1. The Psychology of a Trade Fairy An analysis of “Trade-Fairy Syndrome”…

2. Definition: A “trade-fairy” is one whose fear of losing money is so overwhelming that it overrides his specialized knowledge, technical skills, the pattern and the ‘big idea’ of the trade resulting in…actually losing money, or making very small (fairy-like) profits.

4. “Trade Fairy Syndrome” Making the Diagnosis: 1
“Trade Fairy Syndrome” Making the Diagnosis: 1. Trader presents with complaint of making small profits on good trading setups. 2. Trader complains of making too many scratch trades while his setup was correct and takes off for big gains. 4. Trader often complains of the “Flash Boys,” the “bastid market maker,” or that “hump stock” itself. 5. Trader often reports that he puts his stop immediately upon going green. 6. Trader may present in brightly-colored, effeminate clothing. 7. Trader is envious of others that traded the setup correctly.

5. A “Trade Fairy” will never get those coveted ‘all-day’ runs of a stock like AMZN or TSLA

6. Typical conversation with a Trade Fairy will go something like this… Trade Fairy: “Oh man, look at that…I got out with ten cents and it went up a stinkin’ dollar.” Coach: “Why did you get out?” Trade Fairy: “I was ahead so I didn’t want to lose.” Coach: “What was your exit strategy, Mary?” Trade Fairy:“I don’t know…I just didn’t want to lose.” Coach: “You need to grow a pair.”

7. “Careful you must be when sensing the future, Anakin
“Careful you must be when sensing the future, Anakin. The fear of loss is the path to the dark side.” Yoda

8. How does a trade fairy that is so fixated on not losing money… lose money? 1. Fixation on money and not the pattern. 2. Fear of loss is disproportionate to the probable gain in a well thought-out entry. 3. Forgetting that five-minute candles hold more information than the one-minute candle. 4.Forgetting that stocks always oscillate within their trend.

10. How to Combat Trade Fairy Syndrome 1
How to Combat Trade Fairy Syndrome 1. By focusing on the pattern and the big picture. 2. By selling some shares for a profit to satisfy the greed part of my mind. 3. Take less shares until you are man enough to trade right. 4. Trusting the pattern. 5. Trusting the trend. 6. Growing a pair. 7. Frontal lobotomy. 8. Testosterone injections.