The Four Fears of Trading

Feb 26, 2007: 6:08 PM CST

When beginning this blog, I think it is important to highlight one of the classic ideas from Price Headley concerning “The Four Fears of Trading”

1. Fear of Loss
2. Fear of Missing Out
3. Fear of Letting a Profit Turn into a Loss
4. Fear of Being Wrong (not being right/perfectionism)

Links come from Price Headley, supported at TigerShark Trading.com
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Conquer the Four Fears of Trading (to Achieve Consistency)” – A Must Read for beginners
Fear of Missing Out
Handling Fear and Greed in Your Trading
Pulling the Trigger Consistently in your Trading
Pulling the Trigger on Your Trades” (Price offers more advice to those who are hesitant)
Are You In Control When You Trade?” (You can be mentally in control while you cannot control the market outcome)
Seven Insights for Disciplined Trading” (From Mark Douglas’ Trading in the Zone)
Building Your Trading Confidence
The Perils of Perfectionism in Trading” (Perfectionism related to “Fear of Being Wrong” and can be deadly)
Tune In to Trading Excellence
Learn from Champions to Improve Your Trading
Your Plan for Improving Your Trading
A Lesson in Contrarianism
Which Stock Market Theory Works?” (Dow Theory, Elliot Wave, and Fibonacci)
Learn to Avoid Traps that Lead to Trading Losses
Using Stops and Limits to Improve Your Trading Profits
Advantages and Disadvantages of Different Trading Systems
Two Heads are Richer Than One” (Discusses the Advantage of “Trading Buddies”)
Always Use Stops When You Trade
Planning Your Trades
Assembling Your Trading Arsenal
The Process Gets You Paid in Trading
Setting Up Your Trading Workspace
Beliefs of Winning Traders” (Six traits and beliefs)
Freudian Trading Techniques” (Four strategies to overcome ego in your trading)
Mental Toughness for Traders” (Becoming a great trader requires mental toughness)
Checklist for Success in Trading” (Six items to assess)
Going from Good to Great in Your Trading” (Cultivating work ethic)
Focusing on One Trading Goal at a Time
How to Set Goals for Your Trading
Key Trading Skills You Need for Success” (Six key skills from Price)
Four Stages Of Awareness in Trading” (Excellent post to help you know where you are in development)
Preserve Your Mental Capital for Trading

BONUS: “The Fear of Missing Out” personal blog post of Kevin at Kevin’s Market Blog.
Personal story and pertinent advice including, “What works for me is to simply follow a trading methodology and have the discipline to stay with it” and “Another way to avoid the fear of missing out is to condition your mind into believing that it is more painful to lose money than it is to miss out on a trade that is not part of your game plan.”

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Comments
  • Excellent resource and would be very helpful since many things are researched and pulled together at once place.
    Yes, fear is an in-built factor that drives many of the market actions and inaction's. Out of the four, I can mark the last one in ‘Fear of Being Wrong’ in quote and unquote.

    Lisa

    Hedge Fund Compensation

  • You're right! We can never be certain, and we can only learn by doing (action). Taking the trade, embracing the risk, and learning what went wrong. Also, we need to study what went right, not just be happy and move on. Action over inaction! Thanks, Jack!

  • Jack

    Most excellent Corey, I am glad to have found this list. Thanks! So many think they need another book,another method, we just need to apply what we already have!

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