TRADING PSYCHOLOGY
Stage Fright?
Deep Freeze
by Adrienne Toghraie
Having trouble pulling the trigger? Stop it right now!
At a recent professional basketball game,
a 14-year-old girl was preparing for a great honor. She had been selected
to sing the national anthem in front of a large and enthusiastic audience.
Instead of experiencing the thrill of a lifetime, however, she froze, suddenly
unable to remember the lyrics. Seconds ticked by, with the humiliation
and embarrassment sweeping over her adding to the whirlwind of fear that
consumed her. Then, Maurice Cheeks, the coach for one of the basketball
teams, appeared at her side and started to sing, encouraging her to follow
his lead. This kind and courageous man coaxed her out of her fear and she
managed to finish the song triumphantly.
Just as this girl was gripped with fear at the very moment she needed
to be performing her best, traders frequently find themselves freezing
at the moment when they should be trading their best. Instead of pulling
the trigger to take that trade or exiting at the predetermined stop, they
freeze. As a result, they stand by helplessly as a tremendous opportunity
passes them by or their losses pile up into a financial catastrophe. Afterward,
filled with remorse, guilt, and self-recrimination, they search for the
reasons for their failure.
...Continued in the February issue of Technical Analysis of
STOCKS & COMMODITIES
Excerpted from an article originally published in the February 2004
issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights
reserved. © Copyright 2004, Technical Analysis, Inc.
Return to February 2004 Contents
