In my decades of experience as a trader, I figured out Fear is the most common cause of poor performance. I’ve witnessed this over my countless years of trading. There’s no doubt in my opinion that you’re acquainted with the issue I’m discussing. Being scared of losing your gains after a good couple of weeks may make you reluctant to trade again. Right?
I’ve been in your shoes and taking another trade may necessitate a greater effort to adhere to your approach. A trader who has had a series of heartbreaking losses may become frozen, unwilling to join the market or take on any other move due to their Fear. Admittedly, traders are just sentient, and humans have a natural aversion to anything that threatens them with discomfort.
Despite a strong desire to invest in financial markets, the mind’s initial reaction to fear is often greater than desire.
You may very well refrain from adding further funds into your account, although having the expertise to be constantly lucrative! Don’t be concerned; a significant number of traders have had experiences comparable to yours. What you’re really afraid of is not being able to get out of the rut you’ve been in for so long.
By holding off pressing the trigger, one might avoid the suffering you anticipated. This does not imply a lack of strength on my part in the least bit. Even though it results in a great deal of irritation and pain, it is only the mind’s way of attempting to safeguard itself, even though this goes against our best interests as traders.
You could experience certain things while you are frightened. Not letting victories go long for Fear of having to return profits, putting off taking action because you’re terrified of faltering, due to your unwillingness to admit defeat, you continue to cling onto trades that are going aainst you, or you engage in impulsive trading out of concern that you’ll make a loss.
The difficulty of trading, even if you have exceptional analytical expertise, has left many baffled. Although we have made big strides in our trend trading edge, our trading performance may deteriorate due to our gambling mentality if we have mourned substantial losses. Some of you may already be acquainted with this phenomenon. A tremendous proportion of traders abandon their business and never go back.
Only a few of the thousands of people who devote themselves to improving their analytical expertise realize that none of the tactics they’ve acquired can help them conquer their anxiety. One must address the psychological and intellectual aspects of trading in order to prosper. Within a week of putting in the effort to pull yourself out of your anxious state, you will notice a transition in your attitude.
You’ll adopt a low level of anxiety and a detached mindset. You’ll wonder how it occurred, but you’ll be pleased with the outcome.” By understanding the intricacies of emotions that drive your market behaviours, you can put things in perspective.
Regardless of how well-versed you are with technical indicators, you will not be fruitful if you do not have an emotional awareness of how they influence your behaviour.
Earning Financial Freedom Doesn’t Come Easy but Here Are 3 Tips to Ease your Fears
First, acknowledge your anxieties and confront them head-on
When confronted with any dilemma, the first phase is to acknowledge and accept the presence of fear. You are just going to make the situation worse for yourself if you take a defensive stance or engage in denial about the issue.
Everything happens for a reason in your life and there is no reason to squander time on it unnecessarily. Just take it as an opportunity to improve. Never feel guilty about feeling skittish. It’s perfectly normal. Fear is yet another obstacle you must conquer, similar to most trading psychological concerns.
Don’t forget that Trading has ups & downs
You may experience certain months in which you will be building momentum and the money will continue to come in consistently despite your success. Losses are a part of trading, and you’ll have some, too. Individuals who haven’t learned to regulate their anxiety are likely to see setbacks as evidence that it was the correct decision to remain inside their realm of experience.
If, on the other hand, you approach trading as a business, you will be able to accept financial setbacks as an inevitable part of operating a business and instead focus on ways that you can make your operations more efficient.
Avoid straying beyond your comfort zone as much as possible.
When you’ve gotten yourself into the right frame of mind for running a company, it’s time to start capitalizing on the things that have made you fruitful in the past. Bring all you’ve learned back to its fundamental principles. Examine past trades in your forex trading diary to determine the strategies that were successful for you and those that were failures.
Whatever is working, keep it up; whatever is not, modify it. You will inevitably make some errors in judgment but if you can keep them to a minimum and focus on the strategies that got you here in the first place, it will be much easier to overcome your fears.
Those are the ways you may use to deal with and conquer fear, as well as how to deal with tragic circumstances in which fear is most likely to dominate you.