Trading Fears: There’s A Monster In The Bed

Trading fears are similar to childhood fears.

I remember when I was very very young I’d hear noises in the night.

I’d do ‘the walk’ – you know the one that all 4 year olds do. Sprinting down the hall to your parents room and safety from the monsters lurking outside.

I’d stand at the side of Mum’s bed until she awoke. I didn’t dare stand at my father’s side.

Of course a small prod here and there helped wake her. Or a random cough.

She was obviously a very deep sleeper because sometimes she never awoke (Oh, please! – she knew damn well I was there).

Today we have a sweet 4 year old stay with us once a month and she does the same walk. Her wake up call is a bit of deep breathing – usually within a few centimetres of Trish’s left ear.

After a groggy discussion we conclude there are no monsters lurking and we can all go back to bed.

I love these lines from Reminiscences of a Stock Operator:

“I can’t sleep” answered the nervous one.
“Why not?” asked the friend.
“I am carrying so much cotton that I can’t sleep thinking about. It is wearing me out. What can I do?”
“Sell down to the sleeping point”, answered the friend.

The trading monsters also lurk during the night. They’ve certainly visited me before.

If they visit you, exit positions or reduce exposure until you find your sleeping point.

This is such great advice from Jessie Livermore: sell down to your sleeping point.

Another way to allay trading fears is to have a trading plan. Build yourself a trading plan that suits your personality and risk appetite. That way you will more likely experience trading comfort than trading fears. Have a look at Tradesmart – New Trader’s Blueprint.