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The consequence of experiencing fear and anger on a fairly consistent basis is doubt. When we experience doubt, we also experience indecision. A trader who is experiencing indecision will hesitate to "pull the trigger" and enter the market. |
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Doubt is a thought that questions the possibility of an outcome being realized or the validity of a belief. A trader whose particular belief about the market is repeatedly violated will begin to doubt that the belief is valid. In addition, the trader will begin to question if sought-after profits will ever be realized. |
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Traders who are experiencing doubt feel uncertainty, distrust, and disbelief. The uncertainty arises because they are no longer certain of the outcome. Uncertain of the validity of their thoughts or beliefs, they will come to doubt their actions. The feeling of distrust usually arises because their faith in beliefs and skills that can lead to an expected outcome is in question. In addition, they may distrust the intentions or abilities of others. In other words, traders experience distrust because they begin to question the validity of their beliefs, abilities, or goals. The feeling of disbelief arises because traders are experiencing astonishment that the event or the action of the market even occurred. The disbelief stems in large part from their inability to accept that the market is behaving the way it is. |
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Doubt originates in both our conscious and unconscious mind. When it originates in our unconscious mind, it is usually based on our intuitive sense. That is, the unconscious mind senses that something is not quite right with the picture being presented to our conscious mind. When doubt originates in our conscious mind, it is usually because the part of our mind that controls critical thinking abilities is questioning either our beliefs about the event or the event itself. That is, we are using preexisting knowledge to critically think about the overall validity of our beliefs. |
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Often we experience doubt when we lack certainty or lose trust in ourselves or others. Very often the more fear we experience, the more doubt we experience as well. Traders who experience a series of severe losses after laboriously devising a trading methodology are typically astonished that the losses could even take place. They are amazed at the action of their methodology and the market. This feeling of astonishment is a sense of disbelief, which will in turn create even more uncertainty about producing consistent profits. Often this disbelief will cause traders to distrust their abilities to perceive the market correctly and the validity of their beliefs. |
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When the doubt becomes overwhelming, traders will often stop pursuing the goal of increasing their equity by trading. |
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