To overcome your fears and start winning in the marketplace, is to first know what you want and then become committed to it. The fact of the matter is – we all want more. What stops people is that psychological barrier of commitment. It inhibits them from being able to pull the trigger and make money in the marketplace. Here’s how to cure yourself of this kind of fear:
It starts with commitment
There is no doubt that we all have some form of fear of commitment in our lives. One that that stops us from getting what we want. In financial markets, this stops people from investing or trading and forces them to hold their money close to their chest. The way to overcome your fears and start winning, says host Andrew Baxter, is to first know what you want and then become committed to it. With a laser beam focus on whatever your target is, you are more likely to shrug off doubts and distractions like fear. Then you can actually start committing to what needs to be done. With this, you also need to understand why you want it.
As host Mitch Olarenshaw exclaims – if you want higher performance, you need to start with higher purpose. This is the kind preparation required that will help your mind become rock solid so that your fears fall to their knees and you can start winning the game of life.
Getting out of the comfort zone
Getting out of the comfort zone is actually something that is actually quite hard. Especially considering that here in Australia we really haven’t had too much to worry about. House prices and investors stock portfolios have all increased in value, and paid a hefty dividend along the way. Mostly everyone has had a job. This period of economic certainty means that a lot of people are afraid to shift what they do and venture into new experiences. Aka, enter “the fear zone”.
The question arises – how do you get out of the comfort zone to achieve your goals? Well, it is simple. You need to make your goal a ‘must’. If something is a ‘must’, you will find a way to achieve it even despite how much fear or discomfort that you experience. This is where you can operate in the fear zone, where learning and growth occurs.
Overcoming the fear zone
Once again – this is much easier said than done. The fear zone can be an awfully daunting space to operate in, as it often takes no prisoners. Quite frankly, host Andrew Baxter says the way to overcome this is to use your fear to fuel the fire. Sometimes you just have to step into the space and own whatever you’re doing before it starts filling you with your own self-doubt.
For those investing and trading the financial markets, this means putting the leverage on yourself where if you make a mistake with your decision making to simply learn from it. Yes, you will take losses and you will hurt at times . However, provided that you take these experiences to again ‘fuel the fire’ and use as leverage for the next time, you’ll be okay.
Some fears you commonly see with traders are concepts called ‘loss aversion’ and ‘representative bias’. And you’ve probably experienced these both before yourself. Loss aversion is the idea that losses loom larger than wins. In otherwords, you’d rather NOT lose $5 over taking the risk of winning $10. So you keep your money close to your chest.
Representative bias occurs when the scars from a previous trade influence your decision on the next. Even though they really have no influence on another. In order to overcome these fears in the market, things like trading journals and trade postmortems are a great place to start says host Andrew Baxter.-A learning is as good as a profit when it comes to trading.
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The key is risk management
Like anything in life, you have to have an exit plan. Trading is much the same and by virtue of employing some rock-solid risk management techniques the fear of losing money in the stock market can seem awfully less daunting. Host Andrew Baxter poises this as an example of climbing a tree – merely having a safety net at the bottom to catch if you did fall takes most (if not all) of the fear out of the climbing process. His recommendation: stop losses or the use of bought put options in the stock market.
Both of these tools allow you to keep your money safe. It will keep you sleeping at night knowing your hard-earned cash is protected. Of course, any investment will endure some form of risk and that certainly may cause some fear. However, by understanding and implementing the techniques we have discussed throughout this juncture you will be in a much better position to start winning in the marketplace. Quite frankly, this starts with education so reach out to Andrews team Australian Investment Education to learn more.