Trader Q&A #3

“Can’t Pull the Trigger – What to do?”

Trading Situation:  This is the number one dilemma traders’ face at least once in their career, and more.  Getting “blocked” emotionally to the point they go into fear, hesitation and uncertainty in all stages of the trade. Blocks effect entries, exits and can create havoc.  Many traders don’t even discuss them because they think they are the only ones with the problem when the realty is we ALL go through this. It is the number one reason so many drop out of the business, because they can’t gain control of this and sometimes feel they are going crazy.

Trader Background: Sam’s seems to be going well except for this one thing. With 5 years in the business the effect of this block is now taking its tole on the bottom line and ability to enter the trade.

Solution is designed to:

·        Create certainty

·        Gain trading control back

·        Reduce emotions

·        React in the trade when needed

Trader Comment: From Sam

“My question has to do with decision making and pulling the trigger. I have a good trading system with specific set ups and triggers and I have even figured out which specific hours of the day are the best to trade my system (I’ve narrowed it down to 3 hours a day). Yet, when everything comes together, I still cannot pull the trigger. I’m always looking for more confirmation, more certainty. I’m afraid I will lose. I’m told by others that I do this (over analyze and do not make decisions) in other areas of my life as well (decisions re medical procedures, buying tires for the car, etc.). How can I turn this trading challenge around? “  Sam from CO.

Comment:

Let’s begin by describing what's happening. You are describing the classic symptoms of an "emotional block" that 99.9% of trader’s experience and will continue to unless they get help. I do not say this for any reason but the fact this is the top challenge I hear in my coaching sessions.

Over analyzing trades and the need for more certainly is the defense mechanism your mind is in because of the fear that's being triggered. Analysis and uncertainly is the "effect" not the "cause" as you may have been told or think.

It's a natural reaction when the mind is in fear. It's searching and has the need to confirm that it's OK to do something that it thinks is going to result in pain. It's naturally trying to protect you from that pain, with the emotions of uncertainty, apprehension, fear and hesitation which, by the way, you have brilliantly and clearly defined: "I’m afraid to lose"

Each and every lose you have experienced has added to the power and strength of the block. A small lose has a small effect and doesn't cause much damage but as the small ones multiply they stick together or the amount of the loss increases the intensity also grows making the block stronger and stronger. The snowball effect. Now, for you, it's to the point where you are so very aware and sensitive it's stopping you from taking action. You can also clearly define the words that the subconscious is using as the trigger, for the fear and "protection mode" your mind is in. “I’m afraid t lose.”

The things that reinforce and strengthen a block are:

1) Repetition of the same experience over and over

2) Imbalance of trading wins to losses

3) The dollar amount of the loss

Our relationship to money determines the level of emotional intensity we feel when we experience a loss. Each of us has a different connection to money. One trader might not feel anything when they lose $1000, but if they lose $5000 that would make a difference and have a greater emotional impact.  Many traders come to me NOT knowing why they do what they do, yet they say they can't stop, because the block that's triggering fear is hidden in their subconscious. Yours is so strong and right out there in the open.

If you think back when you started the bad behavior, my guess is this was not happening or you had better control over it, but after five years time, repetition and the amount of your losses has snowballed the problem.

The big problem is "blocks" are insidious and difficult to remove with by yourself and it can take time. Most traders do not have the cash to survive the time it takes to fix them.

Other than getting coaching, which I highly recommend, here are some regular solutions you can work:

1) Create a "certainty check list - This is a list of signals your strategy is giving you, the more the better and use this list each time you go to take a trade.

2) Decide the entry point and place the order in the system to automatically fill, being sure you have calculated and placed a stop

3) Set a small goal to hit with a profit target order also in place (bracket orders)

4) Keep track of your trading results

5) At the end of the day write down what you did well and why this worked

6) Each morning re-read the good results over and over (we are working to convince the mind all is OK)

7) Check back on all the good trades - re-read them

8) Set tight stops for the day

9) Set easily reachable goals you expand over time - Example: Say $100 per day for 5 days in a row and after you hit $100 go into sim mode and expand to $150. The second week 

9) Go through the FREE presentation on the website, it gives more info on blocks.

Remember your primary goal is to "tip the scales" and have more wins than losses and create references in the mind in a winning direction.

If all that doesn't work you may want to consider coaching. There is a great technique

that will get rid of the block in a 45-min. session. Please refer to the "Blockbuster Package"

In the meantime go slow have patience and be careful, as you are VERY vulnerable right now.

Special OFFER to all traders: Since this is a common challenge for so many I will be running a special now through the end of AUGUST. If you mention this newsletter and article I will take $100. Off the current “Blockbuster Package” it will be the best money you will ever invest in your trading! So call today: 702-616-3744.