Fear causes lots of problems for novice traders. It breeds self-doubt and eventually, they miss out on excellent trading opportunities.
Some fears might even make you abandon the whole idea of coming to Forex. We’ve got to fix that. Let's take a look at the main concerns of traders and then decide what to do with them.
Fear That Forex Is Just a Lottery
This is probably the most common myth and it is expanding due to dissatisfied traders who have failed to achieve success in the market. And the worst thing about it is that this might be due to their mistakes or neglect of the basics of Forex trading. But no one wants to admit it’s their own fault.
Of course, at some point, you may also think that you are being deceived. But let's look at the results of other completely real people. For example, you can see the results of traders around the world who provide their signals through different platforms. You can trace the trading history of hundreds of people during a year or more. Everyone has their ups and downs, but for the most part, they have chosen the right strategy and now make real money on Forex.
You have as many chances as other traders do. The main thing is not to give up and continue to search for your own unique approach. And of course, always remember about the three pillars of Forex:
- Trading strategy
- Trading plan
- Risk management system
Fear of Loss in Trading
The most justified fear since only about 10% of traders achieve success on Forex, according to statistics. But let's look at this data from another perspective. There are several million traders on Forex, so hundreds of thousands achieve success. So it sounds completely different.
Of course, many traders face losses, and it's tough to succeed throughout their careers. Moreover, such statistics are not unique. 95% of all new businesses close within the first 1-3 years. However, this does not mean that you should not even try or must reconcile yourself and work under someone else’s leadership for the rest of your life.
Starting to trade on Forex, remember one crucial thing - it will not work right away. It is already a common fact that you must devote 10,000 hours to any occupation in any field to succeed. That's why you have to understand how to overcome the fear of loss in trading. Some millionaire traders took 3 to 8 years to learn how to make real profits on Forex. So don’t give up too soon.
Fear That You Won’t Succeed
The most justified fear since only about 10% of traders achieve success on Forex according to statistics. But let's look at this data from another perspective. There are several million traders on Forex so hundreds of thousands achieve success. It sounds completely different, right?
Moreover, such statistics are not unique. 95% of all new businesses close within the first 1-3 years. However, this does not mean that you should not even try or that you just need to reconcile yourself and work under someone else’s leadership for the rest of your life.
Starting to trade on Forex, remember one important thing - it will not work right away. It is already a common fact that you need to devote 10,000 hours to any occupation in any field in order to succeed. Some millionaire traders took 3 to 8 years to learn how to make real profits on Forex. So don’t give up too soon.
Fear That You Will Stop to Profit
This point applies to those traders who have already experienced the joy of receiving stable earnings on Forex. It may seem to them that their profit is just a streak of luck. And it is possible as well. But there is another option.
There is a chance that you managed to find a good strategy and establish an excellent trading system. Just relax and keep going on with what you’ve been doing before. If your “luck” suddenly stops, don’t freak out. Analyze your trading history. The beginning of a losing streak can have quite understandable explanations. Which brings us to our next point.
Fear That Your Strategy Will Stop Working
It is quite a reasonable fear since it’s very likely to happen. The Forex market is constantly evolving which means that the strategies and approaches that worked before might simply become outdated.
Do not despair. Any strategy or Expert Advisor (if you use one) can be improved. It is important to conduct periodic diagnostics and not to miss the moment when the system really stopped working. It will be easy to catch this moment. If the periods of failures began to increase sharply compared to the past and your trading journal didn’t provide any other explanations for this situation, then it might be the time to update your strategy.
Fear Not to Find the Perfect Strategy
This fear is easy to handle. An ideal strategy simply doesn’t exist, so stop looking for it. If someone gives you a 100% guarantee on some strategy, or a trading robot, or anything else, then these are just charlatans. The Forex market is so unpredictable that it is simply impossible to predict its further development with accuracy.
You will never reach 100% but you can get as close to it as possible once you hone your skills and select and work out the three pillars of Forex mentioned above. And of course, don’t forget about the correct trading mindset. The one we’re actually talking about right now.
Fear That the Others Won’t Accept Your New Career
Unfortunately, most people think stereotypically. Too many people think that a job is an exclusively eight-hour work for five days a week. Everything else is simply frivolous and just a waste of time.
My advice to you - do not try to re-educate humanity. If the opinion of others is really important to you then try to keep your Forex trading in secret until your hobby turns into a real career.
How to Deal with Your Fears
The list of fears does not end with those described above. Each trader has own concerns:
- That Forex will close depriving them of additional income
- That the profit will come but not as high as you would like it to be
- That some money managers will deceive you
Obviously, I cannot tell you about each situation individually. However, there is a universal way to deal with fears - you need to face them. As soon as you are sure that you have found a reliable broker, that you are receiving signals from reliable sources, that you are working with decent IB and money managers, it's time to go over yourself and move forward.
Believe me, over time, all fears will disappear and be replaced by self-confidence, which is necessary for any successful trader. And I can only wish you good luck with this.