The "Anxious Trader"

I was perusing the great trading blog of Dr Brett Steenbarger. He identifies 4 problem traders, and I definitely see much of myself in the one he identifies as problem trader #2, the anxious trader. I am going to cut and paste from his blog, because this is a private blog. If somehow this becomes more public I would provide a link to his blog rather than copy it. Just be aware that this is his work:

The anxious trader is consumed with fears of loss, missing out on objective opportunity either by not taking signals or by sizing positions too conservatively. In a sense, the anxious trader is more concerned about not losing than about winning. This risk aversion can lead to analysis paralysis, as the trader waits for the perfect setup that never quite materializes. Sometimes the anxious trader is one who has been traumatized by prior losses. It's too painful to relive memories of those losses, and so the anxious trader exits positions too quickly and is too reluctant to get into positions. A very common feature is cutting profits rapidly out of fear of losing those. Signs of the anxious trader include muscle tension, worry, relief over getting out of positions (or away from the screen), and inability to trade reasonable size. The key strength that combats anxiety is confidence and an ability to accept loss as a natural part of trading. The techniques most helpful in combating anxiety include cognitive methods for replacing worry talk with constructive problem solving; behavioral techniques to calm oneself and reprogram stress responses; setting process rather than outcome goals; and regaining confidence by trading successfully in simulation mode and gradually building one's size.

The good news for me is that I recognized a while ago that one of my problems was my fear of being wrong. It can't be fear of losing money, because I am risking at times as little as $10 !! and almost never more than $50. I do get overanxious when I am in a position, and recently have gotten out WAY too quickly for way too little profit. But worst of all, I do not pull the trigger. That is my biggest problem: I am not trading enough! Today I saw the double bottom forming, I called it a double bottom, and I even recognized that I could buy it and set a very tight stop, so risk was minimal. I did not take the trade and watched NQ rally 50 points! This is the type of thing that is killing me! But I am making progress which is encouraging.