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Fear is your best friend and your worst enemy.

You know what fear does. It costs money.

Fear causes:-

1. Closing trades early or in loss when waiting would have provided more profit.
2. Setting artificially high stop losses.
3. Not trading at a higher risk/reward. “But I’m used to making $2 a day and I’m happy”
4. Not trusting yourself.

I was talking to a good friend of mine, Tom, who is a great trader,  I love talking with him although our trading plans are polar opposites. But I realised from him that my fear was costing me money. I have perfectly good trades, well planned and timed that I make a profit on but that could have been more profit, it seems all the videos I watch about money management say aim for 100% profit, turn $1000 investment to $2000.

So many traders quit the trade with 10% or 20% when there is so much further to go.

Master your fear, or it will master you. Identify what you are fearful of. “I’m fearful of losing so I look stupid in front of my friends”, fine, trade in a way where your losses are very minimal with less risk. Or push the boundaries of your fear.

Sometimes however, fear is a good thing. It stops us overtrading or letting trades loose to much (you make losing trades?). So it’s a balance.

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