How to overcome fear in Forex trading
Hello subscribers and readers. Today I want to talk about fear and how it can affect your outcome in your Forex trading. There are different types of fear that one can experience in Forex trading. But before we get into that, let’s have a look at what exactly is fear.
What is Fear?
Fear is an unpleasant feeling triggered by the perception of possible danger. It could be real or imaginary. We are likely to feel our hearts beating faster, shaking or even sweating when we experience fear. It’s not a great feeling at all. Imagine having all those feelings where money is involved, real bad right?.
There are different types of fear, but in this post I will only focus on 3 types that are the most common when it comes to Forex trading.
1.Fear of failure/ loosing money
This is the most common fear that Forex traders experience. It could be because most traders go through a lot of losses due to jumping into investing in the markets without proper education and being misinformed. And because of that, by the time they acquire knowledge, they are already numb and carrying the memories of their past losses and it’s hard to let go of the past. Let go of the past and focus on the current and the future.
When you approach the Forex markets with these kinds of emotions and thoughts, you are setting yourself up for failure. It is hard to believe in your Forex trading strategy or plan if you are a scared being.
There is no formula that I can give anyone who is feeling scared every time that they enter the markets besides telling them that they must face their fears (of course it is a different story if I am coaching you because we do coaching sessions until you manage to overcome the fear) . Fear is normal and it does subside with time. The more you are active in the markets, the more you get comfortable. You just have to do it consistently.
It is also difficult to face the unknown. The best way is to start by identifying what really scares you. If it is the past losses that are scaring you, start by finding out what caused the past losses and fix that. Once that is done, you can then work on avoiding those mistakes by doing things differently this time around. If you still find it difficult to identify the issue , you definitely need a mentor to help you clear your path and identify that. You can check out my mentorship program HERE.
2. Fear of missing out
This type of fear happens when you do not have a clear understanding of how do you trade and why do you even trade. Most people who are Forex traders are still finding it so hard to plan for their Forex trading sessions. Some people are even unaware that it can be done. Most people still need to unlearn that as a Forex trader,you are supposed to be glued to your screen and stay up all night babysitting trades and have zero life outside of the markets.
Then there are those Forex traders who understand that they can actually draft a Forex trading plan and follow it (which is great, I do that as well and that’s what I teach my mentees to do).
The challenge though is learning to be content. If you find yourself being too busy at work or in your business to sit down and trade according to your plan, you are likely to feel like you are missing out on some great trading opportunities and that could be very frustrating. When you feel frustrated, chances are, you’ll enter the markets too late and loose. Again, there is nothing that I can say besides that one needs to understand that a missed trade is never a loss. There is so much power in understanding that.
If for some reason you could not sit and trade during your planned session, there’s always going to be other opportunities. Also understanding that when you don’t do any activity in your Forex trading account, you will never come back and your money has disappeared. That can happen though if you are trading with unregulated brokers. It is so important to trade with regulated Forex brokers. It is for the safety of your funds.
3. Fear of success
This is the most confusing type of fear for most people and it took me so long to understand it as well. It is confusing because no one in their right mind would intentionally feel scared to be successful. We all want to be successful. The reason why you are even trading and reading on this blog is because you are looking for ways and tips to be successful in Forex trading. So,there’s definitely no way that you can trade and be fearful of success but it happens, and it happens a lot.
With my mentees or the traders that I coach, I have realized that most of them are sabotaging themselves by “running” away from excellent trading opportunities and they’ll make all kinds of excuses why they are always identifying great trading opportunities but they never act on them or they take on demo. As a result, they are mostly making money on demo and when they eventually do take the same trades on live account, they always take the wrong ones.
The fear of success is very difficult to identify because it does not happen consciously but it happens in our subconscious minds. I believe that Forex trading is more of a “work on me first before focusing more on strategies” kind of business.
On a day to day basis, I speak to different individuals who are struggling with Forex trading. I can tell you now that most of the failures are not about trading strategies but are about how the person thinks and how they handle their emotions and self control being the number one cause of failure. With some Forex traders, it is just a feeling of not being enough or thinking that making money is for certain people (more of these lessons on my mentorship program)
I hope you found this post valuable, please kindly share so it can reach more Forex traders. Please leave a comment and share if you can identify with any of the fears mentioned above. If you wish to receive my next publication direct to your email, you can subscribe and your confirmation email could be on spam if not on inbox. Thank you for stopping by.