How can I get rid of the fear of not losing my profit in day trading? I am not able to fully ride my trades.
TRADINGFEATURED
"The approach you need to take is shifting to a probabilistic mindset"
You need to maintain an emotional balance so that you can be fearless in the market.
The approach you need to take is shifting to a probabilistic mindset.
If a coin is flipped, there is a 50/50 chance for either side to land on average for over 100 flips.
What we don’t know is in what order will the coin land on each side to reach this average.
The same thing goes with trading, we may have an idea of our win rate but never truly know which trades will become losses as part of our average return. So since there is no way of knowing this, we factor in risk to reward.
With a certain win rate, we need to have a risk-to-reward that coincides with how often we lose trades so that we can combat any losses we take and make ideally 3x or more times whatever we initially risk per trade.
When we focus more on this, we allow our system to play out and accept the true randomness of the market, and let our edges play out exactly as they should.
Credit: Quora