Learn to Conquer the Fear and Emotions in Trading

Stock Trading Emotions

Emotions have no place in a day trader, swing trader, or even long term trader’s outlook on their investments. When we try and protect ourselves from fear, we end up resorting back to our habitual instincts to enter into a place of comfort, whether or not that place is reality. We stop taking responsibility for our own fears and start blaming others for our problems. At the end, we try and find an easy way out by searching for magic indicators, or Holy Grail solutions.


When I think back to my trading career, I remember the times where I continuously changed my trading techniques to achieve the result that I was looking for. No matter what technical indicator or stock trading system that I used, I would yield the same result, losses. It didn’t matter what I did, I had to fix the real problem which was in my psyche.

Reviewing and Conquering Stock Trading Emotions

You will face strong resistance internally from yourself when you take your first step to creating a larger vision for your stock trading. This means you will need to let go of your bad habits and take a leap of faith and do what is required to reach your goals. I have seen many trader’s who psyche themselves up and temporarily follow their stock trading vision. The problem arises when trader’s experience the emotions of losing; many tend to lower their expectations and go back into their shell, going back to what they are used to. They start reverting back to old habits and going back to square one again.

Some trader’s try psyching themselves up by screaming, shouting, speaking positive thoughts, working more, etc. Sure you need to be positive but by solely taking these steps, you are subconsciously reinforcing the idea that you are deficient in some aspect of trading that is preventing you from reaching that true level of mastery. They mask the underlying issues that you need to face up front and center.

Any time you make changes, you will face internal resistance from within, fear, fatigue, insecurity, and even opposition from family members or loved ones. You will most likely even receive negative energy from those around you who are threatened by what you are doing. Change does not happen overnight and you have to stick with your convictions in the face of self-doubt; be patient and allow yourself time to achieve the goals that you set out to reach. Don’t allow yourself to become a victim of these negative thoughts. They will only serve to distract you from concentrating on what needs to be done. Again, we want to attack the root of the problem which is how you interpret these feelings. You will not necessarily be able to rid yourself of them; however, you can stop focusing on them. Focus on the future and on what you want out of it. It is key that you change your thought process when it comes to negativity.

To manage your risk and emotions, you have to accept the negative feelings that you internally attempt to suppress. Rather than ignoring them, face them and associate no significance or meaning to these feelings. Eventually, we will become what we resist similar to the way we say that we will never become like our parents. Most of us do. Therefore, by showing no importance or resistance to your negative feelings; you allow yourself to focus on your positive goals.

You can ask yourself a few questions to understand how much your past affects your thinking. Figure out what the opinions of others mean to you:

  • Do you heavily rely on others?
  • Are you hesitant to speak up in front of others due to fear of sounding “stupid”?
  • Do you look to others for approval before you commit to action?
  • Do you constantly speak about your past accomplishments?
  • Do you need input from others in your decision making process?

For those of you who answer “yes” to many of these questions, you are fearful to act or commit to a plan of action without external approval. Consider how this affects your stock trading activities; you will quickly realize how fear prevents you from becoming the trader that you know you are or can be. Be honest with yourself and you will then move forward.

To Be Continued


  1. Atul said:

    Really wonderful thoughts. I would like to chat with you on this more.

    September 13, 2015
  2. Anup said:

    Thanks once again , you r great ..

    September 10, 2015
  3. jamwalr said:

    Book…The trading Tribe by Ed Seykota exactly elaborates on this…..All these fears become K-NOTS if not handled properly

    September 9, 2015
  4. mamashri said:

    Thanks guruji

    September 9, 2015
  5. arpana said:

    Sir ur blogs r really motivating…grt.job

    September 9, 2015

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