This is a short excerpt from a YouTube video by Kosta Ouzas ("How Unrealized Profits Predict Market Tops") giving practical trading advice: the speaker argues that most fear in markets comes from not having a plan for what will happen if price moves against you, and that having a plan for both directions reduces fear and improves composure.
There's a reason we are so calm almost all the time in this market, because fear comes from not actually having a plan if what you want to happen doesn't play out. That's where fear comes from. Right. And there's a lot of fear because the way people trade is if price falls to this level, I'm going to lose, or if price goes here, I'm going to get liquidated, or if this happens, I'm in trouble. Well, when you have a plan for what can happen in either direction, that will cull a lot of the fear you experience, because for us.
