How to fight fear of losing?
Lower your $ per pip. Stop loss is around 50-100pips.
Yeah, candlestick is important, take a look at GBP/USD M30, 14Jan2010 and 02Feb2010. Looks similar?
Most people will stuck here, because it is the swing that scare people.
First of all, List out all the problem while you are trading beside fear.
The important skill is how to be patient
a) for the loss to come back.
b) for the profit to grow.
Even with all the available strategy outthere.
Lower your $ per pip. Stop loss is around 50-100pips. Yeah, candlestick is important, take a look at GBP/USD M30, 14Jan2010 and 02Feb2010. Looks similar?Most people will stuck here, because it is the swing that scare people.First of all, List out all the problem while you are trading beside fear.The important skill is how to be patienta) for the loss to come back.b) for the profit to grow.Even with all the available strategy outthere.
Dear Steven,
Your last two lines on patience is very important part of trading. How let your trade develop.
I went thru the two days you mentioned. 2nd feb was a very choppy day. I did not even think of trading on 2nd feb coz the price bars were very close to daily pivot and also were in between mm3 and wm3 (of monthly and weekly pivots). These are the places were we want to see a decisive price action. But there were none available. For a good part of London session was between 71 points.
Even in Jan we had couple of days which had very small intraday range.
I'll surely try to develop my patience for trade to develop, just as I've developed my analysis. Thanks.
I thought is would be interesting to sit down and write about people’s fear of money. Many investors fail in our world due to their fear of losing money. I don’t want to confuse the concept of protecting one’s money through proper money management and the “actual” fear of going broke. These fearful investors base their entire system and style of investing on a negative thought process. Successful investors, whether it be in stocks, real estate, businesses, etc. always think about strategies to protect from the down-side but they focus on the reward versus the original risk. Unsuccessful investors think about losing the initial investment and more often than not, pass up on a potential golden opportu
I thought is would be interesting to sit down and write about people’s fear of money. Many investors fail in our world due to their fear of losing money. I don’t want to confuse the concept of protecting one’s money through proper money management and the “actual” fear of going broke. These fearful investors base their entire system and style of investing on a negative thought process. Successful investors, whether it be in stocks, real estate, businesses, etc. always think about strategies to protect from the down-side but they focus on the reward versus the original risk. Unsuccessful investors think about losing the initial investment and more often than not, pass up on a potential golden opportu
Everyone has fear, and everyone does have greed.
Fear can be overcome with experience, homework, and research. Of course, it is good to build up the confident stage by stage. Even in business, some may be bankrupt, but this fear is a bit late to know. In forex, it's a matter of weeks and days, because everything is our own money. But in business, most of the time, is being financed by the bank.
Mainly their fear of losing money because they could not afford the lose, and haven't done any preparation of the loss. Everyone believes everything is 100% profit.
Successful trader they know how hard work pays off, there is no easy money out there and they know what they are doing. In order to have greed, they have to overcome with fear. The larger the greed, the greater the fear. The first homework to do, is how to handle our fear.
"Success comes from failure", deal with the failure or lose, and try our best to make it work.
Hi
This topic is very important ( along with Greed).
The way I handle fear is by antipicating the worst possible scenario and even in those scenario I have planned action to carry out.
Also the bible tells us 365 times " do not fear" , so I always calm myself down this way.
Further, I use very little leverage max 2. So , unless , FX dropped by 1/2 in one single action, all my position will be ok and I can sleep better at night.
Hope you enjoy my sharing
Owen
position size is key ..... calculating your acceptable risk and calculating your position based on a 20 pip stop loss etc is just silly.
2-3% risk is completely acceptable, but it depends on how you manage it .... personally, I try and have my position size as such that I can tolerate 200 pip drawdown or more.
The killer for new accounts is trading a position size that is way too large for the account in anticipation of getting rich quick.
HII started trading in Jun 09. Did blow up 4/5th of my account. Did some networking thru forums. then I was suggested to understand price action/candlestick patterns.During this time I read alot on fibonnacci too and Pivot points.Now, I'm able to understand market movements lil by lil thru candlestick patterns. Thru fib and pivot points (daily, weekly, monthly) I'm able to get findout some good entry points. and also slowly been able to inch towards marking out take profit levels. I plot fib extension or retracement for take profit.But the trader in me is still scared. I often dont enter due to fear or exit too early. I'm not able to fight myself and not able to overcome the fear that has got into me due to the initial loosing streak.I'm sure few more traders must have gone thru this. Can you guys please suggest me how do i overcome this fear?Buccas13
Truth is bitter
You must have a trading plan.
A trading plan based on God's plan,
You may want to find out how from this site
You can cast out fear if have a trading plan.
I am new to trading myself and found that fear caries a lot of baggage with it also.
1) Taking bad trades to try and make back what you lost in fear of losing it all.
2) Being impatient and not waiting till you see the right moment to take a trade.
3) Being fearful of getting stopped out and moving your stop.
And the list goes on.
But I have also discovered by taking a break and walking away for a few hours or even a day will help in calming your fears. Just remember that there will always be loses. Walk away from it and read your notes. Find something to do that take your mind off it.
I was able to attend an online webinar and they talked about handling fear. They pointed out that if you feel uncomfortable about what you are doing, don't do it on a live account or else you will definitely end up losing the account. Try practicing on a demo account first until you are absolutely confident with your trading skills. In time, you may suffer a few losses but that money should be considered as "tuition money" because you will learn a lot from those losses.
"If anything can go wrong, it will" /Murphy's laws/
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HI
I started trading in Jun 09. Did blow up 4/5th of my account. Did some networking thru forums. then I was suggested to understand price action/candlestick patterns.
During this time I read alot on fibonnacci too and Pivot points.
Now, I'm able to understand market movements lil by lil thru candlestick patterns. Thru fib and pivot points (daily, weekly, monthly) I'm able to get findout some good entry points. and also slowly been able to inch towards marking out take profit levels. I plot fib extension or retracement for take profit.
But the trader in me is still scared. I often dont enter due to fear or exit too early. I'm not able to fight myself and not able to overcome the fear that has got into me due to the initial loosing streak.
I'm sure few more traders must have gone thru this. Can you guys please suggest me how do i overcome this fear?
Buccas13