Often, fear and greed are identified as the main drivers of the financial markets. It is clear that this is an oversimplification, but fear and greed play important roles in the psychology of trading. A successful trade depends on understanding when to embrace these emotions and when to tame them.
Fear is the main enemy of traders I guess. There is nothing worse than have a fear to open a position. You always hesitate and it makes you feel worse and wrose, as emotionally, as physically. I agree with your words on hundred percent. Fear bores lots of issues in traders. Moreover, it's very difficult to get rid of sense of fear. Of course, you can open positions as you want and gradually you get rid of this sense, nevertheless it doesn't guarantee that you won't get that feeling again in future. The more you win, the more you are confident. Every loss bores more fears in you, especially when you trade on your last funds. Don't trade on last funds, postpone this idea until the better times.
When anyone starts out on a forex venture, he must know that forex trading is a risky affair. If you are fearful of taking any risk, you shouldn’t start at the first place and now if you’ve started, keep yourself open to the risk. Fear can make you lose countless opportunities and you’ll overthink even a clear opportunity. It’s not possible to avoid risk but you can control it to some extent by:
1. Not risking more than your tolerance. 2. Not opening too many positions at once. 3. Using stop loss. 4. Keeping the account size smaller. 5. Building a trading plan and maintaining a trading journal.
There are two aspects to 'fear'. One is when fear hits your anxiety level and you make wrong decisions in trading, whereas the other is when fear of loss can boost you to learn, expand your knowledge, avoid greed, and gain profits. It’s all about how you handle your fear and turn it into profit.
davemack posted: There are two aspects to 'fear'. One is when fear hits your anxiety level and you make wrong decisions in trading, whereas the other is when fear of loss can boost you to learn, expand your knowledge, avoid greed, and gain profits. It’s all about how you handle your fear and turn it into profit.
Very true, i think there is a healthy level of 'fear' as you can it to help you stay on your toes and alert. Getting too comfortable or lax is very dangerous in trading
That's right. Fear is the worst enemy of traders because they often can't reveal their potential because of a strong fear, especially when they had unpleasant xperience in the past, for example, if they twice lost their deposits, then there is a very little amount of chances that they would enter trading again. However, the market loves those traders who don't give up. Of course, sometimes it's really difficult to change your worldview and opinion concerning trading, nevertheless all those traders who are successful, they came to this success due to such situations.
Fear indeed become the most enemy from own selves, besides fear also greedy, sometimes trader they still want more although on the day target already achieved, or they become overconfidence when taking a look the market seems will giving accurate trading analysis and then increasing volume trading, but usually when trader face with the big loss they just been realized if already make a mistake.,
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