How to defeat the fear of trading Forex
No matter how scary the market, we will conquer it, because fear is the prerogative of the poor !!!
In the period of writing a series of scientific articles on the analysis of market entry and research of this problem in practice, I was offered to speculate on the topic of fear in trading and bring my point of view of this problem. The purpose of the article is to collect all the components of the fear of trade, what is really the problem of fear in the market and why some traders are afraid, while others bravely dive into the ocean of figures, instant changes, frantic trading rhythms and become winners.
Surely if you read this article, then you are interested in the market problems no less than the problems of your own health. This suggests that only highly educated people come to the market. It happens because these people know that one of the most profitable ways of existence is the creation of inexhaustible sources of income, which, in fact, is the currency market. However, the income received must be professionally invested. As you know, skillful financial management in international markets allows such an opportunity. So our professionals come to the market for further growth and multiplying their own investments. But as it turns out later, skillful investing at first glance seems to be a very easy task, but in reality it is not at all so. As soon as the trader makes several operations and closes with losses, he begins to understand that this slippery fish is not easy to hold.
Reflecting on the problem of successful trading and analyzing the actions of many people, I came to the conclusion that in fact there is something that the trader is afraid. Yes, I’m afraid, I will not be afraid of this word and it’s fear that is the source of the defeat. Overcoming fear is as difficult as it is to be the best among the best. Each of us is always looking for easy ways to solve problems and does not attach importance to such a phenomenon as fear. But in fact it is he who is able to force you to act, to force you to leave, to stop and think about your actions. The most interesting is that the fear is experienced by both professionals and ordinary traders, beginning and already proven investors.
Let’s give reasons why there is fear:
1. Fear of losing everything that a trader has, that is, saving.
2. Fear of criticism from relatives and friends.
3. The fear of poverty.
4. Fear of loss of reputation and authority among colleagues.
5. Fear of debts.
Each of these types of fear can trigger a corresponding reaction of the trader. Of course, if a person has a fear of one particular objective reason, this is one thing, but if he is afraid in all directions, then this is completely different, the more causes, the greater the power of fear, as a rule, this leads to a loss of confidence in itself and subsequent failures in life, and in particular, in trading.
If a person is able to overcome fear alone, this person is very strong, he knows what he needs and how to get it, then such a person to achieve the goal is much easier to get, and he understands and feels the advantage in relation to others.
As a rule, the bulk of traders come to the market to get money, and one of the biggest reasons for fear is the loss of the same money. Everyone who works in the market wants to get money, every trader makes a deal in the hope of this and every trader is afraid of defeat, but one of them, ultimately, suffers this defeat, and someone more successfully gets everything.
So, as scientists have noticed, fear always increases with loss and decreases with successful moments of getting out of the market.
Therefore, you can minimize your fears in the market only by minimizing unprofitable trades. As a rule, unsuccessful traders start shouting loudly that it’s impossible to make money on the market, while those who earn it probably silently make their profit by withdrawing and withdrawing the profit. They also experience the same fear as you, but they believe in themselves in any outcome of the matter.
I would like to propose a method of combating the fear caused by money riots. In order to minimize their fears it is necessary:
1. Monitor the market and trade on paper. Only with the constant analysis of each of your transactions and with an unsuccessful exit from the market, a systematic analysis of transactions, you can minimize fear, as you will psychologically prepare yourself not only for winning, but for losing.
2. It is necessary to invest in the market a minimum amount, which would not be very significant in terms of the loss, but if the transaction was successful, you could be proud of your success. For example, you can try to invest in the account the amount you earn in a month. The loss of this amount will not significantly damage your pocket, but it will be a serious motivation for working and studying the market and will give you substantial confidence, and it is known to suppress fear.
3. Minimizing fear can help education. Yes, it is knowledge that allows you to make several successful transactions and a few unsuccessful ones, so you need to constantly train to improve your level in trading.
4. Constant communication with successful traders. I think this list should be enough to overcome your fear at the initial stage. The main thing is laying the foundation in the fight against fear and then all by itself will pass, and you will feel a successful trader.
What people will say about you, that you will become poor, should not be taken to heart, because you can go bankrupt, but not become impoverished. Traders who work in the market are considered to be one of the richest people in the world and they are able not only to receive money, but also to give them. For example, Mr. Soros distributes money as a philanthropist. This is the art of living, enjoying work and rewarding others with success.
Become self-confident and enjoy life without fear of losing. After all, sooner or later you will win, because you want it.