Fear of missing “the big one”

[Joe Ross]

This question was sent to me from one of our students: Hey Joe! My greatest fear in the market is that of missing a move. I just can’t stand the thought of missing “the big one.”

The best way to handle that kind of fear is walk away from the situation. Get up, and walk away from the computer and any news you may be watching. Remove yourself from whatever it is that triggered the fear. Do anything that will take you out of the fear/panic mode.

Don’t sit down to trade again, and don’t return to the markets until you have managed to achieve some emotional control over your fear/panic reaction. If you can’t get a grip on your fear, then stay away until you are back in control.

Most likely you will find that even if you keep thinking about the move you may be missing, simply getting away from the keyboard and monitor is enough to make a difference. It removes the demand to take action and gives you the mental space to gain perspective and let go of your knee-jerk reaction.

 

[wasp]

Hey Joe! I know I'm not a student of yours but seemed the right way to get your attention...

Just wondering why you don't stick around to discuss these posts you make?

 

[zupcon]

Hey Joe! I know I'm not a student of yours but seemed the right way to get your attention...

Just wondering why you don't stick around to discuss these posts you make?

Possibly because he’s far too busy teaching a bunch of moronic students who would appear to be of such limited intelligence that they cant even use Google to research basic information for themselves.

Or far more likely that he’s simply just far too busy spamming every trading forum in existance :cheesy:

I know he's a vendor, but you'd think he'd make at least an attempt to "play the game" and engage in a bit of debate, then again lets not encourage him

 

[dbphoenix]

He posted once upon a time that he doesn't post this stuff; his secretary does. So perhaps thinking of it as an article -- an extremely short article -- is the way to go.

In any case, the advice given seems rather shallow. If one is "afraid of missing the big move", rather than suggest that he walk away from the computer, I'd suggest that he sit himself back down and work out a trading strategy. Then he wouldn't have anything to be afraid of.

Of course, that wouldn't cost anything . . .

Db

 

[SOCRATES]

As it happens, I agree with Joe Ross.

His advice is very well suited to people who cannot control themselves.

 

[Joe Ross]

Hey Wasp

Hey Joe! I know I'm not a student of yours but seemed the right way to get your attention...

Just wondering why you don't stick around to discuss these posts you make?

Wasp the reason i don't stick around is because posts are made to a lot of different forums, and if I tried to answer all the people who reply, my whole day would be gone. Besides 200 emails/day, I also answer posts people make on our own forum. I do need time to trade and run our company which has has over a dozen full and part time people.

Our main purpose in making these posts is educate. I am trying to share some of the things I've learned and done in my decades of trading and teaching.

It's not that I don't want to respond, it is simply that I cannot respond.

Cheers,

JR

 

[CYOF]

There are some very good posts so far (on other threads as well as this one) - but as wasp rightly says they are never followed up.

This then can only leave the reader with one conclusion - it is a sales pitch - nothing more, nothing less.

I actually gave JR some of my hard earned money in the past - not directly - but through one of his assocaites called Alan Parry, for a personal Commodity Options Trading Excel Programme that he has developed. As part of this I also purchased 2 of JR's books. No problem with the material I received -I actually found it all very interesting.

My take on it is as follows:

Question everything you read and see - take what information you can from the posts that other traders make, no matter who they are - apply this new information to your trading if required (this may mean some further research and some demo testing with real live data) - if it delivers any positive results, fine, if not then move on and put it down to experience.

We all are masters of our own destiny - most traders will always want to "be shown" how to trade, not realising that no matter what they do, or who shows them how to do it, the end result will be 100% dependant on the way they think as individuals.

If this is the case (which it appears to be), then it may be wise for all traders to learn how to think correctly, instead of just concentrating on how to trade correctly.

As you have probably guessed at this stage, I am an avid admirer (and new practitioner) in the area of self improvement techniques involving the understanding of the human mind and how the way we think can actually determine our success or failure in what we are trying to achieve.

