Overcoming Stock Market Fears
This area will develop into a resource for traders to share ideas, strategies, personal stories, and insights into how they experienced and overcame fear, anxiety, or critical hesitation in trading, whether it stemmed from personality issues or previous ‘trading traumas’. I will also be updating links and resources of sites and blogs online where you can find more information.
There are key behavioral and cognitive strategies that we can use to assist us in overcoming barriers that keep us from achieving our full potential. Fear is one of these barriers that holds us back and I have experienced it just like many of you have in your professional or speculative trading endeavors. This source will connect us as we learn from each other, build our confidence, and overcome the uncertainty of the twilight area from where we are now and where we want to be in the future.
The Disciplined Trader – Mark Douglas. Surprisingly focused on how fear develops in a trader (unfulfilled expectations and ‘traumas’) and how it is reprogrammed and overcome. Such a great book.
Dr. Steenbarger’s post on Overcoming Performance Anxiety/Fears.
Dr. Steenbarger’s post on Making Sound Financial Decisions Under Fear.
Dr. Steenbarger’s post on Trading and Anxiety.
Dr. Steenbarger’s post on Anxiety in Trading – Micromanaging Trades
Active Options Trader’s quote on overcoming fears entitled I think I can… I think I can.
Corey’s post on Ride Out Emotions for Greater Success.
Corey’s post on Shifting Focus for Greater Success.
Corey’s detailed post on “How to Overcome Deer in the Headlights Syndrome.“
Corey’s insights from Demian on “Fear and Dreams“.
Corey’s link to Dr. Bruce Hong’s post series on “Interactive Discussion Involving Fears in Trading“
Corey on “Three Quotes on Overcoming Fears”
Corey’s Link to two sites on Behavioral Finance Articles.
Corey’s brief post on “Regret Aversion.”
Corey’s brief post entitled “Mental Accounting Errors set up Failures.”
Corey’s post on overcoming fears through “Five Ways to Increase Possibilities for Profits.”
Corey with a list of questions to ask regarding Risk-Taking.
Corey on Studying Your Risk-Taking Abilities.
Corey on “Taking On More Risk for More Reward.“
Corey on “Comments on Less Successful Traders.”
Corey on “Asking Empowering Questions.“
Corey commentating on a link from Dr. Steenbarger entitled “Resilience, Courage, and Conviction.“
Corey’s comments on a Kirk Report article, “Winning Trader’s Edge“
Corey’s comments on “To Over-Conservative Traders – Comments from a Master.“
Teresa Lo on “Own the Zone” or “Crossing the Threshold” – a great post.
Corey’s intro on “Psychology of Risk Taking – Foundational Concepts.“
Corey on “How do Emotions Affect my Trading Targets?“
Corey on “Fear and the Recent (March) Decline.“
Fear Article Links
This section will highlight key links to other articles designed specifically to address fears and hesitation in trading.
Fear-Based Trading: Bennett McDowell
Most losing traders trade from a fearful mindset. Their feelings of fear usually revolve scenarios in which they see themselves failing as traders by losing all their money and their respect and / or repeating past failures.
â€œLeave an opening in your mind where fear can gain hold, and, guess what, your fear becomes reality.â€
â€œTraders who fear failure will ultimately fail. Traders who fear success will not succeed.â€
â€œYou must live in full awareness. Let your positive beliefs lead you to take the action necessary to succeed.â€
The Five Guiding Principles of Trading Psychology: Dr. Brett Steenbarger
I cannot say enough praise for the writings and insights of Dr. Brett. I learned so much from his book Enhancing Trader Performance, which challenges the popular notions of trading psychology and that â€œpsychology is 90% of trading successâ€. Please read that book. In the meantime, study his post that summarizes – and challenges – guiding principles of trading psychology.
The Four Fears of Trading and TigerShark Article List (Price Headley) linked at Afraidtotrade.com. Absolutely excellent post and reference for the most common fears experienced in trading, as well as a whole host of other resources by Price Headley.