Fear and forex have one thing in common - they both start with the alphabet F, and there’s no doubt that Forex is so fearful. Thank you for sharing this post!
It’s okay to be afraid and cautious about risking your money in a market that can take a turn at any time. Just learn how to handle the opposite of what you anticipate and it will all get sorted.
Sublimes posted:
Fear and forex have one thing in common - they both start with the alphabet F, and there’s no doubt that Forex is so fearful. Thank you for sharing this post!
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
asiaforexmentor1 posted:How do you check the performance of one trader?! Checking profile at MYFXBOOK and FOREX FACTORY, or ....?!
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
Success is not always about greatness, it is about consistency.
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.
Sep 20 2022 at 09:19
The fear can only be controlled when we start feeling confident about our trading skills and knowledge. This is something that comes with experience and practice. So, we must continue to learn and gain more knowledge until we reach a level where the fear no longer affects us that much.
Sep 27 2022 at 09:42
Fear is not something to be worried about as long as it is rational. The fear of losing can keep us away from overtrading and impulsive trading which is a good thing in my opinion. But when the fear becomes irrational then that will hinder your progress as a trader. So we must try to develop our skills and become confident enough to deal with such fear.
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