Fear and Fearless

"Nothing in life is to be feared. It is only to be understood" - Marie Curie.

The week has been good for most Equity futures traders with the increase in volume and volatility.

Had a chat with a fellow trader after the market closed yesterday and was sad to learn that he was not doing well since the close of the trading floor. That's almost 4 years ago and yet he is still very persistent. He confessed that fear have overtaken him now with his dismal performance despite being hardworking and trying his best.

Another trader who overheard our conversation, suggested that to overcome this demon "fear", he should try bungee jumping. Will it help in overcoming the fear in trading? I doubt so.

The definition of fear is a feeling of anxiety and agitation caused by presence or nearness of danger, evil, pain, etc. So, what's the danger and pain in trading? It's not life threatening and this feeling of pain is all about losing money.

I explained to him that fear existed in him because he is not sure about his strategies, he don't know his edge and he is simply gambling without the trading skill. This skill can be acquired through learning, that's best cure for fear of trading.

At the arcade, there is another trader who is fearless and he specialises in trading the Nikkei. This trader sometimes scalps up to 5,000 contracts a day holding position size from 20 to 50 lots, his P/L a day is my monthly target. I respect this guy for his guts though I'm not too sure whether he is such a good trader. His commission alone is close to S$10,000. Being an old bird, I certainly hope that he can survive in the long run.

I have my fear too, I trade small relative to my margin, I am now a Kiasi and Kiasu trader taking minimum risk now compared to my younger days. I just want to be consistent in my trading making small amount of money almost everyday with no stress, enjoy trading and the challenge of beating the market.

My cousin had the best performing week since joining me, it's really a great boost to his confidence though he still has a long way to go, he is still fragile. Being new to the industry, his performance is up to expectation, he is keen, willing to learn and most important, hard working.

I once told him that in order to succeed, he need to cast other things aside, just talk, think, read, focus and dream about trading everyday. He is getting better by the day with the constant drilling of having a strong and positive mental attitude.

I have a new trader who joined me this month, he approached me a few months back and after a short interview, I decided to take him in as my trader. He was a stock broker for a short period of time. Young and energetic, he is full of vigour and enthusiasm with a happy deposition. I figure it would be much easier to coach him with his financial background.

His performance for the first month is way beyond my expectation. He is a smart chap and learns very fast. With proper guidance and grooming, I believe he has the potential to be a great trader.