Successful traders are not afraid of
Many traders believe that in order to be successful in trading on the foreign exchange market it is enough to have only knowledge which enables them to correctly analyze the market and, as a consequence, to make good profit. I beg to differ: even the best and most accurate analysis may become absolutely useless if Trader psychologically unprepared to manage money.
The fact is that speculators beginners often make the right first steps, but because of their emotional instability they end up losing deposits and acquire disappointment in the market. I think everyone has heard that 100% traders "lose" their first deposit. I don't know who summed up such statistics, but there is definitely some truth in it. And it's not even the lack of experience. Gambling, greed, fear - all these emotions are destructive for a trader. Today we will talk about fear.
Fear of mistakenly entering the market
Even Mark Douglas, in his book called "Trading in the Zone," divided fear into several types. The first: "fear of making a mistake.". I think every trader has faced it at the beginning of his career, when he seems to have conducted a good analysis, found solid arguments to enter the market, but just before opening an order, doubts suddenly appear: "what if I did something wrong", "what if I made a mistake somewhere". And what do you get as a result? Either he or she did not enter the market according to his or her forecasts, or entered the market at a wrong time, or changed his or her mind and opened a position in the opposite direction.
Of course, there are times when fear is overcome and the entry is correct. But, nevertheless, the probability of an erroneous entry, thanks to fear, increases considerably. Let yourself be wrong! Only he who does nothing is not wrong. The market cannot always be predicted correctly. And our mistakes are invaluable experience that we will need in the future.
Fear of losing money
So we come to the next fear, "fear of losing money". It would seem logical to be afraid of losing your money, especially since not everyone gets it easily. But here is the axiom: The more we fear losing them, the more likely it is that it will happen.
Under no circumstances should you start trading with money you desperately need. Before you open your trading deposit, imagine that you have already lost the money you invested in it, that it is no longer your money and it is impossible to lose it a second time. If you start to treat depositYou will be pleasantly surprised at how much easier it becomes to make decisions, and how often these decisions will be profitable.
Fear of missing out on a good deal
The next fear is "fear of missing out on a deal". For example, we open a trading platform, and there is an active "news" growth or fall of a currency pair. Immediately there is a desire not to miss this moment and enter the market as soon as possible.
Stop! What makes us think it's not the peak? Or will we buy on the highs and sell on the lows? First analyze the market properly, and then decide whether or not to enter it. I don't remember who said it, but I think the expression "It's better not to dive in once than not to come out once" is very true. I think you will agree that it is better not to make money at some point than to lose it.
Fear of missing out on profits
The next fear is "fear of missing out". I personally experienced this fear most often at the beginning of my trader's career, and I'm sure you have often encountered it, too. It is difficult to keep open profitable positions - what if the price turns around now and knock me out by the stop-loss. These feelings lead to the fact that orders are closed with small profits and new ones are not opened - "Well, what if the price has reached its peak? As a result, after a certain period of time we see that it was not the peak at all. And because we give in to our emotions, the market goes without us and we miss our profits.
Made a forecast, entered the market, set a stop-loss and take-profit on the order - close the terminal at all and do not open in the near future, if you can not quietly observe the presence of the order in the market.
The main thing for successful trading on the foreign exchange market is a "cool" head. Don't treat possible earnings as a necessity. Let it become a pleasant addition to your work. And never start trading in a bad mood, in such a state a person is inclined to make wrong conclusions and hasty conclusions.
Try to remember the point made by the aforementioned Mark Douglas in his book: the main difference between consistent winners and consistent losers in trading is that Successful traders are not afraid of. Frequent profits to all!