Fear is a natural feeling that people experience in all areas of life. Since forex is a somewhat risky business, all traders, whether they are beginners or professionals, should properly deal with their fears while trading.
Is it possible to completely eliminate this feeling and become a trader who does not have the slightest worry? It's not that easy. But there is undoubtedly a way to scale it down and learn to resist it and adapt to its presence. Fear itself is not that bad, but its effect on traders is what we are talking about here, crippling their ability to think and make the right decisions. But when you learn how to control your fears, more opportunities will become available to you.
There are several types of fears a trader faces. Let's learn together how to confront the two most prevalent types, especially among beginners.
Fear of losing
1- Don't risk what you can't afford to lose
2- Don't open too many trades at once
Especially when you are at the beginning of your career in the market. If you open a lot of trades, it will be difficult for you to follow them all. Thus, your anxiety level will increase. If the number of your trades is limited, you can focus more on them. Take a look at the video that explains position size and the basics of risk management to have more confidence! If you want to dig deeper in the field of risk management and securing funds, read about it in the forex guide that we have prepared especially for you.
3- Define your own trading plan, and stick to it. Train yourself to trade one of the basic forex indicators
A trading plan is essential. Your trading plan should be clear and well suited to you, and followed closely. That's all you need. If you have a clear and accurate idea of when to enter and exit a trade, it will be much easier for you to overcome your fear of making mistakes.
4- Customize a diary of your trades, and analyze it constantly
Make sure to keep a record of your trades in your trading diary. The goal of the trading journal is to build confidence in your trading system. When you trade with confidence, you can achieve good results. By taking detailed notes of your trade setup, entry and exit points, your emotions, you can analyze your strategy and your state of mind. In addition, this notebook helps you to manage your emotions, your deals, and everything you do in the market.
Fear of real accounts
This type of fear stems from the previous one: when the novice trader thinks of moving from the demo account to the real one, he begins to have fears and questions such as “what if I fail”. The demo account is very good for training and getting to know the market and the whole system, but of course it is different from trading in a real account.
The possibility of losing money causes anxiety, and therefore you have to learn how to control your emotions and emotions and overcome your fears to make sound trading decisions. Here are some tips:
1- Open a cent account
Of course, a cent account won't make you a millionaire, but it helps you test yourself and gain a sense of management and responsibility. If you are concerned, start with $50 instead of $1,000. It doesn't matter how much you invest here, but the results you achieve. If you are not able to trade $50 and stay in the market, you will not be able to trade $5000. If you're still anxious, try making some changes to try to work around it. If the risks are lower, you are better able to develop an effective strategy, and then withdraw your profits which even if they are relatively small, will undoubtedly raise your confidence level.
2- Hurry up, you can do it
It is simply a matter of overcoming your fears and taking the initiative. You need to make that decision. As the saying goes, the one who does not make mistakes is the one who does nothing. You may look at the market with some suspicion since you don't know it yet, but that's an incentive in itself! Start small, don't rush, develop your skills, and take trading step by step.
Create your own glory
Even the simplest victories are victories in principle, and there is no doubt that small changes ultimately lead to great results. The first step is to conquer your fears and keep them under control. Build your own trading strategy that fits your personality, lifestyle and time, and take all factors into account. Stick to your strategy and record everything you do to review as necessary, learn from your mistakes, and build on your success. Have confidence, and never deviate from the goal you set in your sights!
Face your fears and turn them into opportunities.
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