LOGOUT  |  MY ACCOUNT

HOME
BoxingSubscribeMagazineReal EstateCareersColumnsDiversionsDirectoryEventsClassifieds

LATEST NEWS

SIGN UP FOR
MORNING CALL
Enter your e-mail address to get top trader
business & lifestyle news via email...

Trader
Monthly's Women in Trading
As algorithms transform trading,
women are leading the Quant revolution.

Black
Monday
We’ve detailed one of the darkest days in history —
in the words of those who lived it.

TraderTV
Videos of Trader Talk, our Wall Street Boxers, our
events.

Trader
Bowl 2007
Battle for Wall Street bragging rights and Super
Bowl tickets.

CAREERS
Company: The Hagan-Ricci Group

Position: Fixed Income/Rates Algorithmic Trader – NYC
City:
New York

EVENTS
AlgoFX 2007

AlgoFX 2007 is the only industry event addressing the latest in
Algorithmic trading and electronic connectivity for the FX asset class.

Date: Dec 4
City: New York
READ MORE

CLASSIFIED
ULTIMATE
2628SF CONDO LOFT!!!
85 North 3rd Street, Apt.501-502

Price: $2,102,000
City: Brooklyn
READ MORE

POLLS

Would you compete in a charity
boxing
event?
Yes
No

« Jr. Trader

This is your posting: make changes
here

The Fear Factor

Dr. Alden Cass advises a
trader paralyzed by fear

A trader seeks help: "I am more afraid of losing money than I am of not
making that much. I am trading from a position of fear..."

Dr. Cass:

Hello. I have been a prop trader for a few years at a firm downtown. I
am surviving, but not thriving.

I went into this business to be successful and wealthy, as I was at my
previous profession. It seems clear that I am not thriving because of a
number of issues. For one, I am more afraid of losing money than I am of
not making that much. I am trading from a position of fear, not a
positive, confident, winning attitude.

Basically, my mental game needs work, and I need help doing this work.
I also am having a hard time finding a system that will provide me with
consistent results. Hopping on the train of chasing random rewards is
killing my consistency. I am running out of the energy to "keep coming
back" for a new trading day after continually watching myself sell or
cover right before the big move, or just miss it entirely knowing it would
happen.

I read your column in Trader Monthly magazine. Can you help me
figure out how to overcome these issues that are holding me back from
achieving true success?

-- Scared Stiff

Dear Scared Stiff:

As you know, prop trading is not for the faint of heart. Many newbie
prop traders fear losing their rent money and, as a consequence, fall into
the trap of trading from a position of fear -- a phenomenon I call
"trading with your wallet." Thankfully, you have past successes (and
earnings) to cushion your trading.

Still, good traders must be willing to risk losing a great deal of
money in order to make money. If you can not or will not make this
investment, you will stress yourself out, pull out of trades prematurely,
and bring home peanuts at the end of your trading day.

If you believe in your original theory about a trade or if you have a
rigid and disciplined system working for you, stick to it. Let the money
ride. This is a game of risk, and you can’t make money unless you can
confidently stare off into the abyss and deal with the uncertainty of
making a trade.

As for your comment regarding "chasing" random rewards, I would
definitely advise against that strategy. Why not focus on one sector about
which you are knowledgeable and become a specialist? There is nothing more
powerful than feeling as if you have an edge in following particular
stocks or a particular sector. You can learn the trends and patterns so
that, when they repeat themselves, you will be the first one to notice a
potential move.

Stay focused, do your research and remember that chasing rewards has a
low probability of success over time.

-- Dr. Alden Cass

Please submit your questions to Dr. Alden Cass at

.

Dr. Alden M. Cass, President of Catalyst Strategies Group, is a
licensed clinical psychologist who works with traders and risk managers to
help them achieve financial, corporate, and personal goals. See full profile, or
visit his website, http://www.catsg.com/

alden cass

7/26/05

Scan this blog:

Next post » I Ain't Callin' Her a
Gold Digger...

Previous post « Ask the Doctor

Copyright © 2007 Doubledown Media, LLC. All rights
reserved. Trader Monthly, 240 West 35th Street, 11th Floor, New York, NY 10001

About Us | Advertise | Advertisers Directory | Subscribe | For Marketers | Contact Us | Customer Service | Terms &
Conditions
DOUBLEDOWN MEDIA NETWORK: CORPORATELEADERDAILY.COM,DEALMAKERDAILY.COM, PRIVATEAIRDAILY.COM, TRADERDAILY.CO.UK

traffic