I Still Haven’t Started With Live Trading Yet, Because I Am Afraid to “Click”

Relatively often, I find myself in situations where beginning traders are telling me that they have done all the necessary work such as backtesting and profitable papertrading, but they still can’t find the courage to click “live”. Therefore I will try to summarize a few pieces of advice and tips in today’s article.

 

First of all, I would like to repeat that this advice is only for those who really underwent the necessary preparation work, i.e. they have done backtests to verify functionality of their system and have done papertrading for some time and were able to trade profitably for a couple of months (alternatively they have done only papertrading, i.e. without backtests, but in that case for a longer period of time and more precisely). Without these basic steps, the beginner doesn’t show a diligent and serious enough approach to trading and they absolutely shouldn’t click “live”, because they aren’t ready enough!

As long as the beginner fulfills the requirements above, then, based on my experience, there are three types of fear to “click”, which I will try to describe more closely.

Fear no.1: I am afraid to lose money

I think that in connection with trading, this is one of the most common and most natural types of fear. Nobody wants to lose money and, for the vast majority of beginners, the concept of actual loss that is part of a long-term profitable trading, is difficult to take in. Up until now, we were used to getting some kind of reward for every activity – in trading, this type of thinking is failing and it is even getting worse because of the factor that after a few hours, days, or even months of activity the outcome can be loss. This is why the fear of loss of money is completely natural and not always wrong. This fear has its positive side, because it helps conscientious individuals and it is pushing them towards better preparation and to make an effort to not underestimate anything.

And thus, it is important to realize if this is the fear that is stopping us to “click”. If the answer is ‘yes’, then it is important to openly confess to yourself if possible loss per trade represents a considerable amount (i.e. amount that we aren’t willing to lose, because in our normal life it represents a lot of money) or if it is an amount that doesn’t mean anything significant and a factual loss of such amount won’t be a major problem.

If we are talking about the first option, i.e. situation when possible loss from trading is unbearably high and it represents a lot of money, the advice is rather simple: Either you are undercapitalized, or you risk per trade more than what we are willing to lose and bear. In such case it is necessary to increase the account or move to a cheaper market (with lower volatility), alternatively lower timeframe – to achieve decrease of our stop-loss to a level that won’t be as painful. Or alternatively to do both (i.e. slightly increase the account and through a change of market or timeframe decrease the risk per trade).

If it is the second option, then the fear of loss of money probably isn’t the real problem. Maybe you are just telling yourself that this is the main problem and that the fear of loss of money has the biggest influence on you – but it can be just a conscious belief, which is far from what is happening in your subconscious. Then the real cause can be one of the other types of fears.

Fear no.2: I am afraid to fail, I am afraid I am not good enough

This type of fear is more serious, because it is connected to subconscious models resulting from failures and lack of success in the past (which lead to lower self-confidence).

In the past if we suffered some substantial failure (even deeper, in our childhood) which could negatively influence us, or if we failed in something essential (effort to sustain a business, effort to make a significant change, etc.), our self-confidence can be considerably broken and our subconscious can slow us down from any other effort in order to protect us from another possible disappointment.

The advice here is more difficult and if there is a deeper problem, it can be helpful to consult this with a professional psychologist who can help to find and eliminate such often blocks and fears.

Personally, I have tried various types of meditation and other alternative ways for similar types of subconscious fears, but I respect that not everyone is willing to try them.

Yet I think that the best way is simply to click and live through the possible first loss in the market – to see that there is nothing horrible about it!

Broadly speaking, there are only two possibilities to “force” yourself into this first click.

The first one is to plan and prepare everything in advance. The better and more detailed planning of our first click, the higher the probability of its realization.

First of all, set yourself a target that for example next week (don’t postpone it too much) at a particular day and time you do that first click. For example, you can say that it will be on Wednesday, which is for some reason the calmest day for you and that it will be between 4 and 6pm, the period you have done your training on. But, ideally, you will do that first click in the first 30 minutes after the market opens and you definitely take the first trade according to plan as soon as it occurs.

Afterwards, for the rest of the week, visualize that “Wednesday” (or you can choose any other day) before you go to sleep. Imagine that the day has come, imagine in detail how you sit in front of the computer and you patiently wait for a trade according to plan and when it comes, you click on the mouse without any hesitation. Experience and envision your feelings (it doesn’t matter what feelings you have, don’t think about them too much), imagine both possible scenarios – that the first trade will be both loss and gain. The day before your set date, stop thinking about anything and when that day comes, just calmly do what you have visualised a few days ago. You will see that it isn’t as bad as it seemed – once this first experience is behind you, the other ones will surely be simpler and you will slowly get used to it!

The second option sounds a bit crazy, but it works as well. Now go to your computer (or at the earliest possible moment). Open the chart and click BUY or SELL (completely blindley, it is absolutely insignificant if you buy or sell), count calmly to 3 – and then close your position. And it is done. Your first trade is behind you; you clicked. Nothing terrible has happened, you are alive and healthy, you survived, and it wasn’t difficult at all! So why so much fuss about it? It was a piece of cake! Done; now you just have to repeat it based on your signals according to your trading plan, and you are where you want to be. There is no need to make it complicated.

Fear no.3: I am afraid of change

The last type of fear may sound a bit strange, but it also has its own reason and explanation.

The human brain doesn’t like change. The human brain prefers the past (which it likes to idealize), it declines to its deep-rooted stereotypes (this is why most of the people like to run on “autopilot”) and it refuses any kind of change. Just try to imagine how you would react if your boss arrives to your workplace tomorrow and exchanges people amongst departments and also changes their job descriptions from last week.

