It’s another trading day and you turn on your PC to analyze the market, unlike most days, after just 15miniuites of scanning through your charts, you discover a perfect trade setup, this is GOLD, a traders dream and you will definitely end up smiling to the bank this time. Except that, you actually didn’t place that trade, rather you are full of remorse, ruing the missed opportunity to bag a whopping 150pip.
Does this sound like you or someone you know? When it comes to trading, fear can be a trader’s worst enemy. It prevents us from entering profitable trade setup, as well as closing our trades prematurely when we make a little profit. These are all symptoms of FEAR.
There are various types of fear but the biggest fear that is predominant in many traders is the Fear of loss – Because a trader is worried about taking a loss, if the market starts to dip, panic sets in and he decides to pull the trigger- close the trade, before trade matures to a good profit.
How do you tame this wide monster called fear?
1. Follow your trading plan and your strategy strictly.
2. Have a set and forget principle on your trades, the less you interfere with your trades the better you stand a chance at succeeding.
3. Before you place any trade, analyze your potential risk. You should know by now that no trade set up is 100% accurate, therefore always be prepared for potential loss. And try as much as risking only what you can afford to lose per trade.
I hope with this you will be able to eliminate fear in your trading.
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