Should You Be Fearful When Trading Stocks?
Eric Thomas Seil3 min read·Just now--
Is it normal to fear trading, especially when things go south? Or should you be fearful when trading with stocks?
You should have a “No-fear” mindset when it comes to trading.
After trading for well over a year and a half now, I’ve built more confidence in my ability to make trading decisions and navigate through all the market noise.
If you’re not ready for trading yet, that’s perfectly okay.
Take the time to learn about it first.
But once you’re ready, you’ve got to take this no-fear approach to trading.
That’s what I want to discuss in today’s letter.
Should You Be Fearful When Trading Stocks?
Fear is natural, but thinking irrational on what won’t happen doesn’t benefit you. In any type of investing or trading, there’s always risk (which brings fear). But, learning to override that fear will help you become a much better trader in the long run.
The “No-Fear” Mindset
On one of my most recent calls with my trading group, one of the instructors demonstrated his trades and explained his weekly trading approach.
It was a phenomenal lesson in how to handle existing trades you’re looking to exit and identify new trading opportunities.
It even helped me figure out how I can trade more effectively.
While I have my own preferences and style, it was a good model to follow.
As he went through his trades, he told our group that he basically takes a no-fear approach.
For trades that he’s been in for quite some time and may be looking to exit, he keeps trading through it, while staying patient and disciplined.
Rather than taking a fear-based approach where you’re constantly concerned about your trades, you should focus on two key principles:
- Patience: Have the patience to work through your trades every single week and keep looking to make money.
This way, you’ll eventually exit trades with significant profit.
- Discipline: Keep trading every week consistently.
It’s absolutely key.
If you don’t have discipline and you’re not trading every week, it’s only going to make this approach much harder.
If you’ve been trading for a while and feel good about the trades you’re making, there’s absolutely no reason to be fearful.
Here’s the thing:
If you’re fearful and you don’t like the trades you’re placing, then why are you trading in the first place?
That’s something to ponder as you look at your options.
You got to keep the pace going, stay patient, and be disciplined in your trading every week.
In the end, things will work out, and when they do, it can make a big difference in your long-term success.
Keep that in mind: Don’t be fearful, keep trading away, and your future self will thank you later on.
Options trading is what I discuss in my latest eBook, Pennyful Vs. Cash Flow, where it’s laid out as another alternative to traditional savings.
There are other ways you can do it, but options trading is one my favorite approach to do.
If you’d like to grab your free copy of it today, check it here to get on my email list.
I look forward to seeing you over there, with other bonuses coming your way.
Until next time,
- Eric Seil
