The fear in forex trading is real if you do have fear while trading forex, I want you to know that it is normal. In this post, you are going to learn about what this fear in forex trading is, what it is caused by and how to overcome the fear in forex trading.
So what is this fear, forex traders do have while trading?
Well, the main reason why forex traders or newbies get to have fear in trading forex is that they are scared of losing or making losses. The goal of forex trading is to make more profits than losses so whenever you make a profit you become happy and whenever you make a loss, you become depressed or sad. Well, this is normal, but I am going to show you how to overcome this fear.
What causes one to have fear in Forex trading?
To understand this fear in an easy way, we first need to understand what causes it and that is when we will be able to understand and know how to overcome it.
- small trading capital – Having an account with small amounts like $10 can cause you to have fear of losing. For example, if you are to trade V75 or boom/crash 100 or nas100, it is possible to lose this $10 in a second because of wrong lot size, slow internet or wrong prediction.
- not trusting yourself – if you are a beginner in forex trading, you might not be trusting yourself because you might be thinking like you lack experience, more skils etc. Not trusting yourself can lead to you having fear thereby failing to place trades.
- not trusting the indicators – all forex indicators work and they were not all created by a single person, therefore you do not need to expect all indicators to work for you. Some indicators can work for me but they can never work for you. So depending on indicators can also lead you to have fear in forex trading.
- Stressing – Everyone has their own personal problems and most people who trade forex are either students or non-working people, and therefore, your personal issues can really affect your trading. For example, if you only had $100 as your last money when you do not work and what could happen if you were to lose it all?.
There are so many reasons that can cause one to have fear while trading forex, according to my experience, I came up with those 4 above. Let me know yours in the comments to help someone.
How to overcome fear in forex trading
Now that we know what this fear is and what it is caused by, let us now overcome it. How do we?
- Small trading capital – Most forex beginners start trading forex with small amounts and some who do not have any other source of income also do trade with small accounts. It is easy to overcome this. To overcome this, you need to start depositing large amounts of money, haven’t you noticed how you are able to make more profits in demo account than in real account? the answer is simple, it is because it is easier to make profits in a big account than in a small account. If you are not able to deposit a large amount, you have two options. 1, to stop forex trading and 2, you need to change your mindset, start seeing the amount as if it is demo money and don’t focus on losing, make up your mind like even if you lost, you wouldn’t be hurt.
- not trusting yourself – you need to trust yourself, if you feel like you lack knowledge or skills, continue learning more and practising. Believe that you can really make profits and learn from losses.
- not trusting the indicators – Why would you buy an indicator and not use it? when people buy indicators, they depend on them. Indicators as what they mean, they are there to indicate or help us predict not to be our gods. This is the reason I don’t encourage people buying indicators when they do not know how to use them. To overcome this, you need to stop depending on them and control them by using reason and logic. Don’t let them control your mind like you know nothing.
- Stressing – outside problems and stress can cause fear as I mentioned above. If you are passing through hard difficulties and you are really stressing, it is better you do not trade at all. To overcome this, you don’t need to trade, heal up first unless you can control your stress and your mind
I hope you learnt something out of this. If you do not agree with some of the things I have mentioned above, feel free to share your opinion in the comments. If you would like to add your experiences like causes and how to overcome, feel free to comment too. If you liked the content, help out your friends by sharing this article to them by sharing.