Trading is a change – a significant change. It can mean anything (a successful future isn’t guaranteed) and whatever outcome will be, it can sound terrifying. If we lose, it can be an unpleasant change to worse; if we succeed, at present we think that it will be great to start a new dream life – but in reality we can’t really imagine actual steps towards such a considerable life change, because in that current moment such a big change is rather dramatic for our brain! And so, our brain can subconsciously sabotage us to keep us as long as possible in our current comfort of apparent certainty that at least we know what tomorrow will bring. The brain loves its certainties (even the bad ones and horrible ones – for many people unsuccessful and depressing relationships are still better than none at all, and rubbish and hated jobs are still a better solution than to take a risk, leave a job and search for a new one) and subconsciously it can block many of our efforts to change. For example, it can constantly block our efforts to click “live”, which could be understood as a first step towards possible change.

So, what to do in such a case? Simply initiate in our life as many small changes as possible, which slightly “derail” our routine stereotypes and help us gain more self-confidence to click.

Choose a different, new route to work from tomorrow on.

Do something you have wanted to do for some time now, or do something crazy this weekend, like bungee jumping, go-carts, etc.

Try a meal you have never tried before and go to a restaurant you have never been to before.

Do something, anything, that changes your usual rhythm and stereotype for a couple of days or weeks. It is necessary to train your brain for changes, to teach it new flexibility. Then it should be considerably easier to click, because once your brain gets used to a repeated disruption of stereotypes, it will be much better prepared for a change – and so for your first click.

These are today’s advices and tips. Don’t be afraid to combine a few of them at the same time. I wish you good luck and courage!

Happy Trading!

Article Source: http://EzineArticles.com/9755310

Gold Bullion: 11 Foolproof Strategic Investment Reasons

 

Obviously, you may be asking why is gold so important and what is all these noises really about? Well, the brain behind my write-up is that l doesn’t want you to be neglect to your financial/investment/retirement future and planning. You must not continue to leave in the dark-age in matters concerning gold and precious metals, thus I present before you accurate reasons why gold must be part of your investment combo.

1. Assets diversification. When contemplate on investment vehicles, usually an old adage comes to mind “don’t put all your eggs in one basket”. Although some interpreter say put all your eggs in one basket and watch over it, good luck to them. The reasonable and savvy investors must ensure that at least 5% of their investment portfolio is gold and precious metals.

2. Continual existence of gold. The fact is that gold out-leaved human age and as long as the world remains, gold will be in perpetuity. Gold is superior to other property, products or investments (buildings, vehicles, stocks, bonds etc.) because the value of these properties can erode with passage of time and prevailing economic experience. Take for instance, the global stock market saga of year 2008; also you need to incur maintenance cost in order to keep them in solid shape.

Gold on the other hand, the value is not eroded neither does it oxidized irrespective of the number of years we are considering.

3. Scarcity of gold. Gold is finite in supply. Statistics revealed that annual global production of gold is about 2,500tons and the worth of gold in the entire world is estimated at 9trillion US dollars. You better buy into gold now rather than undesirable in later years.

4. Status symbol. Without mincing words, gold is highly eyes appealing and have powerful impact on human nature/race. In fact, China and India are well known for the high value they placed on gold as their store of wealth, so their wealth is expressed by the quantity and quality of gold you possessed.

5. Counterparty risks. Gold is absolutely excluded from counterparty risk. The said term means you are putting your faith on the ability of the other party to a deal/contract to perform at the due date. The examples of buying stocks, employers and employees will explain better.
6. Substitutionary insurance policy. The purpose of insurance policy is to put you in the exact financial position you enjoy prior to the loss. Gold can also play the same role if you have same. At the time of national crises (war) like that experienced in Africa – Liberia and Ruwanda, 1Kg of gold can restore a person to life of conveniences again.

7. Bull market (gold). When you read any guide or advisory on commodity or security, disclaimer is usually the beginning of such and the summary is that “past performance is not a guarantee of future result”. Therefore, gold is not liable from that pattern and since the beginning of the new millennium; gold has been on bull-run with double digit gains.

8. Anchor against deflation. Of course, an open secret that economic recession is now a global phenomenon, the ever increasing debts of nations (USA and UK for example) could potentially result to deflation with catastrophic economic impacts. The aftermath is that value of assets will be crumble but gold has resilience and perform better in holding its value irrespective of economic challenges.

9. Geopolitical risks. Wars, terrorism (USA – unforgettable 911), natural disasters and other allied perils characterized the global society today. At the time of war for instance, safety and individual’s survivor is the major concern, assuredly there will be economic paralysis and downturns. The major assets; real estate, financial instruments, other properties and cash currency will be next to useless in value. During such time, gold provides peace of mind and the value remains constant.

10. Store of value. Historically, gold has thousands of years with backup track records as the best store of value. Irrespective of economic and global situations (technological changes, trends, development etc.) gold possessed the feature of acceptability and constancy of value. Therefore, for the safety of your investment, retirement and to pass your assets to next generation, gold is your best bet.

11. Gold is money backer. History tells us that first gold coins were minted and put into circulation by 550BC; gold has been longest and lasting form of money. Intrinsically, till tomorrow sun shall rise, gold remain a form of money-backers.

In view of these green lights, a stitch in time saves nine. Kindly click on the link below to start your gold investment or 401K.

Adewale Olofinnika is a multi-disciplinary professional, internet marketer and expert writer who has made a landmark in different niches on the internet. He is also a major player in some freelancing sites. Of paramount importance in all deals are professionalism, ethics, attention to details, integrity, nobilityetc