Yes, because the market can be volatile, there is always the risk of losing money when trading a currency pair. In addition to the inherent risk linked to trading, with Forex trading you need to add margin trading and leverage, which means that you can trade large amounts with little initial capital.
AliForexTalks posted: Yes, because the market can be volatile, there is always the risk of losing money when trading a currency pair. In addition to the inherent risk linked to trading, with Forex trading you need to add margin trading and leverage, which means that you can trade large amounts with little initial capital.
Loss is a common thing in this market. You need to make a good plan to reduce the losses.
Well, there are some traders who always are afraid of losing their money. In my opinion, it's a great mistake, because such fears never let traders to reveal their potential in trading activity. You always restrict yourself in your mind and always try to lose as less money as you can. Don't be afraid of losing money, because it interferes your potential success. Lost all your money? Nothing bad. Just earn money again in other activities and return to trading. You can acquire solid experience only in case of proper trainings and frequient practice. Never leave trading activity until you understand that it's not something that you really want to do.
I personally don't think that traders should be afraid of losing their money. Trading activity alwys implies risks, these risks imply losing money, hence if you once have decided to join trading activity, then you shouldn't be afraid of losing your accumulations, because you came to trading with these thoughts. Of course, it's kinda incorrect to set up your mood like that, however it may help you to avoid serious consequences fro your mental health after losing your money. Nevertheless, traders always should be positive in order to have strengths to open new opportunities for earning funds. it sometimes can be pretty difficult, but anyway it will help you a lot.
Loss is part of trading, usually if afraid with the loss will mess up the trading plan, trading needs to keep in mind if loss is sometimes inevitable, but we need to make risk management using stop loss or another trading strategy, if we afraid, hence will doubt in trading and this not good for the end result
Definitely yes when it’s a high risk and reward trade but most often I keep my risk to reward ratio lower. Initially it was a big deal to me and I used to be so disappointed with my losses but now I’ve made peace with it and am trying to focus on improving my trading skills.
This permanent fear will never lead you to something great. I believe that people shouldn't be afraid of mistakes in their daily life as well as traders shoouldn't be afraid of losing a trade. It's just an experience, of course it'sn an unpleasant experience, however it teaches us a lot. One mistake can prevent thousand of other mistakes, that's why it's very important not to give up after mistakes or losses. It's just the main rule in trading, never give up after couple of losses. If you lose all the money, then you have to earn a bit more and start all over again. This is how our life works actually.
I struggled with this in the beginning, money was tight and I felt that I was wasting it if I lost any. I wanted to be able to tell my husband that I was successful, not that I was losing the investment that we struggled to come up with. Over time, I suppose I got more confident and things started to go well for me. I think that time and success helped me to build confidence, but I still struggle with trading anxiety at times.
davegordon posted: I don’t want to lose my trades and I’m sure no other trader wants that either, but if you ask me, “ Am I afraid to lose?” No. If we are going to fear the most obvious thing in trading, we can never grow. A losing trade should be taken as a lesson but fearing it would be like giving it a lot of importance. It’s not possible to move forward while holding onto the fear.
Agree, we all have a fear of losing the money so it is very wise to make a proper management in risk and money
UweMoench posted: Most people are afraid to lose money. That's why they take impulsive decision out of emotions. If we don't have enough idea why we are opening or closing a trade, this fear will persist.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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