Overcoming Fear

There are three foes you must overcome in order to become an adequate trader.

The first foe is fear. If a trader runs away out of fear and avoids trading, nothing will happen except that he will never learn.

Fear causes your logic to become fuzzy and unclear. Lack of clarity becomes the second foe you have to overcome. Clearness of mind about the trading process removes fears. If you yield to the power of fear, you will have succumbed to a lack of clarity.

In trading what can get you into trouble are not the eventualities you took into account, but rather the variables you never thought to question. You must see clearly and use it only to trade what you see, and wait patiently and measure carefully before entering and following a trade.

If you can learn to see clearly you will possesses power. However, power wrongly used is the third foe you have to overcome. Power improperly deployed can destroy you. You must keep everything under control and know how to use power. Power in trading means understanding the markets and how they work. If you do not possess such understanding, power can come and go. If you have such power, it should be used only when it feels right.