What’s the best way to overcome fear of losing ones money to the market?
2 Likes
I think that’s a tough thing to do but the first step in my opinion is not trading with money that you can’t afford to lose.
2 Likes
Fair enough. Thank you for your response🤗
Everyone who trades loses money - that’s normal. And that is offset by trades that win money. So to be successful, it’s necessary to win more than you lose. The secret is not to lose big, but to stay in the game…
That is not easy, and that’s why money management is critical. Once you have a strategy that gives you an edge, it’s essential not to risk more than 2% of your capital on any one trade - and better still, not more than 1%. Also, no more than two correlated trades on any one trading session, because you’re doubling the risk of losing more.
Ask anyone - we hate losing more than winning - it’s a psychological human trait. What I do, is to accept it’s not my fault if a trade turns against me, and cut my loss quickly, which makes me feel good, because I’ve saved losing more money. That’s history, and there’s always a better trade waiting.
3 Likes
Simple. Practice discipline. Win or lose make sure you’re sticking to your set trading rules.
1 Like
there is no way to avoid losses in spite of having most powerful analyzing trade knowledge , so we the traders first of all have to be prepare mentally.
1 Like
I read an interesting article about FOMO, there are all kinds of examples of our fears in trading and also interesting tips to deal with them
1 Like
Oh thank you so much for sharing this. This is something I’ve been struggling with a looot as beginner because most of my friends are more advanced and experienced traders than I am, so they’ll be posting about their trades and profits and it give me sooo much FOMO and I’ve never known how to deal with it. So hopefully this will help curb that.
2 Likes
Well if fear is what’s not letting you trade well, then lemme tell you, that nothing but practicing will help you get out of this Feeling. The more you trade, the better you’ll get at dealing this.
1 Like
Stick with your strategy and learn to create positive results over time. Do not be fearful and think about the long-term.
2 Likes
Invest only money you can afford to lose and write it off as gone
1 Like
Thank you. I was introduced to Forex by my daughter
1 Like
Learn, demo. Learn, demo. Learn demo. Until you’re consistently profitable. When this point is reached, start trading live.
Remember, if you can’t make a consistent profit using demo trading, using real money won’t change that.
1 Like
I meant to add, imagine trading is like building a boat. Every time you build your boat and put it in the water, it sinks. You pull it out and improve it and put it in the water again: but it sinks again. So you pull it out and try again.
The boat is your demo account. You have to try things and fail so that you can learn how to improve your boat. Same with trading - a demo account allows you to try things and fail so that you can learn and trade better.
Remember, you won’t stop a boat sinking by putting real live people on it.
3 Likes
I would say progressively acclimatise to endure losses. How do you get rid of the feeling of cold when jumping into a pool? Entering warmer pools first.
1 Like
Very interesting analogy. And it really makes sense when you put it like that so I’ll definitely keep demo trading until my boat stops sinking😅
Well I will recommend Mark Douglas Trading in the zone and The disciplined trader, The books will answer your questions the best way
2 Likes
Meditation can remove fear from the mind. Meditation clears the mind.
1 Like
Fear of losing in the forex market is real. There are different types of traders in the market. There are some who lose hope and stop trading once and for all. On the other hand, there are traders who overtrade and lose more money. A trader becomes successful when he is ready to take on challenges but only after proper market analysis.
It’s good to see a lot of new traders taking interest in forex trading. They must ensure that they put their efforts in the right direction to make the most of the market moves. Stay open to learning from all the traders you meet and all the trades you make.
1 Like