abdulla1 Posted June 11, 2011 Share Posted June 11, 2011 Market knowledge and ability to understand analysis will only get you so far in forex trading, but without the nerve to actively compete risking your own money in the process you can never become a successful trader. Wagering huge volumes of money in a market as susceptible to change is liable to cause a whole range of opposing emotions; fear, excitement and anxiety just to name a few. Battling against your emotions in order to complete a successful deal is one of the major hurdles, which must be overcome if you are to become a trader able to close huge deals and earn vast sums of money. If you can overcome or even use these emotions to make trades on the Forex then a successful career may be beckoning, but failure to do so will almost certainly cost you a substantial amount of money and end any lingering desires to progress in the busy world of exchange rate trading. Initiating and closing a trade at the right times are the backbone of becoming a successful Forex trader. If a person cannot execute these deals at the right times, the psychological and financial damage can be crippling. Missing a huge trend or sitting too long on a good price, can be a demoralising experience, but one that many will encounter during a career in Forex trading. Entering at the right time is just one thing that must be done correctly, but if you are unable to leave at the right time or hold your nerve during the course of the trade, the implications are potentially severe. For example accepting a small loss just before the market rises can lead to a horrendous huge profit/loss ratio margin. Similarly sitting on a currency price that is plummeting for too long could be financially crippling. Understanding the Forex market and having faith in your ability to judge a trend will pay dividends if you hold your nerve, backing out at the wrong time can prove to be a catastrophic misnomer. The fear generated by investing your own personal money is the main thing that must be overcome. It is the culprit in so many failure stories, people who just couldn't overcome their anxiety investing unwisely, pulling out at the wrong time, missing a rise completely, all result in failure and are caused by fear. Accepting this fear, and using it to your potential will make you a stronger trader, able to trade freely and enjoy the thrill of the exchange. Fighting it will get you nowhere, understanding and overcoming it are the best remedies to this baseless emotion. Trading strategies will help you ride out the rough times and capitalize on the good ones. Sometimes just taking a step back and accepting a few losses will give you the energy and the knowledge to attack the Forex with renewed vigour, and make some serious profits. Accepting that sometimes you will lose out, you need to be able to take the hits and roll with a punch, there are no guarantees in the trading market, so being able to move on and start again is a skill that is paramount to generating success. Analysis and charts can only get you so far. You must first master these things, and be able to correctly interpret the figures that are represented in order to spot the trends and make your move. But this all means nothing if you don't have the courage of your convictions. If you are too afraid to buy and not sure when to sell then a glittering career in market trading is likely to elude you. 'The trend is your friend' but it means nothing if you firstly can't spot it and secondly don't have the courage to back it. Knowledge, strategies and overcoming fear may well be the 3 best ways to become to unlock the door to becoming a successful trader. Without all 3 you will more often than not become unstuck, so prepare, practice and evaluate everything before taking the plunge in the complicated world of Forex trading. by Michael J Campbell 2 Quote Link to comment Share on other sites More sharing options...
shoaybkhan Posted July 29, 2013 Share Posted July 29, 2013 Entering at the right time is just one thing that must be done correctly, but if you are unable to leave at the right time or hold your nerve during the course of the trade, the implications are potentially severe. For example accepting a small loss just before the market rises can lead to a horrendous huge profit/loss ratio margin. Similarly sitting on a currency price that is plummeting for too long could be financially crippling. Understanding the Forex market and having faith in your ability to judge a trend will pay dividends if you hold your nerve, backing out at the wrong time can prove to be a catastrophic misnomer. Quote Link to comment Share on other sites More sharing options...
euro Posted October 4, 2013 Share Posted October 4, 2013 These are all good explanation of the trader's fear. We get really fearful in these circumstances like losing out on trades or our trades plummeting so low that there is no way to change it but exit and take losses but if you're experienced, you will not let it ride that low and you should have exited soon enough unless you were not there like on a vacation. That is why you use stop loss to prevent total wipe out of your account. Its possible to use stop loss to prevent total loss of your account. Quote Link to comment Share on other sites More sharing options...
