There’s no factor that threatens every Forex traders’ ability than fears do. In fact, fears can sum up all the risks associated with trading but what I must tell you is that every good thing that you’ve ever fancied is on the other side of fear. This leaves you with two options of either to fight fears or to look for any exit and flee away from the perceived fears. In case I haven’t said it before, I’ll say it now that 80% percent of your trading prosperity depends on trading psychology and not trading knowledge. In fact the ignorant knows no fears.
Fears can manifest in various ways in traders’ lives, some traders are so afraid of economic news releases while others fear other things that I’m about to discuss with you. You shouldn’t be worried about your fears as this article is going to give the way forward on how to fight fears and survive.
- Fear of witnessing your profits convert into losses
This is the part that affects nearly all the market traders who feel that they rather walk out of trade with the little than wait for all or nothing. The worst thing is that most traders with this habit equate their net value with their self-value so they feel comfortable with the small. You’d hear them argue that at least they’re not greedy but you’ll agree with me that the market requires patience.
My advice is that you need to stay in the market whether you’re making profits or not as long as there are no clear indications that the trend is going to end soon. Remember, patience pays. For the short-term trade, I’ll agree with you that it’s better to take what you’re assured of than waiting for what might not come. But, it’s important to stick to your trading plans if they work.
2. Fear of not being perfect
Many traders want to be always right about their speculations about the market. This is something that makes them hesitant to join the market when they should for the fear that the market might prove them wrong.
My advice to such traders is that egoism cannot take them anywhere in the trading world and they’ll see many trading opportunities just pass under their watch. In truth, even top economists can never be right always so what about you? You need to do your analysis and when convinced about making entry into the market then you should.
3. Fear of missing out
I’d call this greed or addiction. There are traders who are skeptical about joining trade but when they see the market turn out their way, then they feel like joining at any point. All they want is to be part of the loss or part of the profit making.
When a glorious trading chance passes you then the most honorable thing is to wait for the next one because there’ll be plenty of them.
4. Fear of losing trades
This is now the biggest fear in this market that won’t let you progress. I know it’s not easy to get money but when you come to the market you must be prepared for any outcome that might come your way. You don’t need to fear anything and the options are narrow; you can either go hard or go home. This fear can ignite a condition known as analysis paralysis where a trader can’t make any trigger even when there’s opportunity to.