Dealing with uncertainty in trading

The desire for certainty doesn’t serve us.

Humans are hard-wired to crave certainty.

That’s one of the reasons we buy some types of insurance.

“What if…”

You can pay to remove that anxiety.

Fixed fee mortgage rates…

“What if…”

Pay a premium and no more what-ifs.

Breakdown cover, same thing.

But enter the trading world and there are some uncertainties you simply can’t remove.

“I want to be certain this trade will work”
“I want to be sure the strategy I’m using is good”
“I want to know that I’ll hit my trading goals this year”

All of those can never be guaranteed.

And that is why many people who come into this business leave quickly.

The lack of control kills them, they can’t handle the fact that some things will forever remain uncertain.

But that’s why the game is worth playing and the prize is so high.

Warren Buffet said that the best returns come from investments where the uncertainty is high.

More uncertainty = more potential.

We see this all the time in the market.

Uncertainty is worse for a market sentiment than certain bad news.

That’s human nature right there…

So, when you are next in a trade and feeling anxious about the uncertainty of it all.

Know this…

That is the game.

Embrace it, get comfortable with it, because most people can’t and that’s one reason why they fail…

If you can deal with it, you have a better chance than most.