The Power of Trading Without Fear

I'm not talking about being foolhardy.  Fear is valuable; it keeps you from getting hurt.

What I mean by trading without fear is having the ability to try the same premise again, because it is still valid.  And having the confidence that you will not get badly hurt if it doesn't work out this time either.

Today, I believed that SPY was knocking on the door of 340.00 and was finally going to break through.  I traded this notion manually in Schwab and also with Trade Unafraid.

In Schwab, I bought Friday's 340 calls once, took a loss of $60 and lost my appetite to try again.

In Trade Unafraid, I actually played the same notion four times.  The first three times, I took small losses as price flirted with 340 but repeatedly failed to break it.  On the fourth try, it broke through, and the one gain was larger than the three losses.

Net gain of $38.

With small, controlled losses -- taken with the discipline of a machine -- I was willing to try this trade four times.  Trading it manually, I did not have that confidence and accepted the single loss that was over twice the size of any one of my automated losses.  I was not willing to make a second attempt manually. 

How often is your premise proven correct, but the market shakes you out before doing what you believed it would?  It happens to me all the time.  More than once, I've been able to make multiple attempts like today's SPY 340 trade using Trade Unafraid.  So far, it has always proven to be worthwhile and ultimately profitable.