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Ric,
This all goes back to when you were a toddler. Ok now, lean back and
relax.
Do you remember that time when Mom wouldn't let you have that extra cookie?
Uhu, so now you are punishing yourself by trying to repair your damaged
self-worth by playing psychiatrist to psychologically damaged traders who
also didn't get that extra cookie from Mom.
Oh sorry, your session is up. Please see the receptionist on the way out.
Shrinkingly,
Dr. Norm
----- Original Message -----
From: "ric ingram" <ringram@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, March 05, 2002 11:22 AM
Subject: [RT] Fear for Traders
> Hi,
>
> The impacts of fear on a trader often include:
>
> - emotional wear and tear - a draining of energy,
> - temporary loss of data acquisition/interpretation capability.
>
> The first impact is a high price to pay - the value of any profits are
> offset maybe in part by the energy loss, any losses are made worse by the
> energy drain. In practice, for reasons described below, profits are
> likely to be lower anyway when fear is present.
>
> The second impact is more interesting because it can more readily provide
a
> motive to get past fear especially if there is a practical path we can
follow.
>
> We typically gain experience by using a learning process that uses
> something like the following steps:
>
> - accepting/interpreting data from the environment,
> - sorting, collating the data into information,
> - recognising patterns in the data,
> - converting to theoretical knowledge (often in the form of prediction),
> - testing our theoretical knowledge on the anvil of practical application.
>
> (An insight is often a jumping over two or more of these or similar
stages.)
>
> Since fear cuts off the base building blocks - the ability to accept
and/or
> interpret some data from the environment, it must adversely impact our
> learning process and thus reduce our knowledge and experience.
>
> So to learn more effectively as a trader we must get past fear.
>
> This is difficult to do when fear is invoked, but can be managed quite
> effectively, slowly and steadily, when we are not in the grip of fear:
>
> - plan for reducing fear,
> - lower your trade size,
> - do more research,
> - identify effective trader behaviours
> - change trader behaviours to become more effective,
> - prepare for your worst case scenario,
> - derive your risk of ruin so there are few surprises,
> - do contingency planning,
> - ...
> - build experience without fear,
> - use the opportunity to learn about markets and yourself,
> - plan for increasing trade size consistent with risk of ruin
calculations,
> - increase trade size slowly,
> - 'laugh all the way to the bank'.
>
> Certainly beats talking about one trade in the realtraders forum - unless
> of course you want to avoid the learning process.
>
> Unconditional regards, Ric.
> www.traderscalm.com
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
>
>
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