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Forex Trading Psychology: Levels of FEAR
Jan 21, 2022 at 18:13
Forex trading psychology in my opinion is the most difficult thing actually. We can learn everything we want to learn, but it's almost impossible to set up our conscious correctly, everything because human beings are create to feel emotions. It's impossible to get rid of emotions at all, that's why it's getting harder and harder to handle our emotions. The matter here is to have an ability to distract yourself from bad thoughts and negative emotions. In his case I can advice meditation or some activities which will distract you from forex trading, mainly because you need to supress your emotions whil you're trading.
Member Since Jul 23, 2020
816 posts
Feb 06, 2022 at 01:38
By mastering your emotions, you can get closer to efficiency and maximize profitability.
Feb 17, 2022 at 05:51
It would be wrong to say that you can overcome fear while trading because it’s a natural emotion that will come when you have put your money at risk. But you have to learn to control your emotions so that they don’t become an integral part of your trading decisions.
Apr 07, 2022 at 04:17
The traders are either the most fearful in their first trades or become more fearful with time. The former is too scared to use their real money to trade. On the other hand, the latter are too excited to make money that they take big risks in the beginning and when it goes out of control, they are too scared to use more money.
Apr 12, 2022 at 08:17
I think we should really move over the thought that fear is the wrong thing when it comes to forex trading. But what if a trader is so fearless that he keeps taking unnecessary challenges just to lose money later? Don’t you think that being fearful would keep a trader from taking unnecessary risks and trading safely?
Apr 20, 2022 at 09:13
I would say fear is a tool that our brain uses to protect us from any sort of danger. And nowadays we feel that fear about almost everything we do: going to a new school, starting a new job or business. The fear of getting started with anything is because our brain senses the possibility of failure as a threat. And this fear helps us to stay grounded and make rational choices as and when required. Forex trading is no different. It involves money and speculation which comes with lots of risks and uncertainty. And having this fear of losing money is good whether you are rich or not. This fear will keep us from going overboard and keep us sane.
Member Since Aug 05, 2021
394 posts
May 20, 2022 at 16:04
Great point! I struggled with anxiety when I first started, even though I didn't invest a lot of money initially, it felt like a lot to me at the time because we were living paycheck to paycheck. Losing some of it made me more fearful, but I managed to stick with it and turn things around without reaching the level of hatred or blaming others. Otherwise, I might not have made it.
Member Since Mar 31, 2021
222 posts
Sep 12, 2022 at 09:45
I agree with you. Unfortunately, fear has a very strong effect on our trading. Both in a bad way and in a good way.
Because, because of the fear of losing money, someone begins to be very careful. And the other, on the contrary, because of his fear, he can lose everything.
Therefore, it is important to work through your fears. Understand that this is an experience anyway. The main thing is to learn a lesson from the information received.
Because, because of the fear of losing money, someone begins to be very careful. And the other, on the contrary, because of his fear, he can lose everything.
Therefore, it is important to work through your fears. Understand that this is an experience anyway. The main thing is to learn a lesson from the information received.
Think thrice before opening an order
Member Since Oct 01, 2021
10 posts
Sep 17, 2022 at 12:19
asiaforexmentor1 posted:
Forex Trading Psychology: Levels of FEAR
FOREX TRADING PSYCHOLOGY
People can always relate FEAR to forex trading.
The fear of losing money.
The fear of losing that trade which is too much for you to handle.
However what most people do not realise is that there are different levels of fear.
Eg.
When you can afford to lose that trade, (which you still do feel fear)
you are still able to think rationally and life goes on.
(ALTHOUGH YOU STILL DO NOT WANT TO LOSE THAT TRADE)
In the example above, fear is definitely in our emotions.
But because the level of fear is low, we are able to handle the fear and still think rationally.
HOWEVER,
Eg. your forex trading capital is $10k.
Your current open trade is now losing -$5000.
And that’s half of your capital.
Or worst to say, that’s half of your life asset. (Money you can’t afford to lose)
Forex Trading Psychology – Fear kicks in. (This time in higher dosage)
Then you start seeing your open trade grows to negative -$6000.
Your Fear level increases, you can feel your heart beat racing.
And sure enough, your worst fear arrived,
The trade increases to negative -$7000.
Forex Trading Psychology: Levels of FEAR
Your level of fear had reached its final peak level.
(you know it when you feel):
- Desperation
- Your face turn black
- You isolate yourself
- You start blaming people, things, events
- You pray
When you feel this level of highest fear.
You can’t think rationally any more.
You know that you can’t think rationally any more when:
- You have decided to increase lot size on your next trade
- OR You decided to go ALL IN on the next trade
You want to get revenge on the market.
You now feel HATE and ANGER.
Forex Trading Psychology: Levels of FEAR
And sure enough, when you start to do things irrationally.
That is the downfall of your trading career.
So you see, there are different levels of fear.
And the highest fear can lead to other emotions like ANGER & HATE.
When you start to do all the above.
You know you have reached your highest level of fear.
It is time to stop trading for a while.
Go get a rest, a shower, a walk.
When you feel that you have calm down and begin to accept things.
I want you to think of what went wrong. (not to blame others)
but what mistake did you made in the trade.
Good chance is that you are risking too much.
And i want you to WAIT and NOT trade until your feeling of hatred, anger and revenge is gone.
That is when you are able to think rationally and go back to fix the problem.
Remember, forex is a journey and not a one time success.
Most traders want to make big bucks in a few trade. But eventually lose it all.
Professional full time traders are ones who trade consistently and happy with reasonable profits.
Let me know if you had experience the above before and what you did, or what happen?
Ezekiel Chew
How do you check the performance of one trader?! Checking profile at MYFXBOOK and FOREX FACTORY, or ....?!
Success is not always about greatness, it is about consistency.
Member Since Oct 01, 2021
10 posts
Sep 17, 2022 at 12:19
How do you check the performance of one trader?! Checking profile at MYFXBOOK and FOREX FACTORY, or ....?!
Success is not always about greatness, it is about consistency.
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