As commodities like silver, gold, oil and copper melted down last week, a lot of traders got hurt. Whether you were buying on the way down or just watching year-to-date profits melt away, you may be going through what we in the sport psychology world call a fear of re-injury.
Losing or getting hurt is part of playing, but when you get hurt really bad, you tend to shy away from future opportunities because you’re afraid of re-injuring yourself. That means you end up missing out on great trading opportunities. Don’t let your fears get in the way of your trading decisions.
Here are 3 things you can do to overcome your own fear of reinjury:
- Don’t personalize the situation. Remember, the market doesn’t know how much you’re up or down and it’s not out to get you or hurt you. In fact, it doesn’t even know you exist. And that can work to your advantage.
- Get back in the game. You have to start to rebuild, so put on some small trades and get back in the game immediately. It’s ok to be afraid. Don’t worry about winning or losing -- start to swing the bat again.
- Put the bat on the ball. Confidence is what you need to build so do what any great hitter in a slump does: put the bat on the ball. As a trader, that means focusing on a few trades and banking some small profits. If you swing for the fences right now, you’re just going to strike out.
Put these 3 strategies to work and you’ll get your head back in the game sooner rather than later.