I was chatting with a friend tonight about trading and she said she still had the "fear factor" when it came to pulling the trigger and taking a trade. It made me think. There are only a few reasons that people fear taking a trade:
1. Their trade size is too big. If the monetary loss if your stop is hit is frightening you, then lower the trade size. If the loss if your stop is hit is greater than 1%, take a long hard breath, think about your spleen, and reduce the trade size.
2. They haven't really tested their system. No testing = very little confidence.
3. They are afraid of being wrong. This usually relates back to #1 or #2 above.
1. Their trade size is too big. If the monetary loss if your stop is hit is frightening you, then lower the trade size. If the loss if your stop is hit is greater than 1%, take a long hard breath, think about your spleen, and reduce the trade size.
2. They haven't really tested their system. No testing = very little confidence.
3. They are afraid of being wrong. This usually relates back to #1 or #2 above.
