Fear of a trader is the usual psychological response to the load when working with money. The stress from predicting and making decisions puts pressure on the speculator, making him nervous and afraid. Let’s talk about what traders are afraid of.
Fear is a natural emotion for a trader. Many traders are afraid to open a deal when they enter the market – they are afraid to lose money, do not close their positions, fearing to lose profits. Fear is one of the main enemies of the trader, and in order to overcome it, the enemy must be known in person. Let’s talk about the three most important fears of a trader.
FEAR OF LOSING MONEY
There is probably no trader who does not know that trading for high profitability pays high risks that can lead to a loss of money. Theoretically, everyone is ready for this. In reality, each loss received on deposit puts tremendous psychological pressure on the trader.
Having received several losing trades, the trader begins to be afraid to enter the market so as not to lose even more.
How to deal with this? For starters, you just need to refrain from trading for a while. And then a clear line should be drawn between large and small losses.
A small loss is a loss that you received when you closed the stop-loss order. This is the projected loss that you calculated and the likelihood of which you recognize. Loss of 1-2% of the deposit is a working moment, without which trading simply does not happen, so you should not be afraid of such losses.
But if you lose more than half of the deposit, there is already a reason to think about it. It is worth revising your money management rules, trading strategy, and trading plan.
To overcome the fear of losing money, you need to use only those funds for trading whose loss will not be critical for you. In addition, adjust the size of the initial lot so that closing a stop loss transaction is almost invisible to you.
FEAR OF A LOST TRANSACTION
Reading that every deal needs to be carefully planned, all traders nod their heads. When it comes to practice, then seeing a sharp increase in the price, the speculator forgets everything and tries to jump on the outgoing train, opening a deal, afraid to lose profit. Such a case ends, in most cases, at a loss.
Or another case. The trader missed the price rebound from the trend line, but in the expectation that the price will continue to move in the direction of the trend, he buys in the middle of the channel. Accordingly, take profit will be less, and stop-loss – more. Need I say what ends most of these deals?
No need to be afraid to miss a profitable deal today. The foreign exchange market is huge and there is always the opportunity to make money on it. It’s better not to make money today than to lose your money because you don’t want to miss an opportunity.
FEAR OF MAKING A MISTAKE
This fear is generated by self-doubt. No, the trader is not afraid to press the Buy or Sell button. He begins to fear when the deal is already open. “Is everything done right? Here, in an analytical article, another channel is drawn, and on the website, a banner with trading signals shows sales, but I bought … ” True, a familiar picture?
No need to look back at anyone. Everyone trades in their own way, and if your approach brings you profit, then there are no reasons for underestimated self-esteem.
Open a deal, place take profit and stop-loss orders, and forget about it. There is no need to sit at the monitor around the clock, hypnotizing the deal or begging her to go in your direction. This is a market, and everyone, even the great George Soros, suffered losses in trade. Do not read a lot of forecasts, you have all the necessary knowledge to plan the deal correctly. Believe in yourself, and you will succeed.