When I counsel these fearful-trader types, I find it interesting that they actually visual themselves failing BEFORE they really ever begin trading. They also feel they have to prove themselves to their families, friends and society, and trading is how they are going to do this. Yet, they see themselves failing in the presence of all those to whom they are trying to prove themselves.

This type of fearful thinking creates stress and leads to emotional, fear-based trading. This, in turn, fuels the fear that creates additional stress and anxiety and usually leads to manifesting in reality what the fearful trader was afraid of from the beginning -- failure! The trader never gave him or herself a chance!

Our thoughts shape our beliefs, which create our reality. In trading, this phenomenon has profound implications. If we have nagging thoughts that we may fail, we create the seed that shapes our beliefs and manifests failure, all because we just think it.

Leave an opening in your mind where fear can gain hold, and, guess what, your fear becomes reality. What you fear even slightly has more chance of happening than the fear you confront to defeat. The reason for this is simple -- because this “low-level” fear is really, usually the fear you are most afraid of. Why? Because it is so frightening, you can’t face it and, instead, it is easier to deny it than face it.

Unfortunately, it remains forever at this denied “low level”, always in the “back of your mind.” You become comfortable living with this fear through your denial process, but, somehow, you always feel something holding you back, or your just can’t seem to break free. This “low-level” (but always present) fear you deny has a way of becoming powerful just by this very act of denial.

And, this type of fear remains in thought and, therefore, will have an impact on your beliefs and ultimately manifest itself as your reality. If you are a trader, it will sabotage you until your worst fear is realized -- failure.

Traders who experience thoughts of failure should not take them lightly. Instead, they must find out what is causing these thoughts and take action to nullify them. Traders who fear failure will ultimately fail. Traders who fear success will not succeed. If you have these thoughts, don’t trade until you deal with these thoughts openly, where they will be less powerful than if they were denied. You must confront them and remove their power, so they don’t occupy your thoughts.

You must deal with the fear of failing, or fear of success, and remove these fears from your thought process before you will be successful at anything you do. So, choose your thoughts carefully and protect them fiercely! Outside influences can and do affect what you think, much like garbage in equals garbage out.

Even something as harmless as watching the news regularly, with all its violence and dramatic, fear-filled stories, can, over time, create a fear-based belief system in the viewer. Compound this with violent movies and TV programming, and it is no wonder most people walk around looking over their shoulder and motivated by fear-based thoughts that, then, manifest themselves in reality.

This is why I say that you should protect your thoughts from manipulative, outside forces and, instead, focus your energy on wholesome, happy, fun thoughts, creating the life you want, not the life someone else wants for you.

However, it is also important to realize that you must be aware of and react to the risks of trading the financial markets. For example, many “positive thinkers” preach that, if you think ONLY positive thoughts and say ONLY positive affirmations, you will succeed. While this may be a good start, it falls very short of what is really needed.

You must live in full awareness. Let your positive beliefs lead you to take the action necessary to succeed. For traders to enter the financial markets blindly and start trading simply because they are thinking positive is to ignore the full spectrum of what is possible while trading the markets. You must acknowledge both sides of the coin, the good and the bad, and react with full awareness.

To react with only positive thoughts or anticipation of only positive outcomes would cause you to neglect to pay attention to risk control and, ultimately, would result in your going broke. On the other hand, to live in the fear of only losing will cause you to react with fear, anxiety, negativity and aggression, which is equally destructive.

In short, trading the markets with full awareness and the resultant pre-emption AND without fear, anxiety and despair allows a balance that manifests itself in a positive reality and creates a feeling of abundance and good will.

No matter what trading system you decide to use, you will not be a successful trader unless you trade from a mindset aware of all that trading the markets can mean but, still, anticipating abundance and enjoyment and acting without fear.

*Reprinted (and modified) with permission from Bennett McDowell