Crying over spilled milk is something that most people do at least a couple of times in their lifetimes. But with some forex traders, it definitely is a very commonly recurring phenomenon. Crying over lost opportunities to profit from forex trading can be very destructive in the long run, especially when such incidents keep repeating over and over again with frequency. Forex traders who have such experiences often tend to freak out and finally end up with a phobia of trading and majority of them do end up quitting forex trading altogether.
If you want solutions to such dangerous issues and want to avoid them from hampering your forex trading career, you must read through this entire article. The best way to start of course is by finding out what stops you from carrying out your trades at the time of opportunity.
Fear and Losses Go Hand in Hand
Fear seldom contributes to creating anything positive and it is by far the most common reason that stops novice forex traders from carrying out their trades according to their original plans or at the opportune moment. This fear could again stem from a variety of reasons like having a previous experience of massive amounts of losses (this could be recent or old), due to engaging in trade with high risk money that cannot be afforded to lost and also when there is lack of confidence in the strategies and techniques that are being used to place the trades.
Solutions to Tackle Your Fear
Whatever be the reason propelling your fear, they need to be pinpointed and only then can they be tackled appropriately. If you lack confidence in your strategies and techniques, that clearly means that you need to work a bit harder on the training front. Get more training, practice more and of course – master your strategies well before engaging in any more trades.
If you fear losing money, you must stop trading until you can manage to invest some safe money in forex trading. Trading with high risk money, which if lost will tear your life apart is not forex trading. It’s called gambling, so stop gambling.
If previous losses stop you from trading properly then you need to follow all the solutions given in this section because you are probably doing everything wrong, from trading with high risk money to not having enough skills or practice before engagaing in live trade.
Don’t Be a Doubting Thomas
Everyone knows about the story of the Apostle Thomas in the Bible who was a skeptic. Doubts are good to a certain degree but when left uncontrolled can be dangerous. There are many doubting Thomases in forex trading world as well. These folks refuse to accept the effectiveness of any trade signals that they receive. Actually they do want to believe but their doubts keep raising their ugly head and keep sounding alarm bells in their minds. Amidst all this confusion the trade opportunity passes away and the doubting Thomas is left with nothing but remorse and regret about the unutilized opportunity.
Doubts indicate a lack of confidence and knowledge. So quit doubting and gain more knowledge. By gaining more knowledge you will feel more confident about relying on the trade signals and using them to your best advantage.
Develop Your Self Confidence
As mentioned in many of the previous posts, forex trading is more about having the right mental perspective and psychological attitude than being about strategies and skills. It really does not matter how well-trained or how well-skilled you are, if you cannot muster up the courage to pick yourself up and face the challenge, how in the world do you suppose you will win?
You may be the best athlete, but if you sit at home and not attend the Olympics, will you ever be recognized or would you even stand the chance of winning? So, first of develop your self-confidence and believe in yourself. Believe that you can indeed win at forex trading and trust that it is indeed possible for you.
Hindsight May Sometimes Hinder
Another important issue that bothers newbie forex traders is their hindsight and regret over things that could have happened. How many times have you caught yourself saying “If only I had done this, I would have gained so and so…”? Hindsight is useful when you are trying to establish a pattern in your trades and trying to learn something positive out of it, but if the hindsight is not serving any other purpose other than deteriorating your confidence and motivation to trade in future, then it is highly dangerous and needs to stop immediately.
Display the Right Perspective
No matter how many times the importance of having a right perspective is mentioned, it never is enough. Here are some of the vital facts that every forex trader must understand and drill into his/ her mind.
Forex trading markets are very volatile and forex trading itself is a high risk endeavor. It is impossible for even the best of the expert forex traders to have only winning trades and losses are a natural ingredient of this business.