Understanding Fear in Trading 

“Woof! Woof! Woof!”

It came loud like thunder out of nowhere from my neighbor's backyard while I was in my own backyard doing my morning qigong. I looked over and saw this large dog, leashed on the patio in my neighbor’s yard,that I'd And it was barking at me like crazy.

Keep in mind this was around 6:30 in the morning in a quiet residential neighborhood in East Austin. I realized I had two choices, and what unfolded ended up being a direct parallel to what many of us experience in our trading.

The Loud Bark of Fear

The first thing I felt was fear. I jump out of my skin anytime a dog barks loudly, and initial reaction was to flight, not fight. I could simply go back inside and finish my qigong in my house. 

But I love doing my morning qigong outside, feeling the wind on my cheeks, listening to the birds, watching the swaying trees and tall grass. It’s my Disney princess start to the day and I did not want to give it up. So I decided to keep going.

I got to my second exercise, and the dog barked again. 

That's when I realized something that happens in trading too. 

Facing fear isn't a one-time decision. It's something you have to recommit to.

Think about a time when you put a trade on a little earlier than you should have. The market moves against your position, you see that red flashing on the screen, and you feel that knot in your stomach start to form. That's fear of loss. That's fear of being wrong. 

Those are all normal reactions when you're a human being.

The key is that every time you see another tick move, you have a decision to make. Are you going to stand firm, or are you going to take a different action than planned?

If you decide to get out, there's nothing wrong with that. Just like if I had gone back into my house to finish my qigong, that would have been perfectly fine too.

Gann said, “When in doubt, get out.” What I believe he meant was to listen to your gut. If you have a really strong feeling that something is wrong, exit the trade.

I didn't have that feeling with the dog, so I continued.

Sometimes Fear Changes When You Stay With It

As I continued through my ten-minute qigong practice, the dog still barked, but less frequently. By the time I was halfway through, I looked over and he wasn't standing at attention anymore. He was crouched down, but now grumbling steadily, which honestly was almost scarier than the barking.

Then I started wondering if maybe this dog wasn't even that bothered by me. Maybe I had woken him up, he just wasn't used to seeing me. Maybe he was simply tired, like a cranky baby.

A dog on a leash in my neighbor's yard is one thing. If that same dog were standing right in front of me, that would be a completely different situation, a real threat.

That made me think about the fear that bubbles up in our trading. Sometimes it's just a raw instinctive reaction because our brains aren't wired for change or risk. They're wired to survive and protect us from threats, even when the threat isn't all that serious.

Notice those times in your trading when there's that rumbling of fear. It's that lingering, uncomfortable feeling that hangs around.

When that happens, you get to choose. Do you want to keep pressing on with whatever you're doing that's bringing up those feelings, or do you want to change course?

Even recognizing those different experiences of fear can be helpful. Sometimes your emotions really are warning you that something is wrong. Other times, you're simply uncomfortable with taking on risk.

Learning the difference takes time.

Give Yourself Time

The best part came near the end of my qigong practice. I looked over, and the dog was sprawled out on his patio, fast sleep.  So if it ever feels like your fear is barking at you in your trading, sometimes you just need to give yourself time to get used to the emotions, especially if you're a newer trader. It's very normal for emotions to bubble up. The important part is learning which ones are truly warning you about danger and which ones are simply discomfort with doing something that feels risky.

One thing that can really help is journaling your trades. Don't just write down where you got in and where you got out. Jot down how you were feeling along the way. When you review those notes later, you'll start to uncover patterns that are easy to miss in the moment.

As for me, you can bet I'll be back on my patio tomorrow morning for qigong, and every morning after that. I'm not going to let the barking dog stop me!

👉 PS — Four Zones Get It Done Weekend Starts Friday!

If you're a Four Zones RSI Coverage System student, I'll be working right alongside you this weekend. Here's what's on deck:

📅 Friday, June 26 → Get Ready Meeting | 12:00PM ET

📅 Saturday, June 27 → Four Zones RSI Get It Done Meeting #1 | 11:00AM ET

📅 Sunday, June 28 → Four Zones RSI Get It Done Meeting #2 | 11:00AM ET

Visit himareddy.com/events for full details and registration.

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