Forex Trading Psychology: Levels of FEAR

Results 1 to 5 of 5

Thread: Forex Trading Psychology: Levels of FEAR

  1. #1
    Member asiaforexmentor's Avatar
    Join Date
    May 2011
    Posts
    49
    Thanked: 0

    Default Forex Trading Psychology: Levels of FEAR

    Forex Trading Psychology: Levels of FEAR
    aForex Trading Psychology: Levels of FEAR

    FOREX TRADING PSYCHOLOGY



    People can always relate FEAR to forex trading.
    The fear of losing money.
    The fear of losing that trade which is too much for you to handle.
    However what most people do not realise is that there are different levels of fear.
    Eg.
    When you can afford to lose that trade, (which you still do feel fear)
    you are still able to think rationally and life goes on.
    (ALTHOUGH YOU STILL DO NOT WANT TO LOSE THAT TRADE)
    In the example above, fear is definitely in our emotions.
    But because the level of fear is low, we are able to handle the fear and still think rationally.
    HOWEVER,
    Eg. your forex trading capital is $10k.
    Your current open trade is now losing -$5000.
    And thatís half of your capital.
    Or worst to say, thatís half of your life asset. (Money you canít afford to lose)
    Forex Trading Psychology Ė Fear kicks in. (This time in higher dosage)
    Then you start seeing your open trade grows to negative -$6000.
    Your Fear level increases, you can feel your heart beat racing.
    And sure enough, your worst fear arrived,
    The trade increases to negative -$7000.
    Forex Trading Psychology: Levels of FEAR

    Your level of fear had reached its final peak level.
    (you know it when you feel):
    - Desperation
    - Your face turn black
    - You isolate yourself
    - You start blaming people, things, events
    - You pray
    When you feel this level of highest fear.
    You canít think rationally any more.
    You know that you canít think rationally any more when:
    - You have decided to increase lot size on your next trade
    - OR You decided to go ALL IN on the next trade
    You want to get revenge on the market.
    You now feel HATE and ANGER.
    Forex Trading Psychology: Levels of FEAR

    And sure enough, when you start to do things irrationally.
    That is the downfall of your trading career.
    So you see, there are different levels of fear.
    And the highest fear can lead to other emotions like ANGER & HATE.
    When you start to do all the above.
    You know you have reached your highest level of fear.
    It is time to stop trading for a while.
    Go get a rest, a shower, a walk.
    When you feel that you have calm down and begin to accept things.
    I want you to think of what went wrong. (not to blame others)
    but what mistake did you made in the trade.
    Good chance is that you are risking too much.
    And i want you to WAIT and NOT trade until your feeling of hatred, anger and revenge is gone.
    That is when you are able to think rationally and go back to fix the problem.
    Remember, forex is a journey and not a one time success.
    Most traders want to make big bucks in a few trade. But eventually lose it all.
    Professional full time traders are ones who trade consistently and happy with reasonable profits.
    Let me know if you had experience the above before and what you did, or what happen?

    Ezekiel Chew
    Asia #1 Forex Mentor
    Asia Forex Mentor's forex course is now FREE!

    A complete professional forex trading system that even newbies can apply instantly.

  2. #2
    Member
    Join Date
    Jun 2013
    Posts
    74
    Thanked: 0

    Default

    I think People are very exited to enter in market but one or two time trading with real account make them coward when they are having loss. They do not pay much attention to make good analysis , as market goes some pips against they close their positions due to the fear of loosing more . this practice brings continuous loss for them.

  3. #3
    Senior Member HundEr's Avatar
    Join Date
    Jun 2015
    Posts
    173
    Thanked: 0

    Default

    I guess fear and greed are the main obstacles for traders.

  4. #4
    Member
    Join Date
    Jun 2013
    Posts
    85
    Thanked: 0

    Default

    Yes fear is natural when your hard earned money is involved , but you should take in care that you should not become over cautious due to fear.

  5. #5
    Senior Member
    Join Date
    Feb 2016
    Posts
    259
    Thanked: 1

    Default

    in ro ham eslah kon:
    In my view any emotion is dangerous and can be a reason to stop us achieving something worthy, it’s the reason why I prefer to go with OctaFX broker since they’re helping me massively with their outstanding conditions and features especially to do with minor spreads from 0.2 pips to high leverage up to 1.500 while there is also massive bonus on deposit which is up to 50% and is use able too, so that’s why my performance is so good.

Similar Threads

  1. Psychology Of Forex Trading
    By asiaforexmentor in forum Forex Strategies
    Replies: 6
    Last Post: 08-23-2021, 07:58 AM
  2. Psychology of Forex trading
    By warrak in forum Forex Brokers Discussion
    Replies: 1
    Last Post: 06-24-2021, 10:57 AM
  3. How to get rid of fear in trading forex
    By Giacinta loggia in forum General Forex Discussion
    Replies: 3
    Last Post: 12-25-2020, 07:31 PM
  4. Forex Trading Psychology: Levels of FEAR
    By asiaforexmentor in forum General Forex Discussion
    Replies: 3
    Last Post: 07-27-2019, 03:53 AM
  5. Aggressive trading psychology in forex market!
    By asiaforexmentor in forum Forex Strategies
    Replies: 0
    Last Post: 11-09-2011, 02:23 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Join us