Top 4 Trading Fears and how to overcome them
Facing Your Fears - Top 4 Trading Fears & How to Overcome Them ✊
Let’s face it, trading can be scary! After all, it’s your capital at risk, and concern is only natural. 😱😱
But when you are a prisoner of your fear and it leads to losses, it’s time to call in the big guns! 🔫🔫
Let’s take a look at some of the most common trading fears & learn to deal with them together.
1. Fear of Loss
Sometimes market tend to act in a way we don’t expect them to, and this element of uncertainty touches both - beginners and professionals, regardless of expertise. Bad news is - being patronized by the fear of loss impacts your objectivity and prevents you from acting in a timely manner. As you dwell on whether to take a risk and go against your rationality - opportunities pass you by, and losses add up.
2. Fear of Being Wrong
No one likes being wrong. Especially when there’s money at stake. There’s no guarantee you are 100% right when it comes to trading, but the paralysis of not being able to pull the trigger despite what your analysis points at, locks you in the circle of loss. Accept the phenomena and trust your technical and fundamental analyses.
3. Fear of Missing Out
So a friend told you about a great money-making opportunity. He invested in an asset and got a high return two days ago. Your analysis, however, shows that the option is extremely high risk. But yes, you don’t want to miss out on a potentially golden opportunity! If you need expert advice - best refer to educational materials and analyst reviews, rather than follow the crowd.
4. Fear of Giving Back Profits
If you’ve traded for a while, it’s likely you’ve already faced some losses. Or perhaps been a situation where you let your profits run and came to losses in the end. Now whenever a position becomes profitable, no matter how much of a small amount you’ve gained, you do your best to protect it, because you are afraid it will turn into a loss if you don’t. This is pure emotion, and the extent is proportional to how much you’ve lost in the past. Trust your analytics and follow your trading plan on entries and exits.
Let’s accept our fears and be above our emotions.
Markets like precision.🎯🎯
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