Fear and anxiety are two main features which the majority of the traders possess and, therefore, fail in trading within a limited amount of time.
Can traders ”fight” their fear, and overcome such barrier that can negatively affect one’s trading activity and ”survival in the forex market.
Fear brings negative results
The traders should be able to interpret the negative consequences of fear and anxiety beforehand.
Every trader should, therefore, ”create” their unique formula for managing psychology the right way.
The parameters or ideas one should adapt to his or her trading strategy for minimizing fear are:
- Decide on a strategy before placing trades on the platform
- Repeat the same strategy at all times
- Foresee profit from a long-term perspective
- Never doubt a strategy and keep on
- Isolate the negative people who are de-motivators
- Let the doubters laugh, keep concentration
- Believe and never give up, the path to success is a long way
The three features one should have are discipline, perseverance, and professionalism.
Ingredient 1: Discipline
If you are not a disciplined trader, you should not trade in the first place.
You must test your strategy on a demo account first, and then on a live account. Discipline mirrors whether or not you are able and capable of following your strategy right.
Ingredient 2: Perseverance
Failure is just the beginning in trading. If a trader never failed it means that he or she has never tried learning something new.
Ingredient 3: Professionalism
Possessing a professional’s mindset is a must as many traders perceive trading as a hobby and do not take it seriously. The outcome, in this case, couldn’t be something different but failure.
Moreover, fear has two distinctive characteristics, the quantitative and the qualitative. When it comes to the first set of characteristics, it is very easy for a trader to ”understand” price action, indicators, risk management, and fundamentals. When it comes, though, to the qualitative features, one should be able to minimize within, his or her greed, fear, and anxiety.