asiaforexmentor Posted May 7, 2012 Share Posted May 7, 2012 Forex Trading Psychology: Levels of FEAR FOREX TRADING PSYCHOLOGY People can always relate FEAR to forex trading. The fear of losing money. The fear of losing that trade which is too much for you to handle. However what most people do not realise is that there are different levels of fear. Eg. When you can afford to lose that trade, (which you still do feel fear) you are still able to think rationally and life goes on. (ALTHOUGH YOU STILL DO NOT WANT TO LOSE THAT TRADE) In the example above, fear is definitely in our emotions. But because the level of fear is low, we are able to handle the fear and still think rationally. HOWEVER, Eg. your forex trading capital is $10k. Your current open trade is now losing -$5000. And that’s half of your capital. Or worst to say, that’s half of your life asset. (Money you can’t afford to lose) Forex Trading Psychology – Fear kicks in. (This time in higher dosage) Then you start seeing your open trade grows to negative -$6000. Your Fear level increases, you can feel your heart beat racing. And sure enough, your worst fear arrived, The trade increases to negative -$7000. Forex Trading Psychology: Levels of FEAR Your level of fear had reached its final peak level. (you know it when you feel): - Desperation - Your face turn black - You isolate yourself - You start blaming people, things, events - You pray When you feel this level of highest fear. You can’t think rationally any more. You know that you can’t think rationally any more when: - You have decided to increase lot size on your next trade - OR You decided to go ALL IN on the next trade You want to get revenge on the market. You now feel HATE and ANGER. Forex Trading Psychology: Levels of FEAR And sure enough, when you start to do things irrationally. That is the downfall of your trading career. So you see, there are different levels of fear. And the highest fear can lead to other emotions like ANGER & HATE. When you start to do all the above. You know you have reached your highest level of fear. It is time to stop trading for a while. Go get a rest, a shower, a walk. When you feel that you have calm down and begin to accept things. I want you to think of what went wrong. (not to blame others) but what mistake did you made in the trade. Good chance is that you are risking too much. And i want you to WAIT and NOT trade until your feeling of hatred, anger and revenge is gone. That is when you are able to think rationally and go back to fix the problem. Remember, forex is a journey and not a one time success. Most traders want to make big bucks in a few trade. But eventually lose it all. Professional full time traders are ones who trade consistently and happy with reasonable profits. Let me know if you had experience the above before and what you did, or what happen? Ezekiel Chew Asia #1 Forex Mentor 3 Quote Link to comment Share on other sites More sharing options...
brokenblade Posted May 10, 2012 Share Posted May 10, 2012 That is something that is very common among traders. I try to manage my trading and not let my emotions get the best of me. IT is better if I trade small amounts of money. While I may only earn a little bit of money, I also lose a small amount of money as well when I lose. Occasionally, I will trade large amounts of money. Quote Link to comment Share on other sites More sharing options...
pepy Posted May 11, 2012 Share Posted May 11, 2012 that is nice thread dude , i am sure that is mostly people feel include me, well i am not hating market but hating myself but not for so long lol, but i am sure if we can minimize to use emotion in trading it will be give us better result and also make sure we understand market move well. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted May 16, 2012 Share Posted May 16, 2012 Well, fear and excitement are always in trades. Although, there could the temptation or capability to control not to get involved those emotions. No matter what fear is or how high the levels they have it should be part of challenge in trading to take it or not to have the position we have. Since fear really affect our thinking and decisions. Quote Link to comment Share on other sites More sharing options...
euro Posted October 10, 2013 Share Posted October 10, 2013 When there is money on the line of course we will fear. I think we can control those fear with stop loss and also knowing what to do and how to react to bad trades. I think there is not much fear if you did not invest a lot of money into it. If you did invest a lot of money then you might fear more. So, do not throw all of your money in one basket and you can do better that way. The higher you risk the more you fear. The less you know the more you fear. Once you have gain experiences, there is nothing to fear about. Quote Link to comment Share on other sites More sharing options...
kiranchandra Posted October 17, 2013 Share Posted October 17, 2013 While I may only earn a little bit of money, I also lose a small amount of money as well when I lose. Occasionally, I will trade large amounts of money. When you feel that you have calm down and begin to accept things. Quote Link to comment Share on other sites More sharing options...
standart Posted October 23, 2013 Share Posted October 23, 2013 basically, fear can reduce traders greed in trading. when traders fear to losing money, they won't trade aggressively by use high margin per trade. traders will always use conservative approach which risking small margin only. to prevent them suffering big loss per trade if they are make wrong decision. Quote Link to comment Share on other sites More sharing options...
davils9 Posted November 10, 2013 Share Posted November 10, 2013 Trading is most important for the man and woman so we need to learn more about forex business before start our trading and it will be better for man and woman. So we are lucky we will be success in forex market. So I like it. Quote Link to comment Share on other sites More sharing options...
davils9 Posted December 7, 2013 Share Posted December 7, 2013 Forex market is most important for me and I hope I can be make more and more money from here and it will be good for me and it will be good for my country so I want to be a good trader. Quote Link to comment Share on other sites More sharing options...
euro Posted December 15, 2013 Share Posted December 15, 2013 I think fear is real and its there if you have money on the line. Its easy to lose money in forex so we must always take care so we don't fear too much. Fear can cause us to back out too soon and not trade too well but as you gain more experiences you will not fear as much. I think putting money in forex is a fearful thing since its too hard to trade it. Forex is fear so no way to avoid fear but to control it with money management and risks management. Quote Link to comment Share on other sites More sharing options...
gaban Posted December 20, 2013 Share Posted December 20, 2013 afraid often to attack the newbie. It can not be denied, when first trading we also sometimes feel afraid to make decisions. As a result we missed a very important moment for the conduct OP. Fear should be avoided. Trading with fear will only bring bad impact for our trading. To reduce the fear, try to take advantage of the bonus posts instaforex for trading real account. Quote Link to comment Share on other sites More sharing options...
