The Spiritual Side of Trading

Fear, Feelings of Inadequacy —
Lack of Courage or Self-Confidence

As a trader, what kinds of fear do you have? Are you afraid of losing money? Are you afraid you will miss a move? Are you afraid of losing face? Are you afraid to face who you really are? Are you afraid of disapproval by your mate, relatives, or friends? Are you afraid that trading is sinful?

The Bible has a lot to say about fear.

"An anxious heart weighs a man down..." (Proverbs 12:25, NIV).

We regularly hear from traders whose fears place them in a state of anxiety. Traders constantly send us questions and statements that reflect their fears. Perhaps you do not realize the many ways that fear expresses itself. For example, a question we frequently receive is: "Can I make a living trading?" Now turn that question around and it really says: "I'm afraid I might not be able to make a living as a trader!"

Sometimes the fear is expressed as a statement: "A good trade comes along and I can't make a decision. I sit there paralyzed." Turn that statement around and it says, "I'm afraid to make a decision that could end up hurting me."

Take a look at some of the questions we receive. Then turn them around and you will see the fear, anxiety, and doubt. Here are two more examples:

Go ahead! Try it with these other questions and statements that derive from fear.

Questions that come up:

Statements that arise:

I could go on and on with these, and I'm positive I didn't list many that you can think of. What I want to concentrate upon here is what the Bible says about fear and, most of all, how the Bible says you can cure it.

One wholesome and constructive way to deal with fear is to look to God for deliverance from your fears.

"I sought the LORD, and he heard me, and delivered me from all my fears." (Psalm 34:4).

What this is saying to those willing to believe it, is that if you seek God in prayer and tell Him your fears, He will help you to see from where they are derived. God will not just simply remove them; rather, He will reveal to you where your fears are coming from, including the flaw in your character that allows you to be afraid, or the emotions you are suppressing that are holding you in bondage to fear.

"Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds...." (Philippians 4:6-7).

The quote above is actually a formula for getting rid of fear. But there are other things you can do. Elsewhere the Bible says that pride precedes a fall. So you must avoid being prideful in your trading. Check it out:

"Humble yourselves, therefore, under God's mighty hand, that he may lift you up in due time. Cast all your anxiety on him because he cares for you." (1 Peter 5:6-7) (Also see Psalm 55:22-23)

The possible causes of anxiety and fear are many: conflict, health problems, dangerous situations, death, unmet needs, spiritual problems, false beliefs, etc.; but for traders, it is the action of price movement that brings about the greatest amount of anxiety and fear.

According to the Bible, there is nothing wrong with realistically acknowledging and trying to deal with the identifiable problems of life. To ignore danger is foolish and wrong. But it is also wrong, as well as unhealthy, to be immobilized by excessive worry. Such worry must be committed in prayer to God, who can release us from paralyzing fear or anxiety, and free us to deal realistically with the needs and welfare both of others and of ourselves.

Here are some general, common sense suggestions for those weighed down with fear, anxiety or worry:

LAWLESSNESS IN YOUR LIFE — Sometimes fear and anxiety are the result of your own failings and guilt. If you have committed a wrong or done anything bad, your fear and anxiety is probably from God and your own conscience trying to get your attention. You need to make some changes, confess to yourself and to God what you've done wrong, seek God's forgiveness, and set it right. There is a balance in this. God is a loving and forgiving God, although He is also a righteous God. If you have been raised in a "hellfire and brimstone" "God is going to get you" religious atmosphere, you may need to study the Bible to discover the true nature of God. You may be carrying around an unnecessary burden of guilt (leading to fear) trying to atone for your own sins instead of turning them over to God in faith.

SLEEP — Humans generally need 7 to 9 hours of sleep per day. Sleep deprivation can increase anxiety. Get enough rest. If you cannot sleep, you may need to seek God's help, and perhaps that of a health counselor or a physician.

BE MORE REALISTIC — Many people are worried and anxious about events that will never actually happen to them. Relax. Focus on today. Take life one day at a time. Take your trading one trade at a time. When trading, focus your attention on the "now." Do not become distracted by thoughts of other things.

