“What are you afraid of?”
JC posed this question to me yesterday on the Morning Show.
For context, he was asking me about our upcoming 21-day trip to 8 cities in Southeast Asia.
I might have surprised myself when I quickly and confidently answered: “Nothing.”
And I meant it.
I’ve actually been thinking a lot about this topic lately.
“Fear” is such a powerful and loaded word. It toys with our emotions. While often protecting and keeping us safe, our fear-stoked emotions also can trigger us into making poor – and sometimes awful – decisions.
All our best-laid plans go out the window when fear takes over.
Franklin D. Roosevelt, the 32nd President of the United States said it best: “The only thing we have to fear is fear itself.”
This is doubly true for traders. We need to do everything in our power to keep our positions or portfolios structured so that nothing can scare us. Because when we’re scared we lose all sense of control. We lose rationality. We lose perspective. And then we either rush prematurely for the exits or worse, double down on our mistakes.
We need to fear “Fear.” [Read more…]