Day Trading & Forex Forum

Joe Ross

This question was sent to me from one of our students: Hey Joe! Would you agree with the following statement? “Of paramount importance to the trader, though, is fear. I am convinced that it is absolutely necessary to 'run scared.' Only an exaggerated emotion can generate the concentration necessary to survive as a trader.”

I agree, but not necessarily for all traders. Some traders are pretty laid-back and relaxed when they trade.

In general, trading is a stressful business. In many areas of activity we see constant demonstrations of performing under stress. Actors of stage and screen; sports figures; cold-call sales people… It is the ability to thrive under stress that sets the best in their fields apart from the other participants.

An effective trader handles stress on a survival basis. His natural instinct of self-preservation emerges whenever he is in a stressful situation. His behavior is reduced to pure selfishness and self-survival. He fights for what is his or what he wants to be his in the in a most greedy way. He flees from danger in a most cowardly way.

There is no thought about pride or style or personal grace or honor or bravery. Survive somehow. Win somehow is his only purpose.

As a trader, you must get in touch with your baser instincts and learn to accept yourself in that way.

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Get paid to trade!

and

Trade what you see, not what you think!

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I make these posts for general readership. I do not now nor ever have expected other traders to do what I do. Trading is something that has to be personalized. My hope is that what I post may be helpful to many traders who use the forum. Ultimately, trading has to become your own.
If whatever you are doing works for you, then keep doing it.

Paul71

Hi Joe.

Joe, do you really think you should be writting stuff like this?

Have you been on the bourbon again?

Only joking!

But seriously, this post is bad form from a guy like yourself.

Good spamming!

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Your trading account tells you everything you need to know about you as a trader and a person

lurkerlurker

I think most would agree that it is better to have no emotions than to be ruled by them while trading. A disciplined application of sound money managment will keep you in the game much longer than fear.

Rhody Trader

One could argue whether or not trading with absolutely no emotion is the right aim. Certainly, some elements of trading - like position sizing based on your risk parameters - should be automatic. None of us are robots, though. We all trade with emotion on some level or another. Best to figure out how to use emotion to our benefit, wouldn't you say?

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John Forman
Author - The Essentials of Trading