Gil Blake has a routine of internalizing how he would feel given what might happen on the next trading day in The New Market Wizards: Conversations with America’s Top Traders.

My approach is to confront losses even before they materialize. I rehearse the process of losing. Whenever I take a position, I like to imagine what it would be like under the worst-case scenario. In doing so, I minimize the confusion if that situation actually develops. In my view, losses are a very important part of trading. When a loss happens, I believe in embracing it.

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By embracing a loss, really feeling it, I tend to have less fear about a potential loss the next time around. If I can’t get over the emotions of taking a loss in twenty-four hours, then I’m trading too large or doing something else wrong. Also, the process of rehearsing potential losses and confronting actual losses helps me adapt to increasing levels of risk over time.

Quote from an interesting article If you want to be rich, first stop being so frightened

• If you are unwilling to fail, sometimes publicly, and even catastrophically, you stand little chance of ever getting rich.
• If you care what the neighbours think, you will never get rich.
• If you cannot bear the thought of causing worry to your family, spouse or lover while you plough a lonely, dangerous road rather than taking the safe option of a regular job, you will never get rich.
• If you have artistic inclinations and fear that the search for wealth will coarsen such talents, you will never get rich. (Because you fear, in this instance, is well justified.)
• If you are not prepared to work longer hours than almost everyone you know, despite the jibes of colleagues and friends, you are unlikely to get rich.
• If you cannot convince yourself that you are “good enough” to be rich, you will never get rich.
• If you cannot treat your quest to get rich as a game, you will never be rich.
• If you cannot face up to your fear of failure, you will never be rich

Mark Weinstein have some advices for the beginning trader in Market Wizards: Interviews with Top Traders.

You have to learn how to lose; it is more important than learning how to win. If you think you are always going to be a winner, when you lose, you will develop feelings of hostility and end up blaming the market instead of trying to learn why you lost.