Think about it :cheesy:

Regards,

 

[rols]

There are some very good posts so far (on other threads as well as this one) - but as wasp rightly says they are never followed up.

This then can only leave the reader with one conclusion - it is a sales pitch - nothing more, nothing less.

I actually gave JR some of my hard earned money in the past - not directly - but through one of his assocaites called Alan Parry, for a personal Commodity Options Trading Excel Programme that he has developed. As part of this I also purchased 2 of JR's books. No problem with the material I received -I actually found it all very interesting.

My take on it is as follows:

Question everything you read and see - take what information you can from the posts that other traders make, no matter who they are - apply this new information to your trading if required (this may mean some further research and some demo testing with real live data) - if it delivers any positive results, fine, if not then move on and put it down to experience.

We all are masters of our own destiny - most traders will always want to "be shown" how to trade, not realising that no matter what they do, or who shows them how to do it, the end result will be 100% dependant on the way they think as individuals.

If this is the case (which it appears to be), then it may be wise for all traders to learn how to think correctly, instead of just concentrating on how to trade correctly.

As you have probably guessed at this stage, I am an avid admirer (and new practitioner) in the area of self improvement techniques involving the understanding of the human mind and how the way we think can actually determine our success or failure in what we are trying to achieve.

Think about it :cheesy:

Regards,

Perhaps you might follow up with a few examples?
How does one learn to think correctly? Define 'correctly' in terms of trading?
I presume you are NLP. I believe there may be a good demand for NLP trading mentors.

 

[damianoakley]

Hi All,

Actually, the fear of missing a big move might not be that unreasonable for certain traders.

If you are a long-term trend-follower for example (like the famous turtles), then you would be relying on one or two big moves each year to make or break your year.

I do agree though that this fear needs to be controlled, otherwise it could lead to over-trading.


Thanks

Damian

 

[Capital City]

Too right you better fear missing the big one.Or for that matter, any one. If you was trading my accounts I'd kick your ass if your attention was else where. The best way to handle that, is to make sure you do your job.

 

[CYOF]

Perhaps you might follow up with a few examples?
Will do as soon as I get a chance.

How does one learn to think correctly?
Not easy, I would say, but the first step may be in understanding that you may have to change your way of thinking/

Define 'correctly' in terms of trading?
For me, If I am able to make money, on average over a set period (or number of trades), depending on my trading style (as all styles will have different approaches and desired outcomes), then I am thinking correctly in terms of trading. If I can not make money - as above - then I will say that I am not thinking correctly.

I presume you are NLP. I believe there may be a good demand for NLP trading mentors.
No - I am just a normal person with a good deal of trading experience who has yet to achieve his goals - most of my experience has been acquired from dedicated hard work and sacrifices such as family and leisure time. My plan is to convert all of this hard work and dedication into positive results ASAP- Financial Independence -so that I may make up for all the times I was self centred and "hard to talk to".

Regards,

 

[TWI]

If you have a well structured system, then you should not miss anything, the greater challenge in my opinion is sticking with the plan when there is a string of draws.

 

[Mr. Charts]

"His advice is very well suited to people who cannot control themselves."

Ha ha ! Absolutely right, Socrates !

If you haven't got the self control and discipline to stand the heat of the trading kitchen, get out before it destroys you.
The problem is that people always want to go for the jackpot, go for gold, etc. It's the same mentality that thinks they mustn't miss buying their lottery tickets one week because if they did that would be the week they would have won. A gamblers attitude = death in the markets.
My personal opinion is that walking away is not the way to learn to control emotion.
Face your demons, fears, inadequacies - very little has been achieved by walking away from problems. True, they might occasionally disappear by themselves, but generally problems ignored get worse.
A problem = a situation that requires a solution, not running away.
If you are a newbie and have the overwhelming urge to trade for fear of missing out on "the big one", then remember that those big moves rarely come in singles, there are usually more.
Sit in front of your screen, physically SIT on your hands and tell yourself aloud, " I am not a junkie, I have self control, I am not a weak minded mass of quivering jelly, I am in control of myself........for no-one else can be. I am in control of my trading life and no -one else. I am responsible. If I do not control myself my self esteem and self respect will collapse and I will join the mass of inadequates and self haters.
Do I want to trade to take control of my own life? If so, TAKE CONTROL NOW, DON'T RUN - YOU CANNOT HIDE FROM YOURSELF."
Tell yourself those things out loud whilst sitting on your hands.
It works.
Richard

