The first thing you do, or have to tame when trading Forex; Face Your Fear/. But should we call such Fear An Ally or Hostile for Traders?
What I will write below, might not apply to all traders. But will apply to many others who faced the present situation of fear. And as you know, this emotional aspect provoke an impact to a great extent on the results obtained from our positions traded on the Forex Market. Even when knowing there are thousands of articles about Forex Trading on the internet. Also, too many books written by renowned authors. And despite reading and over reading those articles, and of course, many times using for hours and hours our demo accounts. In the hope of learning 100% a strategy, there still will remain a terrible fear of failure.
It is a barrier so thin, and at the same time so intense that prevents us from enjoying trading.
Although it may seem contradictory, it turns out that when we begin our journey of investing in Forex, the simple fact of getting some positive results creates a bad feeling about everything to us. About what we are doing with specific trades. These wrong expectations hit the strategy. Also giving us false hopes about the market, towards our selves. Even towards the benefits, we believe it will always give good results, yet if we have not enough knowledge.
On the other hand, a trader might have sufficient knowledge on how to manage himself on the market. And the favorable gusts come along. But this also affects if we do not take seriously the results obtained. Many traders feel like they are super traders when things like this happen. The market does not excuse anyone and is when a slap find our face with a white glove when casting us dramatically off from the cloud.
So what is to Fear then?
Fear is an ally, it makes us put the feet back on the ground, it takes away false expectations from our trades, it allows us to evaluate the fear on our behavior, opposite to a trading platform, undoubtedly this self-assessment will transform you into a better trader or finally, teach you to throw the towel. You see, trading Forex is a “surgical” process. Trading Forex will take you to the limit of your most secret feelings, your self-knowledge, to stop you from thinking about money and realizing that every day is necessary to take actions, to win or conquer our wished results. Without fear, precaution does not exist, and it is precaution the one making us think better and trade “things” better.
But what is that affecting your Trading reactions?
The most recurrent things are in this list of activities tied to our everyday life.
- Type of music you are listening
- Economic situation
- Trading hour
Explanation of each
1. – Even if you are in a religious group of any sort, that does not mean that the divine forces were with you through the fear in your daily trading, do not leave that this “clouds of perspective”, this will be pushing back when is only you the responsibility of the decisions made.
2.- Even though this seems ridiculous, it affects a lot and its frame of mind, stop listening sad music, or “happy” music in which lyrics are involved adverse situations, this is not good since you will end up identifying yourself with the “history/lyric” of that song and obviously your feelings will be more sensitives.
3.- Whether you have it or not to have a partner plays an essential role in daily trading, if you have no partner then do not worry(too much), there are thousands of ways to keep you in a good mood, to find the serenity on adverse situations.
The rest is even more important!
4.- For many traders family is the engine that encourages them not to throw in the towel, but don’t get fooled. It is one thing to know the potential of the Forex market and another; you really feel comfortable doing trading, don’t do trading for obligation or by getting desperate, this can lead you to more fear and even get you used to it.
5.- Exercise is essential to keep a right attitude, accept losses in the best possible way and it makes more effective, it is not convenient at all to trading when you are tired, after your daily work, if you are thinking on trading avoid taking alcoholic drinks.
6.- If your bad economic situation brought you to this trading world. Then you must make a pause and recognize, this market is not for desperate people. Forex is not to compete and to quickly make money, avoid using of indispensable money. Trading Forex Market call for the need of making good decisions and for almost absolute control of your fear.
7.- This aspect effects to practically all of us. The best session to operate the Forex market is in Europe. If you are an employee (and you are living in the US), perhaps you will have to make an effort and wake up earlier which is not good since it will affect the previous points. If something goes wrong, you inevitably will end up taking a bad decision. Go slowly adjusting your trading hours do not expose yourself for too long days.
Fear makes us re-think things. It makes us even better traders. Allowing us a self-assessment to recognize if we are ready for this emotional game, which we must avoid when trading. If today is the day that even scares you from entering into the Forex market or your lack of “something.” Perhaps there are details not correct in your daily life. Keep away from Forex a few days, and analyze your situation, it is the best thing to do.