Controlling emotions and overcoming fear is probably the most difficult task a forex trader has to accomplish. Fear could often paralyze you into a state where you experience an unsteady thought process and probably end up taking some of your worst trading decisions. When you let fear overcome you, forex trading turns into a nightmare. Here are some of the worst fears a forex trader could possibly have.
The Fear of Losing
When you get bogged down by the fear of losing your investment any progress in your trading career reaches a grinding halt. To override this, you have to start embracing your fear. Try to look at the positive side of fear from which you could be benefitted. Fear will spur you to trade with proper plans and implement tighter stop losses to avoid the unfavorable. It is just that you have to start creating a proper balance between fear and yourself.
The Fear of Missing Good Opportunities
The market is constantly volatile and your mind is already worked-up and asking you: “Is this the right time to open a trading position?” As a trader, you cannot expect the market to spoon-feed you with opportunities, you should be able to assess the perfect trade by analyzing the market scenario. Remember that a low frequency & high-quality trade strategy is a good option to consider. Do not be under constant pressure and do not try to enter a multiple number of trades. Wait for the right opportunity and make absolute use of it.
The Fear of Taking Wrong Decisions
A wrong trading decision could end up incurring losses. You lose your confidence and the ability to make decisions. But you need not worry much because your stop loss would close the trade immediately making the loss smaller and something which you can afford to lose. Learn to accept small losses in trading to prevent costlier mistakes and hence heavier losses. It’s okay to be wrong sometimes. Avoid repeating the same mistakes. A bold initiative will go a long way and will help you defeat your fear.
Fear can sometimes be used as an advantage or impetus that helps you to take wiser trading decisions. So instead of running away from fear, try to overcome it and go a step ahead by bringing out its positive side. Identify the cause of your fear and analyze the positive & negative effects. Take fear in your stride and make smarter decisions to attain consistent success in your forex trading career.