 

[Mr. Charts]

As a soldier, running away from the battlefield because of emotion when not facing defeat, is hardly going to make you into a good soldier - and will actually ultimately reduce your chances of survival and success.
Not rocket science.........
Richard

 

[dolton]

There are some very good posts so far (on other threads as well as this one) - but as wasp rightly says they are never followed up.

This then can only leave the reader with one conclusion - it is a sales pitch - nothing more, nothing less.

I actually gave JR some of my hard earned money in the past - not directly - but through one of his assocaites called Alan Parry, for a personal Commodity Options Trading Excel Programme that he has developed. As part of this I also purchased 2 of JR's books. No problem with the material I received -I actually found it all very interesting.

My take on it is as follows:

Question everything you read and see - take what information you can from the posts that other traders make, no matter who they are - apply this new information to your trading if required (this may mean some further research and some demo testing with real live data) - if it delivers any positive results, fine, if not then move on and put it down to experience.

We all are masters of our own destiny - most traders will always want to "be shown" how to trade, not realising that no matter what they do, or who shows them how to do it, the end result will be 100% dependant on the way they think as individuals.

If this is the case (which it appears to be), then it may be wise for all traders to learn how to think correctly, instead of just concentrating on how to trade correctly.

As you have probably guessed at this stage, I am an avid admirer (and new practitioner) in the area of self improvement techniques involving the understanding of the human mind and how the way we think can actually determine our success or failure in what we are trying to achieve.

Think about it :cheesy:

Regards,

Reading as much about trading as can be handled is IMHO probably one of the most important determinants to developing a non-loss making trading habit.

As likely as not, this together with actual trading [not paper trading] and assuming the funding bucket does not run dry over a period of time say 3 - 5 years will help in the conditioning of the mind to an almost conscious style of trading best suited to ones personality.

Thus will come the discovery that indicators are just that, can fail to deliver when most needed and at best are peripheral to ones trading!

Let me see now:-

Some of the stuff I have read :-

"INDEXIA STUFF" J dU p [Loads of stuff supplied with their trading software]
"THE MASTER SWING TRADER"
"THE WAY TO TRADE"
"HOW CHARTS CAN HELP YOU IN THE STOCK MARKET"
"TRADING CHAOS"
"THE MATHEMATICS OF GAMES AND GAMBLING"
etc etc

What have I got from all of this stuff? a bit from each I would hope , when John Piper was making it big, he was an advocate of trading spikes, Bill Williams discussed the five levels of trading, together with "belief systems", "how the body structure effects your trading" " the elliot wave" fractals" and the "market facilitation index" etc I found the most use for the "Master Swing as a door stop, due to its size you understand!!

I am now a great believer in the KISS edict, and find the inspection of individual Bars and inside Bars - much of what Joe Ross teaches suits me fine..........but I do keep a weather eye open on all the other stuff........

 

[Capital City]

"His advice is very well suited to people who cannot control themselves."

Ha ha ! Absolutely right, Socrates !

Well, youve got the first bit correct. So 1 out of 3 is a start. What I note already is the overwhelming B.S. touted as knowledable know how from so called trading coaches teachers etc. You need the depth of knowledge,expertise on your subject ,from this you then need to teach your students the nature of the subject ,from which the student then begins to question.

