Many traders’ minds are compromised by fear in the heat of the moment. Inconsistent results follow no matter how much their trading system is tweaked or changed to create external discipline. Finally the trader comes to the uncomfortable realisation that the problem is the way they deal, or don’t deal, with fears. In our coverstory, Rande Howell of www.tradersstateofmind.com describes how traders can overcome these issues.
After a number of years of acquiring the knowledge of how to trade, most traders find their trading minds are still compromised by fear in the heat of the moment. Suddenly, all that knowledge is ambushed by fear just when they need that knowledge present in mind to make solid trading decisions. Inconsistent results follow regardless of how much their trading system is tweaked or changed to create external discipline. Finally the trader comes to the uncomfortable realisation that the problem is not with their methodology, their system,or the markets (despite these all working well in simulation) – the problem is in the six inches between their ears, and particularly with the way they deal, or don’t deal, with their fears.
