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How To Turn Your Stock Trading Fear Into Profits

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Fear is your biggest enemy in trading. In this article you will learn how to convert your fear into profits.

New traders start with greed but no fear. After a few losses their greed turns into fear and either they stop trading or they reduce the trading size quite considerably.

Stock trading is a calculated risk, people who take calculated risk almost always make money – those who do not take a risk or take too much risk almost always lose money.

If you fear trading you will never trade and never make any money or take a stop loss in panic losing money. Fear is responsible for a lot of mistakes new traders make.

Fear is of three types:

  • Fear of losing more money and taking a stop loss before the original plan,
  • Fear of missing the profits made and therefore booking profits much early than desired in the original plan, &
  • Fear of the unknown and not taking the trade at all and repenting later of not taking the trade and missing profits.
  • These are some tips to manage fear and become a better trader

  • Record all your trades and study well your best performing trades:
  • Your past trades are your best teachers. Maintaining a trading journal is very important for a trader. If you will not maintain a trading journal you will forget your past trades and will never remember why you took that trade. Maintaining a record will help you to know which trades to take and which ones to avoid. If your confidence level is high you will not have any fear in trading.

    If you do not have a record you will never know the probability of a trade and you will always fear trading.

    No strategy wins 100% of the times, but any strategy that makes money 80% of the times and loses a small amount is considered a good trade. Positional trades needs hedging to make sure losses are small in case there is a gap opening against the trade. So you should learn hedging. You can learn hedging in my option trading course.

    Once you know that the probability of success is 80% and losses if any will be very small then you will never fear trading.

    Problem with new traders is that they do not know what to trade and end up speculating. Speculating is also one of your biggest enemy in trading. 100% of speculators lose money.

    If you know the probability of success in your trades then the fear will vanish automatically. Jus5t make your set ups and ignore everything else. However if you cannot assign probability of success to a trade you are gambling not trading.

  • Be Prepared for Any Situation And Develop A Routine
  • Markets move up and down but you must be well prepared for any situation. Preparation gives you confidence and eliminates fear. There should be a research time, there should be a time to take trade and there should be a time limit to take profits out. If nothing is planned you will speculate lose money.

    Why you are taking the trade is more important that what you are trading.

    If you know that a strategy works for you the your confidence level will increase you will not fear anything. By 9.15 am you must be ready with what to trade and wait for the opportunity.

    You must also know how much you’re willing to risk on each trade, what direction you want to trade – long or short and why.

    You must be ready with these questions before your trades go live:

    1. What will I do if the stock opens weak?
    2. What will I do if it opens strong?
    3. How much money you are wiling to risk if what you thought did not happen. For example you may have thought about a trade if the stock opens gap up, but actually opens gap down etc.
    4. If no.3 happens will you take the trade or not?

  • Manage Risk Per Trade To Eliminate Fear
  • Being greedy and keeping all eggs in one basket just because you made money in last trade is WORST MISTAKE OF TRADING.

    See this trader. He made Rs.19 Lakh in a few days and then lost Rs.36 Lakhs:

    Rs.36 Lacs Loss after making a profit of 19.5 Lacs

    So basically you win in a trade and lose control on risk management – greed takes over and you lose money.

    Do Not Forget Risk Management – this will control both fear and greed.

    Let me take an example. You think stock XYZ will fall and you shorted the stock with full margin in your account – after that you will tumble with fear. Even if stock moves up 1% from there you will fear and take a stop loss.

    Later to find after taking the stop loss, the stock fell down as you had assumed. Had you managed your risk well, you may have waited for a reversal.

    If you do the above mistakes you can do my course and learn hedging strategies to trade without fear and proper trading plan. You will learn which strikes to trade, what to sell and what to buy, when to enter and exit out of the trade. Hedge will manage your risk automatically so the trade will not bother you much as you will learn how to manage risk. The risk is just 1.5% of the margin block. Success rate is 80%. Over a long period you will make money without much stress. You can enroll for the course here.

    What you should do now

    1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

    2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

    3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.


    What Traders Say About My Course

    Course fees: Click here to know the course fees.

    Here is complete process of my course

    1. Once you pay I will send you the course materials for studying to your email.
    2. You read and ask me questions via phone/whatsapp/email to clear doubts.
    3. Then you start paper trading and still can ask me questions.
    4. After about one month you can start trading.
    5. Since doubts can come anytime the support will be there for one year.

    Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

    If you have any question you can contact me.

    You can read about me here and my trading mistakes here.

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    About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

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