And thats not rocket science either, any teacher would ,sorry, should know this to get the best out of his students in order that they themselves ultimately become knowledgable on the "subject matter" being taught So why is it lacking on not only the teaching front, but also the teachers own knowledge base.?

Ignorance. Meaning opportunity to learn .

 

[CYOF]

Reading as much about trading as can be handled is IMHO probably one of the most important determinants to developing a non-loss making trading habit.

Agree- not to mention the time wasted which can be put to better use. But there will come a time when you read or see something of value - the key is to be able to quickly distinguish between what is relevant in relation to what you are trying to accomplish

As likely as not, this together with actual trading [not paper trading] and assuming the funding bucket does not run dry over a period of time say 3 - 5 years will help in the conditioning of the mind to an almost conscious style of trading best suited to ones personality.

Disagree - a trader does not have to loose money in order to become successful, although the majority of traders actually do. If you believe that you have to loose money, as is the common theme put across by most, then you will more than likely do so. Just because the majority do in no way means that you have to.

Thus will come the discovery that indicators are just that, can fail to deliver when most needed and at best are peripheral to ones trading!

Agree - no indicator will guarantee anything - the only thing you are guaranteed of in the markets is that you will loose money - due to the spread and commissions - but it is entirely up to yourself as to how much you will loose (during normal market behaviour).

Let me see now:-

Some of the stuff I have read :-

"INDEXIA STUFF" J dU p [Loads of stuff supplied with their trading software]
"THE MASTER SWING TRADER"
"THE WAY TO TRADE"
"HOW CHARTS CAN HELP YOU IN THE STOCK MARKET"
"TRADING CHAOS"
"THE MATHEMATICS OF GAMES AND GAMBLING"
etc etc

What have I got from all of this stuff? a bit from each I would hope , when John Piper was making it big, he was an advocate of trading spikes, Bill Williams discussed the five levels of trading, together with "belief systems", "how the body structure effects your trading" " the elliot wave" fractals" and the "market facilitation index" etc I found the most use for the "Master Swing as a door stop, due to its size you understand!!

There is a popular study method called SQ3R -the first part stands for SURVEY. You should always be aware of what you are going to read (in relation to study / learning) and then decide if the information is relative to what you are trying to learn. If you are not sure of what you are trying to learn, and why you need to learn it, then it may be time for some serious thinking.

I am now a great believer in the KISS edict, and find the inspection of individual Bars and inside Bars - much of what Joe Ross teaches suits me fine..........but I do keep a weather eye open on all the other stuff........

If this is what works for you, then that is what you should do. This is no guarantee that the KISS approach will work for someone else.

Regards,

 

[andycan]

trading is a bit like our bus service
it maybe early or late but there is always one on its way

 

[CYOF]

Well, youve got the first bit correct. So 1 out of 3 is a start. What I note already is the overwhelming B.S. touted as knowledable know how from so called trading coaches teachers etc. You need the depth of knowledge,expertise on your subject ,from this you then need to teach your students the nature of the subject ,from which the student then begins to question.

And thats not rocket science either, any teacher would ,sorry, should know this to get the best out of his students in order that they themselves ultimately become knowledgable on the "subject matter" being taught So why is it lacking on not only the teaching front, but also the teachers own knowledge base.?

Ignorance. Meaning opportunity to learn .

This is the best post I have read in a long time - not because of the tone, but because of the simple real truth in every word.

Edit - Does anyone know why Capital City is banned?

 

[Charlton]

This question was sent to me from one of our students: Hey Joe! My greatest fear in the market is that of missing a move. I just can’t stand the thought of missing “the big one.”
.

The market is emotion-neutral, zero-sum emotional. It delivers information, to which traders attach their emotional baggage.

If we respond to it in the correct way we remove all emotional content and leave ourselves free to respond to its flow.

If you miss a bus just get on the next one that is likely to go in your direction. If you get on the wrong bus, get off and take another one that's going in the right direction

Charlton