Power Of Pessimism 2 of 4

1. Power Of Pessimism 2 of 4

2. “The Power Of Pessimism: Defining the Nightmare”

3. “To do or not to do? To try or not to try? Most people will vote no, whether they consider themselves brave or not. Uncertainty and the prospect of failurecan be very scary noises in the shadows.  Most people will choose unhappiness over uncertainty.”

4. The solution is to develop a plan of attack.  If you find yourself unable to pull the trade trigger because of uncertainty.  Take some time to write down on asheet of paper what the fear is, distinguish what the pros and cons of this uncertainty are that you face in your trading.

5. With that clarified you can now devise a road map as to how to avoid the pit falls and what you will do if you hit a pit fall.  For example:  I will only trade 2% of my account on any given trade.

6. I will place a stop loss on all trades at the resistance level or at no less than a 3% draw down on my account. If I do encounter a draw down of this amount I will return to demo trading until I have had twenty positive trades in a row.

7. It is simple things like this that can make all the difference in defining the nightmare and facing that fear.  As a little boy, when I had a bad dream my mother would comfort me and tell me that I had the power to change that dream at any time I wished. 

8. As a father I find myself guiding my children through the same process of mental control.  As Traders we need to empower ourselves with the same mental control to face our fears and plan our attack.  Remember the noises in the shadows at best are just noises.