The causes of fear in Forex trading
It is logical that every trader who trades in the forex market is just an ordinary person whose emotional and psychological state is constantly changing. Therefore, it is natural to be afraid of something, especially when it comes to money and the forex market. Fear can come from anywhere, especially for beginners with little experience and knowledge of the Forex market. Therefore, it is highly recommended that every trader learn this business from the ground up before entering the market directly with their own money.
Here are some reasons why traders face fear when trading the Forex market:
1. You don't want to miss an opportunity to trade.
Doubts and dissatisfaction with the analysis.
2. Follow trading signals hastily without first analyzing the market.
3. You don't want to lose out to other marketers.
4. Follow the wrong thinking and always expect the market to follow our analysis.
5. You want to make more profit than other experienced traders, but you are still a beginner.
The Effect of Fear in Forex Trading
Once you fear before and after a forex trader, his performance will be severely affected and certainly worse than usual. This is because fear can change circumstances from right to wrong, from profit to loss, simply by harnessing the negative emotions in the trader's mind. For a trader participating in the Forex market, fear can turn focus and confidence into doubt when the analysis doesn't work and doesn't live up to the trader's expectations leaving everyone confused.
Here are some of the consequences that traders will face for being afraid to trade in the forex market:
1. Profit margins will drop drastically.
2. Traders become too cautious without making commercial decisions.
3. Losses will increase and eat up the bill for less credit.
4. Trader's confidence will decrease so that they cannot make the right decisions in a short time.
5. It misses a very good opportunity to open and close trades even after the market shows a clear and accurate model in a major trend.
How to Get Rid of Fear in Forex Trading?
Fear must be controlled by calming the psychological state of the trader before and after trading in order to stay positive and act according to the knowledge and experience he has. Never accept that your past wins were just luck and don't think that your past losses were the biggest mistakes you have ever made. Let go of everything that has happened in the past and learn valuable lessons, even if these mistakes are very costly. Yes, the experience is expensive and beyond repair. Therefore, it is not uncommon for successful people to keep their success a secret because they have experienced various failures and sufferings.
Here are some ways you can combat the fear of trading in the forex market:
1. Make sure that the forex market always requires risk for every part of the profit you want to make.
2. Spend enough time to analyze the market movements relying on your own knowledge and experience without following what other traders say.
3. If you want to imitate or track trading signals from other traders, you need to understand how they generate those signals. Do not blindly follow these signals.
4. Evaluate each performance resulting from a loss or gain to identify various important points that can guide you in making good decisions later.
5. Use proper risk management and adjust targets based on market volatility. When the market presents a good opportunity with an accurate model, trade with confidence and place a stop loss.