I partly agree with you. It’s okay to start trading on a demo account initially but in order to overcome your emotional fear, you need to trade on a live account. Untill your own funds are not involved, you won’t take it seriosuly or you won’t even understand the fear of losing money. So start with a smaller amount and risk what you can afford to lose.
Keep trading buddy and don’t give up. It’s only practice that is going to instill confidence in you and your knowledge will also grow, which ultimately will again dispel your trading fears.
Always tune yourself on demo trading accounts, back-test your strategies. And keep always a learning attitude. This will help you to gain confidence on your trades and eventually helps in conquering fear.
Exactly, demo trading always helps a person to test the trading conditions prior to making the live trades, also a trader should be determined enough that the fear of losing doesn’t come in his way and if in case any loss occurs then he manages to overcome it instead of giving up.
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With lot of regular practice, you can remove this fear.
Real confidence can be achieved when you learn how to plan your trade. Most traders focus on the trade entries but forget how to plan their exit. A clear exit plan gives you a courage to face each trade with conviction.
If you don’t know how to exit your trade before opening it, that creates confusion and fear.
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As a human being, it is normal to have fears in trading. But if you trade with money you can afford to lose, risk no more than 1% on each trade and develop a trading plan that has clearly defined entries and exits, then your fear of trading will automatically be gone.
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Firstly, I feel that you should try not coming under the pressure. The more stress that you take, there is a high probability that you can take wrong decisions. You should give your all in the demo accounts first and consider the trades the way you would in a live account. Another thing that can really help you is to be well informed about any latest happening in the market, it surely will give you a sense of confidence and make you comfortable with trading. Another thing that you need to know is that there will be days when you will make losses and that is a part of trading.
Fear of losing can push you towards making irrational decisions so that might be the reason why you start losing when you trade in a live account.I will suggest you to trade what you are willing to lose and don’t risk more than 1% of your trade initially. You need to have plan so that you can incorporate it while trading.
I think that’s a great advice. If we know how to manage risk well, things are much better.
You need to maintain consistency in order to remove fear of trading. Consistency will help you earn stable and regular profits.
Even after >15 years on the markets I do have the fear at various levels.
My way to cope with that is focus on automated trading. If I have acceptable strategy (with positive expectation) and I cannot execute it due to my “psychological limits” - I need some cold bastard to execute it for me without hesitation, a robot.
Totally agree, the demo account really helps a lot, it helps to make better trading decisions but at the same time there is no emotion attached with the demo account because real money is not involved.
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Reduce your lot size. Have a trading plan. Accept all possible outcomes before activating a trade. You should accept the fact that the trade you’re about to activate “can” incur $$ in loss with a potential of $$$$$ in reward.
Even I faced it initially when I started trading but gradually you will get used to it. As others mentioned, you should practice on demo account before starting to trade on live account that will help you understand the platform and practice various strategies.
True - in a demo account you do not really feel any pressure as it is not real. But it can help you be more realistic in your trades, and that way of thinking can allow you to be better trained when you trade i real life. You cannot expect to always make a profit. it is normal to end up making a loss. However you should not take things lightly nor get discouraged. Just make sure you are serious about it ex. by taking the time to conduct careful analysis, have a good strategy. Keep a trading journal. All this can help you.
- Take a walk after each trade.
- Find out the least volatile hour of the trading session.
- Stop trading after three consecutive wins or losses.
- Don’t look at your profit and loss while you are trading.
- Ask yourself: “Am I scared?
Avoiding focusing on what will be the outcome of our decisions. After all in life we’ve made some bad decisions and yet get positive consiquences.
Worth reading from old post.
- My advise would be to start with the smallest lot size and only open a few that you can keep up with, having alot of positions will just end up too much to handle and lead to losses.
- As you become adept at trading, you will learn when you enter and exit trade, randomly trade are bad.
- If you start to loose and want to trade more to recover your losses, that probably when you should stop trading cause you are more likely to loose more than you gain.
- You will get used to losses as it common in trading, at the end of the day if you win more times than you loose then that what matters.