LISTEN — to relaxing, soothing music. There is some great music available, classical and modern, that can help you focus on God and leave your fears and worries behind. It may also help to listen to uplifting, encouraging speakers and teachers.

FUN — If at all possible, do something that you enjoy. It is good to get some recreation on a regular basis. Take a break. Get your mind off your fears and worries, and have some fun. Get away from the markets and your trading screen. Don't become a day trading zombie glued to a computer screen all day. Get a life!

TALK TO SOMEONE — Don't hold all the anxiety inside. It can be a big relief to share your fears and worries with someone else — a spouse, a friend, relative, pastor or counselor. If fear and anxiety are ongoing problems in your life, schedule a regular time each week to talk with someone. That someone can also be God.

TAKE ACTION — If there is something practical and wise that you can do to alleviate the problem or avoid needless danger, take action. Don't put it off. Procrastination will generally raise your anxiety level. Also, regularly spend some time being concerned with other people's problems, especially those of family, friends, and others in the community. This can often help other people, and give you a sense of perspective on your own problems.

EXERCISE — Medical studies show that exercise can help lower anxiety. If you are healthy enough to exercise, try it. Regular brisk walks, running, swimming or other exercises can be real stress reducers.

PROFESSIONAL HELP — There are various organizations which provide help for people with anxiety attacks, including the Midwest Center for Stress and Anxiety (stresscenter.com) which provides self-help. You can search for information and assistance on the Web using keywords such as: anxiety, panic attacks, agoraphobia. You should be able to find local help by consulting your pastor or physician.

GOD'S METHOD FOR GETTING RID OF FEAR — The Bible states that LOVE drives out fear. How can we apply this simple statement to our trading?

On the human level, the only way you are going to "love" anything is if you receive goodness and kindness from whatever it is you learn to love. Love is something learned through positive experiences.

However, most aspiring traders do not experience kindness from the markets. Instead they are treated rather cruelly. Losses hurt. Loss of face and loss of money lead to a loss of confidence, both in one's self, and in what you are doing. Therefore, the only way you can learn to love trading the markets is to make sure you have positive experiences with them. What is needed is the courage that comes from conviction.

Courage of conviction requires patience and diligence. The Bible says, "The hand of the diligent makes him wealthy." But what do we see among aspiring traders? We see exactly the opposite. Instead of patiently and diligently searching for what truly works, wannabe traders rush into the markets. They are in a hurry to "make money." How many do you know who are willing to sit quietly and study the markets for perhaps as much as a year, searching to figure out how it all works?

By searching, I don't mean reading lots of books, some of which tend to present the agenda of someone who never actually made it as a trader. By searching, I don't mean sitting for hours backtesting with some indicator. At best, all you can learn from playing with indicators is how the indicators work. What you really need to know is how the market works. You need to know what causes prices to move.

Studying the market itself will eventually bring understanding. Understanding will, in turn, bring success. Success will bring rewards, and suddenly the market will be to you what it actually is: an impersonal arena in which those with understanding get paid to trade. With understanding, you will trade wisely. With understanding, you will see how simple trading can actually be. With understanding, you will garner money from the markets. With the successes you have in the marketplace, you will develop the courage of your convictions. Because trading will give you pleasant experiences, you will begin to love trading; and with love you will no longer have fear.

However, don't confuse love with addiction. Many traders who are often losing, having one bad experience after another, often for many years running, say that they love trading. What they really mean is that they have an addiction. The addict may hate what he/she does. But they cannot stop what they do because they are addicted to their habit. The addict lives in fear, often admits hating the habit, but continues to engage in the addictive behavior despite the fear and pain it brings. If that is you, there is a source of help — help from a power greater than your own. You will find that power and help when you seek God. The Christian Bible says it this way:

"Now may our Lord Jesus Christ Himself, and our God and Father, who has loved us and given us everlasting consolation and good hope by grace, comfort your hearts and establish you in every good word and work" (2 Thessalonians 2:16-17).

What the Bible says about:

 


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Joe Ross, creator of the Ross hook, has written 12 books about futures, spreads, options, and stock trading. He has almost 50 years of trading experience. In addition to his own trading, he teaches traders through his newsletters, seminars, and individual tutoring.