I
recommend beginning with article " Fears of Trading" which lists
and explains each type of fear - it's more than just being afraid to lose
money. lists the fears as the following:
1.Fear
of Losing Money
2.Profit
Turn into a Loss
3.Fear
of Being Wrong
1.
Fear of Losing Money: The fear of losing when making a
trade often has several consequences. Fear of loss tends to make a timer
hesitant to execute his or her timing strategy. This can often lead to an inability
to pull the trigger on new entries as well as on new exits. As a market timer,
you know that you need to be decisive in taking action when your strategy
dictates a new entry or exit, so when fear of loss holds you back from taking
action; you also lose confidence in your ability to execute your timing
strategy. This causes a lack of trust in the strategy, or more importantly, in
your own ability to execute future signals.
2.
Profit Turn into a Loss: Unfortunately, most market
traders do the opposite of "let your profits run and cut your losses
short." Instead, they take quick profits while letting losers get out of
control. Why would a timer do this? Too many traders tend to equate their net
worth with their self-worth. They want to lock in a quick profit to guarantee
that they feel like a winner. How should you take profits? Once a trend begins,
we stay with that trade until we have enough evidence that the trend has
reversed. Only then do we exit the position..
