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Overcoming fear

  
  Education
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 I recently read a few simple quotes on overcoming fear that I wanted to share:

“I have not ceased being fearful, but I have ceased to let fear control me.” — Erica Jong

“Your fears are not walls, but hurdles. Courage is not the absence of fear, but the conquering of it.” — Dan Millman

“The key to success is for you to make a habit throughout your life of doing the things you fear.” — Brian Tracy

Important Qualifications for a Successful Trader

  
  Education
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QUALIFICATION


I believe that one of the most important qualifications for a successful trader is “POISE”, which to me is defined as stability, a well balanced person with dignity of manner – as it relates to the stock market.A poised person is a person who can handle their hopes and their fears in a calm manner.The other qualification is “PATIENCE” to wait for the opportune time, when as many factors as possible are positioned in the traders favor.Poise and patience are the close friends of successful traders.The final qualification is “SILENT”. Keep your own silent counsel – keep your victories and your failures to yourself – learn from them both.Poise, patience and silence are attributes that must be cultivated.These virtues do not come automatically to the stock market trader.

FEAR

  
  Education
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Fear is not always a bad thing, though. In fact, for traders, feeling fear is not a problem, as long as they don’t panic and allow it to drive them out of or in to trades.

Among the fears traders face:

  • Not making enough money in these huge market moves
  • Missing out on big trades
  • Getting caught on the wrong side

At times like this, top traders see opportunity when others crawl into a hole because they are frozen by their fears.

Traders who keep their cool make money from the fear (i.e. shorting oil). Others keep their head and cut positions so they don’t get blown up (Greece and the ripple effect). Still others are waiting patiently for the moment to strike, like a sniper.

So how can all traders think like the top traders when it comes to fear?

  • Lay out the data and look at it from an objective point of view.
  • Pay attention to where the disconnects are because others are trading based on fear.
  • Keep positions smaller with wider stops; be ready to get bigger quickly the moment the uncertainty starts clears up, which it always does.

You Might be a Trend Following Trader if…..

  
  Education
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Trend Follower“Trend  followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel/ Trend Following

You Might be a Trend Following Trader if…..

  1. …you love buying break outs above resistance and new all time highs.
  2. …big trends make you happy not angry.
  3. …you do not trade the concept of something being overbought you just use a trailing stop.
  4. …your trading decisions are based on what is happening now, not your opinions, your fears of what will happen, or your hopes of what will happen later.
  5. …you risk a little capital over and over again to make a lot of capital eventually.
  6. …you are great at letting your winners run.
  7. …trend followers don’t need a story they follow actual price action.
  8. …you look for longs in a bull market and shorts in a bear market you are likely a trend follower.
  9. …higher highs and higher lows are one of your best indicators to go long.
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