Overcoming Fear Of Trading
Before you can find success in the stock market, you have to overcome your fear as one of the biggest roadblocks that keeps people from finding financial success as traders is that they are too hesitant to actually take the leap…and because I trade scared every single day, I’m not scared to trade!
Download the key points of this post as PDF.
While it’s true that trading penny stocks comes with a healthy dose of risk, there are ways to overcome it. Here, I’ll offer some specific tips on how to overcome your fears so that you can open the door to making money.
1. Ask yourself: what’s the worst that could happen? It can be extremely effective to face your fears head on. Often, it’s fear of the unknown that is so scary. If you define your fears or worst case scenarios, you may find that they’re not nearly as bad as you think.
So, go ahead and ask yourself this: what’s the worst that could happen on any trade when you focus on my rule #1 from this list of cutting losses quickly? Without a specific plan on a trade or an inability to follow key stock market rules like these, then your answer might be things like losing all your money, losing the respect of your friends, ending up with less savings than before. These are very valid fears. But by trading absolutely scared like I do on every single trade, you can begin to take steps to avoid these outcomes.
2. Ask yourself: what’s the best that could happen? Because balance is important, you should also ask yourself the opposite question. What are some of the good things that could happen if you began trading penny stocks? For instance, you could earn money, get out of debt, and make longtime goals a reality…that is if you follow the rules and become my next Millionaire student!
By focusing on the potential rewards in addition to being aware of the potential negatives and risks when you don’t plan meticulously ahead of time, you’ll create a sense of motivation for yourself to move forward as a trader…and thinking about this over and over and over, and then putting it into practice over and over and over is the key to longer term success over time.
3. Get a solid education. It is said that 90 percent of all day traders lose money and there’s a simple reason why: most traders just jump in without preparation and without an education. Like anything else, as a trader, you’ll have a much higher chance of success with a great education…there’s no magic formula for getting rich in the stock market, but ALL of my Millionairestudents have studied their butts off on , video lessons and webinars…
Moreover, this is why I created the Tim Sykes Millionaire Challenge, and why my top students now also help me mentor others too. There simply was never a program out there that really effectively helped people learn to trade penny stocks with proper rules and discipline, so my team and I created it. Now we all act as mentors to my students so that we can create more millionaires and help people realize their financial goals!
4. Learn what fears are realistic. As you begin actively trading, you’ll probably go back to those fears detailed in #1 above. However, now that you’re actually in the thick of trading, you’ll be better to identify which of your fears are actually realistic.
Now that you’re trading, you also have to evaluate your personal strengths and weaknesses and you have to be totally honest with yourself to achieve the best possible outcome as only then can you begin to work with with you have and what you don’t have.
For instance, if you constantly procrastinate on doing research and it can make you miss the best time to buy a stock, then that is a specific thing you can work on to reduce potential failure. By working on yourself like this, you can overcome your trading fears by being proactive and maximizing your strengths while minimizing your weaknesses
5. Do what you can to minimize risk on every trade Building on the last point, a powerful way to overcome fear is to take specific actions to minimize risk and the potential for great loss.
In the world of penny stock trading, this ultimately amounts to thinking for yourself and planning so well that it becomes automatic/mechanical. That can be a scary thing to some, so let me break it down.
Basically, you want to learn all that you can, from my teachings and from other traders who are mentors in my, from looking at successful trades and so on. From there, you’ll begin to make smart choices for trades, which you should always research and decide about for yourself — do not rely on anyone else as ALL of my top students have become self-sufficient!
Being meticulous is the name of the game here to minimizing risk and potential failure. You’ll never be able to totally erase the risk, as any kind of financial speculation is inherently risky, but by mitigating it you can reduce your fears in a big way.
6. Make yourself accountable with goals. I find that one of the best ways to reduce your fears is to replace it with something bigger and more exciting. This is where goals come into play. By setting extremely specific goals, you are in essence giving yourself something to motivate yourself and studies show that by having a big goal, as opposed to a small one, you can increase your daily performance by 15-25% so don’t be afraid to dream big and then work hard every single day to actually market it happen…I bring up my Millionairestudents a lot not to brag, but to inspire you and show you what’s possible with enough hard work!
When you’re highly motivated, it can supersede fear of failure and help you stay on track as the journey to ultimate freedom is a marathon not a sprint so you must carry on even during your setbacks. So make yourself accountable by setting specific goals. If your goals are very far away at the moment, break them down into more manageable milestones along the way, but never forget your ultimate goals in the end.
7. Find a guide. You shouldn’t go into the wilderness without a guide as that would be dangerous and the stock market is no different! Sometimes the world of penny stock trading can seem like the great unknown, right on your laptop screen. So it’s helpful to have a teaching guide and mentor for your journey…and because I never had a mentor or guide at first, my goal is to be the mentor to my students that I never had, but always wanted.
I act as the mentor for my students in the Tim Sykes Million Challenge Team. Ultimately, I do this so that they can find success in the easiest and most streamlined way. They can benefit from my knowledge and experience and find success faster. I get the benefit of sharing my knowledge and improving others’ lives. It’s a win-win.
8. Keep track of your progress. Keeping tabs on what kind of patterns are working and what is not is a great way to become more confident in your trading…ALL of my topstudents agree and say this one habit has been key to their success.
So you must maintain a daily log of your activities as a trader and researcher. Every week or so, review this log carefully and see if you can identify patterns of success, or patterns that are not delivering successful returns. By identifying what is working and what is not, you can begin to get rid of the habits and things that are not serving you and focus on what is making you money.
9. Keep learning. If you want to be a great penny stock trader who isn’t held back by fear, then my best advice is to always keep learning and trying to improve. A few easy ways to do this are by looking at what’s working for others, reading everything you can, and applying yourself to your studies in my Millionaire…for example, see this new video I just posted of one of my hottest students right now as he made nearly $20,000 in 1 day a few days ago and reviewed the keys to that big profit day…and remember he started with just $4,000 at the beginning of 2017 and now has made $250,000 so he’s doing something VERY right!
By continuing to constantly learn, you’ll keep yourself relevant in the ever-changing world of trading. This can keep you moving forward confidently and successfully.
It can be easy to succumb to fear as a penny stock trader, but by reviewing this list, you’ll be able to ask yourself some powerful questions and consider some important things about your career that can help reduce fear and keep you moving onward and upward…and that’s what I want because as my Inc.com article outlined, I WANT MORE MILLIONAIRE STUDENTS!
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