Confronted with a drawdown, a trader who comes from lack will stop trading or change methods or systems only to junk the new methods or systems at the next drawdown. Of course, I'm not saying a trader should stupidly keep doing what doesn't work. What I am saying is that a trader with a sense of abundance and a verified methodology won't crumble under temporary loss because she'll know she's simply passing through a difficult time that will end.

I'm not saying you should like loss. Winning traders don't want to punish themselves, but successful traders don't dread loss either because they know that whatever happens, they can make it back. The markets offer endless and plentiful possibilities for wealth creation.

Strangely enough, failure is often a necessary stepping stone to success. Those who are too fearful of failure may never get to the success they long for. Fear can lead us not only away from the thing we fear but also away from the thing we seek. Ironically, fear frequently leads us directly into the thing we fear. If we fear loss or lack, we can create it.

The reason fear can bring about what we fear is that we focus on the dreaded idea and supercharge it with strong emotion. Thus we act like a magnet for the thing we fear.

What underlies the fear of failure? Very frequently failure and the fear of failure are driven by a sense of scarcity of supply and/or personal unworthiness of riches-personal and financial.

So just exactly how does a sense of scarcity effect trading?

Scarcity can freeze a trader and keep her from pulling the trigger when she needs to get into a trade. Can keep her from ever trading. Can keep her researching, researching , researching until her time and money runs out and she still hasn't traded.