Dodging Bullets 3-4
(excerpts in this series were taken from the book "The 4-Hour Work Week"Â By Timothy Ferris)
"Conquering Fear=Defining Fear"
In the last post 2-4 "The Power of Pessimism"Â I talked about facing your fears by using a plan of attack and addressing what those fears are that are keeping you in place.
I would like to define this process in greater depth.
Define the nightmare. Create in your mind what that trading experience would be: whether it is a first loss, a streak of losses, or a serious drawdown causing a set back in
your trading account. Create that scenario in your mind and then live as if you are there in that moment. (possibly you have already experienced it or are living inside that
nightmare right now?) Either way put yourself there and record the emotions that you feel. Once you have defined the emotions you are feeling, refer back to your plan of attack.
Make sure that you have defined the fear as it really is, then make any adjustments to how you will cope with the emotions that you are having and define a plan to extinguish them.
GOOD TRADING