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How To Turn Your Stock Trading Fear Into Profits

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.

    Please like & share my blog with your friends:

    Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.

    My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:

    What Traders Say About This Course
    Testimonials Year 2015
    Testimonials Year 2015 Page 2
    Testimonials Year 2015 & 2016
    Testimonials Year 2016
    Testimonials Year 2017
    Testimonials Year 2018
    Testimonials Year 2019
    Testimonials Year 2020 to 2023
    What People Say Just After Reading My Course
    Emotional Testimonial by a Young Woman Trader and Her Mother
    One Of My Client Is Making Rs.25k Per Week
    Difference Between Other Courses And Mine
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    You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.

    This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

    This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.

    What You Get?

    Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.

    You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.

    Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).

    Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.

    The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

    Technical knowledge is NOT required. No need to monitor trades every second.

    In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.

    Since trades are properly hedged there is no stress in trading my strategies.

    I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.

    11 Reasons Why You Should Do The Course:
    1. TA Knowledge NOT required
    2. NO Software Required
    3. Regular Monitoring NOT Required
    4. Continue with Your Job
    5. Do Course From Your Home
    6. 100% Hedged
    7. Stress-Free Trading
    8. Not too much money needed to trade
    9. Scaling Possible
    10. One Time Fee
    11. FREE Support For Months
    To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

    Read the details of the course here.

    If you want to enroll for the course you can do so here.

    P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.

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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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