Bagus Posted October 26, 2013 Share Posted October 26, 2013 all traders will feel the fear in their trade and it could not to deny but I think to avoid this fear in the most important trade in doing is using a low risk that management will feel safe in trade These are all good explanation of the trader's fear. We get really fearful in these circumstances like losing out on trades or our trades plummeting so low that there is no way to change it but exit and take losses but if you're experienced, you will not let it ride that low and you should have exited soon enough unless you were not there like on a vacation. That is why you use stop loss to prevent total wipe out of your account. Its possible to use stop loss to prevent total loss of your account. Quote Link to comment Share on other sites More sharing options...
surya77 Posted February 8, 2014 Share Posted February 8, 2014 a fear of forex trader first is loss and dont know how to trade with right way! so for newbies may you can find the mentor or teacher can give you course abaout forex trading with right and discipline. Quote Link to comment Share on other sites More sharing options...
myregister Posted November 18, 2014 Share Posted November 18, 2014 a fear of forex trader first is loss and dont know how to trade with right way! so for newbies may you can find the mentor or teacher can give you course abaout forex trading with right and discipline. But this is about emotion and it is about the fear, it is not easy to conquer our fear, we need practice and practice mentor can teach you how to make profit with some strategy or something like that but for this kind of thing it is your own duty to learn how to control your own fear. Quote Link to comment Share on other sites More sharing options...
mcliffi Posted January 7, 2015 Share Posted January 7, 2015 Fear is inevitable in any business.All of us have the fear factor in us whenever we make any deal.It is just normal for forex trader to have fear.Without fear,we cannot succeed in any business.Fear is the one that will make us formulate good strategies and tips that will enable take the market with a big bang.Fear is the one which will make us stick to the plan. Quote Link to comment Share on other sites More sharing options...
myregister Posted January 9, 2015 Share Posted January 9, 2015 This is representation of human, as someone who struggling trying to protect something. I think this is normal and already become our nature. Fear factor like losing small or bigger money become a common sight in the business with high risk such as forex. Quote Link to comment Share on other sites More sharing options...
pepy Posted December 20, 2015 Share Posted December 20, 2015 Sometimes fear could be justified but it musn't. I know at the right time fear could help us to avoid more risk, but a trader who already know the risk of forex shouldn't be afraid so much and it would be fool to against the market thinking that we aren't fear about what happen later. It is a foolishness to me not brave or want to proof that you don't fear anything in forex. Quote Link to comment Share on other sites More sharing options...
myregister Posted January 12, 2016 Share Posted January 12, 2016 @sidejob: Must and sometimes that is contradictive buddy. You can tolerate to fear sometimes but it is not something you musn't. According to me a people who know their fear able to reap more profit, for example not in forex but stock is warren buffet. He know how to fear or greed that lead him to better life and profit. That could be applied to forex also. Quote Link to comment Share on other sites More sharing options...
pepy Posted January 15, 2016 Share Posted January 15, 2016 @sidejob: Must and sometimes that is contradictive buddy. You can tolerate to fear sometimes but it is not something you musn't. According to me a people who know their fear able to reap more profit, for example not in forex but stock is warren buffet. He know how to fear or greed that lead him to better life and profit. That could be applied to forex also. My bad then buddy, but to be honest fear is really bad if you consume by it. I 've felt it many times and no just for few times, many times i must lose the chance to make a turnback or making profit because of that. But as you said the fear might be a good thing for trader to reduce more risk. Quote Link to comment Share on other sites More sharing options...
myregister Posted February 2, 2016 Share Posted February 2, 2016 Fear will hinder us to get profit, or when we already lose our money i mean is floating negative position you will erase the chance to make a turn. Well, fear if happening in the right time will let us to lose less, means that we know the right time to enter the market, don't have fear means that trader is blind about the market situation. Quote Link to comment Share on other sites More sharing options...
pepy Posted March 14, 2016 Share Posted March 14, 2016 Fear is psychological trait for human and that is inherent. The problem is that many trader actually realized that fear could drive them to the good thing or bad thing. They may cannot reach their potential position because of fear, while some cut their position right before losing more, in the end this is complex thing , our source of fear as trader is the fear of losing more than we can afford, even just lose is a hateful thing. Quote Link to comment Share on other sites More sharing options...
myregister Posted May 19, 2016 Share Posted May 19, 2016 This is a bit complicated because fear is actually a human nature, and not to mention it exist in our life we fear because of fx uncertainity, and this is pretty normal as long as you can drive this fear into something good. Fear for example will allow you escape loss, by not doing trading or by closing a position. Quote Link to comment Share on other sites More sharing options...
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