Trader's fears
Fear is a natural emotion for a trader. Many traders are afraid to open a trade when they enter the market - afraid to lose money, not to close a position for fear of missing out on a profit. Fear is one of the main enemies of a trader, and to conquer it, you have to know your enemy. Let's talk about three of the trader's biggest fears.
Fear of losing money
Probably there is no trader who does not know that the increased profitability of trading is paid for by the high risks that can lead to the loss of funds. Theoretically, everyone is ready for that. In reality every loss made on the deposit puts enormous psychological pressure on the trader.
Having received several losing trades, the trader becomes afraid to enter the market in order not to lose even more.
How do you deal with it? To begin with you just need to refrain from trading for a while. And then you should draw a clear distinction between large and small losses.
A small loss is the loss you made when you closed the order at the stop loss. This is the projected loss that you have calculated, and the probability of which you are aware. A loss of 1-2% of the deposit is a working moment, without which trading simply does not happen, so you should not be afraid of such losses.
But if you lose more than half of your deposit, it's time to think twice. It's worth reconsidering your money management rules, trading strategy and trading plan.
To overcome the fear of losing money, you should use only those funds for trading, the loss of which will not be critical to you. In addition, adjust the size of the initial lot so that the closing of the trade on the stop-loss was practically imperceptible to you.
Fear of a missed deal
Reading that every deal must be carefully planned, all traders nod their heads in agreement. When it comes to practice, seeing a sharp rise in price, the speculator forgets about everything and tries to jump on the departing train, opening a deal, being afraid to lose profit. In most cases, it ends up in a loss.
Or another case. The trader missed the price rebound from the trend line, but in the expectation that the price movement in the direction of the trend will continue, he buys in the middle of the channel. Accordingly, the take profit will be lower and the stop loss will be higher. Do I have to tell you how most of these trades end up?
There is no need to be afraid of missing out on a profitable deal today. The currency market is huge and there is always an opportunity to make money. It is better to earn nothing today than to lose your money because you do not want to miss an opportunity.
Fear of making a mistake
This fear is generated by insecurity. No, the trader is not afraid to press the Buy or Sell button. He begins to be afraid when a trade is already open. "Is everything done right? Here's a different channel drawn in the analytical article, and the banner with trading signals on the website shows sales, and I bought...". Doesn't that sound familiar?
There's no need to look back at anyone. Everyone trades in their own way, and if your approach brings you profit, then there is no reason for low self-esteem.
Open a trade, place take profit and stop loss orders, and forget about it. There is no need to sit at the monitor 24 hours a day, hypnotizing the trade or begging it to go in your direction. It's a market, and everyone has made losses in trading, even the great George Soros. Don't read a lot of forecasts, you have all the knowledge you need to plan a trade correctly. Believe in yourself, and everything will work out for you.