Fear of LossDon't risk what you can't afford, don't open too many orders at once, define the trading plan and follow it. Train yourself to trade with one of the classic Forex indicators, get a trading diary and analyze it, open the cent account, just DO IT. Experiencing fear is normal and, in some cases, even good, because it helps you assess risks and respond appropriately. However, you shouldn't let your fears affect your trading results.
To overcome your fears, you must first determine what you are afraid of. In most cases, people are afraid of losing money because they have very little knowledge of the market or the trading system. Therefore, better understand the market and come up with a trading plan that fits your objectives. Gaining market insights will also help you distinguish between high-risk and low-risk trades, so you'll be in a better position to minimize risk factors.
The best way to overcome fear of the unknown is to understand what trading is all about. You can expand your knowledge by reading good trading books and taking trading courses. The way to deal with this fear is to have a solid exit strategy and maintain it. You should practice and know what you want to get out of the market and not look at what you could or should have done.
In addition to reducing the size of the position, staying on the sidelines is a great way to calm your nerves. By performing just a few quality settings each month, you're much more likely to keep your trust intact, which translates to a greater chance of making a profit. This fear of being confronted by loved ones could lead you to shorten your operation or even not to execute a trade. Designed for new and developing traders, MarketMilkâ ¢ is a visual technical analysis tool that simplifies the process of analyzing market data to help forex and cryptocurrency traders make better trading decisions.
If trades go against you while you are in the grip of this fear, you could end up averaging lower, avenging the trade, moving away from your trading plan, etc. Use fear to make better trading decisions Once you identify the source of your fear, make the necessary changes to your trades. Instantly find out if the forex market is open or what the current trading session is based on your local time zone.