Finally! Unique Futures Stock Market Trading Curbs Expose Fear and Perception Secrets
By David Jenyns
When examining futures stock market trading curbs, it's a well-known saying –
that 'traders should have a healthy fear of the market'. It seems like a
perfectly reasonable assumption to make. The market is volatile, and each trade
you make is to some extent unpredictable. But, it's one thing to learn to accept
the risk of the market, and another entirely to be afraid of it.
Ninety-five percent of the futures stock market trading curbs errors you are
likely to make, those errors which will cause you to consistently lose money,
will be due to your attitudes – your fear – about being wrong. Fears of losing
money, of missing out on profitable trades, or of leaving money on the table
will cloud your thinking when you are trading. Your fears can cause you to act
in such a way that what you are afraid will happen. If you're afraid of being
wrong, your fear will influence your perceptions of market information in a way
that will cause you to do something that ends up making you wrong.
When you are afraid of something happening, all other possible outcomes cease
to exist. You can't perceive the other possibilities, or act on them properly if
you do recognize them, because your fear paralyses you. Physically, fear causes
people to freeze or to run. Mentally, it causes them to narrow their attention
to the object of their fear. This means that thoughts about other positive stock
market trading curbs outcomes, as well as other information from the market, are
barred from your mind. You can't think about all the rational things you've
learned about the market until the event is over and you are no longer afraid.
Then you will think to yourself, 'I knew that. Why didn't I think of it then?'
or, 'Why couldn't I act on it then?'
It's difficult to understand that the source of these problems is usually our
own attitudes. Many of the thinking patterns that adversely affect our stock
market trading curbs are a natural result of the ways in which we were brought
up to see the world. These thought patterns are so deeply ingrained that it
rarely occurs to traders that the source of their trading difficulties is
internal, and derived from their state of mind. It can seem more natural to see
the source of a problem as external, in the market. This happens because it
feels like the market is causing pain, frustration, and dissatisfaction. Most
traders do not want to be concerned with such abstract considerations as
considering how their thoughts influence their trades, but understanding how
beliefs, attitudes, and perception effect your futures stock market trading
curbs are as fundamental as learning how to serve is in tennis.
You could say that understanding and controlling your perceptions of market
information is important only to the extent that you want to achieve consistent
results. You don't have to know anything about yourself or the markets to make a
winning trade, just as you don't have to know the proper way to swing a tennis
racket or golf club in order to hit a good shot – occasionally. The first time
you played golf, for instance, you might have hit several good shots throughout
your round, even though you hadn't learned any particular technique. But your
score was still probably well over 100 for 18 holes. Obviously, to improve your
overall score, you needed to learn technique. The same is true for developing
good stock market trading curbs in your trading.
Traders need technique to achieve consistent results. If a trader isn't aware
of, or doesn't understand, how their beliefs and attitudes affect their
perception of market information, it seems as if it is the market's behaviour
that is causing the lack of consistency. As a result of this perception, it
stands to reason that the best way to avoid losses and achieve consistent
profits is to learn more about the markets.
This bit of logic is a trap that almost all traders fall into at some point.
Unfortunately, this approach doesn't work. The market simply offers too many
variables to consider, and these variable often conflict. Furthermore, there are
no limits to the market's behavior. It can do anything at any time. In fact,
since every person who trades is a market variable, it can be said that any
single trader can cause virtually anything to happen.
That means no matter how much you learn about the market's behavior, and no
matter how brilliant an analyst you become, you will never learn enough to
anticipate every possible way the market can move. If you are afraid of being
wrong or losing money, you will never learn enough to compensate for the
negative effects these fears will have on your ability to be objective and to
act without hesitation. You can't be confident in the face of constant
uncertainty by acquiring information. The hard, cold reality of stock market
trading curbs is that every trade has an uncertain outcome. Unless you learn to
completely accept the possibility of an uncertain outcome, you will try, either
consciously or unconsciously, to avoid any possibility you consider painful. In
the process, you'll subject yourself to any number of costly self-generated
You can get over the bad futures stock market trading curbs by accepting the
risk, and moving beyond your fears, you can greatly increase your ability to be
a consistently profitable trader. This requires self-knowledge and discipline,
but the rewards that can be attained on the market more than make the effort
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| Some other articles by David Jenyns|