Feeling fear while trading is normal, but it can hinder catching good market movements and consistently making profits.
Fear is a basic survival mechanism. Without fear, we would not be able to recognize danger and respond appropriately.
The problem with fear comes when we let the perceived risk of being stopped out or losing money scare us into making a decision that goes against good trading habits and our pre-determined trading plan.
Lack of confidence due to a series of losses may cause you to abandon your plan as well. Being haunted by Fear of defeat It can make it more difficult for you to “pull the trigger” even when you see a valid setup.
Lack of confidence may also manifest in other ways, such as closing a winning trade earlier than you should because you are afraid of losing the gain
Aside from worrying about potential losses,… Fear of success For some Forex traders, the fear of failure is no less harmful.
With success comes higher expectations. Take, for example, an athlete who runs one mile in less than six minutes. The athlete will likely raise the bar high in his next outing and try to surpass his performance.
This increases the pressure on him to perform better than last time. For some people, this is enough to stop them from trying, choosing to sit on their hands to maintain their original performance instead.
If you’ve missed the opportunity to pull the trigger on a setup you were accustomed to and then beat yourself up later for not making trades that could have been winning, you know what I’m talking about!
Another type of trading fear that you may have experienced is… Fear of missing out.
This kind of fear can cause you to enter at inopportune times – when the market has already moved too much. This, my friends, is what we call “chasing the market.”
Once you identify the source of your fear, make the necessary changes in your trading. In this way, you have turned your fear into room for growth and improvement.
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