Protecting Our Inner Fortress From Fear
"No, it is events that give rise to fear — when another has power over them or can prevent them, that person becomes able to inspire fear. How is the fortress destroyed? Not by iron or fire, but by judgments . . . here is where we must begin, and it is from this front that we must seize the fortress and throw out the tyrants."
— Epictetus, Discourses
When I read today's meditation, I was immediately drawn to the fear element of trading.
I have stressed on a number of occasions in previous "daily journals" the importance of not allowing fear to control your trading. If you have a strategy that works for you long term, then as long as you follow the rules/criteria for that strategy 100% of the time, you will be profitable over time.
Yes, some trades will go against you occasionally and that is part and parcel of trading I'm afraid!
A trader who tells you that he has never had a loss, is living in a fantasy world! It happens to us all from time to time, but as long as we cut short those losing trades at our pre-agreed exit point to control the loss, we are protecting our trading bank. The profitable trades will far outweigh a losing trade; IF it is managed and controlled.
If you practice executing your strategy day in day out, you will get to know it inside out and back to front. This means that you will become consistent, because you will know exactly what to do at any given point during a trade.
Consistency breeds confidence, which in turn should slowly start to eliminate the fear factor of a trade going against you. If you can deal with trades going against you, swiftly and without hesitation, you will become impregnable to fear. You become confident that you can deal with whatever the markets throw at you and you will keep proving this to yourself, time and time again, by your actions and your results too of course!
So stick to the rules/criteria for your strategies, stay fully focused and "in the zone" and stay patient and disciplined to only execute your trades when the right opportunities present themselves.
By doing all of the above, we are "protecting our inner fortress from fear"
If you can trade without fear, you will go from strength to strength on your trading journey, I promise you!