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LESSON: Trading With Fear

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]Trading with fear can be an absolute trading account killer.

If you are experiencing fear with trades you are putting on, it is because of one of the following factors:

  • You have not accepted the trade may loose (you may say you have, but not 100%)
  • You are trading with money you cannot afford to loose
  • You are risking too much money per trade
  • Cannot accept the fact of being wrong and placing a losing trade

When we enter a trade we have no idea whether that same trade will be a winner or a loser! No matter how great that trade may look, anything can and does happen.

This is why strict money management is needed along with a winning edge. It is also why we NEVER bet the far on any one trade, why no matter how good any trade looks we increase our risk above normal/average (because it is just another trade) and we always use a stop loss and CUT IT as a business loss / expense.

 

Your Winning Edge

The previous parts to this course have shown you the winning edge and now you must learn to accept the risk and accept that any trade you may put on could lose. It is a fact of trading.

Having a winning edge means that over a large sample of trades you will come out profitable. The individual trades do not matter. For example you may have a losing streak of 10 losers in a row, however you know from your edge that over a 50 trade sample your edge will make you profitable overall.

This is why we never over leverage or trade with more money than our account can afford to lose. Remember this as long, as you have capital you can trade.

DO NOT go risking the bank on any one trade. YOU NEVER KNOW WHICH TRADES WILL BE THE WINNERS![/text_block][/op_liveeditor_element]

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