trading psychology. If you stressed out about being negative 50 pips before, try cutting your risk in half. That gives you 50 more pips until you feel that amount of stress again. It does not mean you need to take that 100-pip loss. That is not the point. The point is that it can help your emotions significantly. It helps you prevent dumb mistakes such as revenge trading. It helps you remove fear in entering trades.


Have a well-thought-out plan, stick to your plan, and manage your risk.
It won't be easy, but if you achieve these three, the rest comes quite naturally.


FYI, some of you may look at my trade explorer and say risking 3% per trade is too much. I am aware of this and I agree 100%. I believe even 2% per trade is a lot. I am only doing this because it is a small account and I know my edge in detail. I trade the exact same way with much lower risk in other accounts.
  • #15
  • May 6, 2020 2:07pm May 6, 2020 2:07pm
In plain English, find the amount per trade which won't affect your mind. Be it 0.1% per trade, if you are comfortable that's it. Fear comes in only when that losing or DD amount exceeds your comfort zone.

For me,
I know my edge to the finest detail.
I plan my trade exits before entries.
I execute every trade that fits my entry criteria using the MM planned well ahead.
Law of large numbers always plays.
Single Or multiple losing trade outcome doesn't matter, because the amount is within the comfort zone.
Once I am in i have no control over the market but my trade.
A pip profit banked is a pip profit realized in my wallet.
I aim for optimum profit not the maximum.

So ask yourself are you comfortable with your Losses & DD. If you are then you are fearless in trading & if you are not take a step back, now you know what to do!

Best Regards.
How big can you think!
  • #16
  • Last Post: May 8, 2020 8:40am May 8, 2020 8:40am
Quoting sp33dr4ge
..........This is the truth - be a winner, expect to win, always win. This is what your mindset needs to be... even if you are losing.
So true! Not only in trading. You can do anything you set your mind to.
You'll get what you give.
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