Decub Posted January 14, 2014 Share Posted January 14, 2014 Fear is one thing that grips a newbie so much. Since he is entirely new in the trading environment, it makes it almost impossible to run away from it. The fear of losing his trading capital and the fear of remaining in the business makes him want to quit trading. This is something he will overcome with experience and learning. Quote Link to comment Share on other sites More sharing options...
standart Posted January 15, 2014 Share Posted January 15, 2014 fear at particular level needed. it help traders to control the greed and lead them to risking the margin which suits with risk tolerance. however, too much fear will make traders to even get worst result. since it make traders to not discipline anymore with trading strategy. traders always worry with their decisions and even change it early without see the market situation. Quote Link to comment Share on other sites More sharing options...
Stekin Posted March 15, 2014 Share Posted March 15, 2014 Fear is not good for the trader because it is going to make him or her not to be able to trade. When the trader is afraid of trading, he or she will not be able to make profit from forex because if a trader does not trade, he or she will not be able to earn. It is good that the traders learn how to trade by practicing very well. Quote Link to comment Share on other sites More sharing options...
TenkoFx Posted March 19, 2014 Share Posted March 19, 2014 I think fear comes with uncertainty. I don't think there is any point in going for the emotions all the time. many times emotional psychology is over rated. you have to conisder how the people are managing the money and doing the trading better. so i guess it all comes down to the managing the situations better instead of working towards or against the fear. Quote Link to comment Share on other sites More sharing options...
kaito kid Posted March 21, 2014 Share Posted March 21, 2014 Fear is something that can really mess up someone's mindset when they trading if the allow it. In fact, it can even stop the trader from reaching their potential earnings because of this but once you can get it under control it would help better your trading and results. Quote Link to comment Share on other sites More sharing options...
tray22 Posted March 24, 2014 Share Posted March 24, 2014 Yes that is very right if you want to earn then dont employ risk to trade with nor fear all this are very risky We dont need to trade with risk no fear as it is very hard and risk to employed such risk in forex it going to wipeout your entire profit Quote Link to comment Share on other sites More sharing options...
standart Posted April 3, 2014 Share Posted April 3, 2014 no one like to lose. all of us want to win. and since we are deal with uncertain nature of market, impossible to expect win all the time. if traders has no understanding regarding with the risk, they won't accept that loss is part of risk. so, those traders too much fear still in trading. however, uncontrollable fear won't help traders to gain good result. even mistakes often occur. Quote Link to comment Share on other sites More sharing options...
rexway Posted April 4, 2014 Share Posted April 4, 2014 Wining can never come all the time you need to know about this because from what I know the whole things started with you and proberly ended with you. That is very good and interested partway to follow Quote Link to comment Share on other sites More sharing options...
tray22 Posted April 4, 2014 Share Posted April 4, 2014 No matter the level of IQ that you have you need to get yourself involve with learning process as well here. And aside from this I think that your physchology need to be improve if you are on the right track of learning as it help bring more succees to the trader Quote Link to comment Share on other sites More sharing options...
Decub Posted April 6, 2014 Share Posted April 6, 2014 @Rexway without mincing words, that is exactly what so many newbies think. Trading in Forex is not something that means automatic money flowing into your account. Forex as a business is something that you wait on and also wait for in other to make profit from it. Removing your mindset entirely that it is a place the trader can make quick profit is a sure way to overcome the ill side of it and remain focused. Quote Link to comment Share on other sites More sharing options...
tray22 Posted April 9, 2014 Share Posted April 9, 2014 @Decub that is excellent as wel all know even the professional traders did not make their succees that fast even when i ask my former mentor about his trading details life the way he naretted it to me I think I was suprise to know about that for sure so there is nothing to worry about go through your hardwork and you will be safe Quote Link to comment Share on other sites More sharing options...
Decub Posted April 12, 2014 Share Posted April 12, 2014 At the same time, the trader should as well see Forex as a place he can achieve what he wants to achieve but only with hard work. The underlying factor there is how hard the trader is ever willing to work in other to make profit from trading. There is never a trader who started warning from day one but they had to pass through a stage of learning. Quote Link to comment Share on other sites More sharing options...
waseemilyas Posted April 19, 2014 Share Posted April 19, 2014 stress can lessen traders greed in investing. when traders difficulty to dropping funds, they will not trade aggressively by use substantial margin For each and each trade. traders will usually use conservative tactic which risking extremely modest margin only. Quote Link to comment Share on other sites More sharing options...
Ajitesh Roy Posted August 26, 2015 Share Posted August 26, 2015 Fear is always there for traders or anyone when it comes to business and I feel it’s next to impossible to be removing that yet we can face it with the right approach, I am able to do that with help of OctaFX broker, it’s a company that’s highly reputed with having small spread of 0.2 pips plus the swap free account as well, so I am not required to lose too much on their charges yet I can get huge benefits from trading. Quote Link to comment Share on other sites More sharing options...
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