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Main Fears of Forex Traders

1:05 PM Feb 19, 2020
8811
Trading Psychology

We are going to discuss an important topic. Some Forex mentors say four main Forex trading fears exist, but some disagree with that. So how to overcome your fears in trading?

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.

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market cryptocurrency market figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex useful tips motivation on Forex expanding triangle 5 candlesticks signal confirmation loss control currencies Germany market execution instant execution taxes laws remote trading withdrawals time management British pound BoE unemployment rate interest rate breakout Sydney session Tokyo session disposition effect continuation pattern golden rule enter trade high volatility risk trading trading discipline trading strategies Forex risks trading risks systemic risks technical risks force majeure criminal risks self-education self-study professional education Forex forecasts partnership program Forex bonuses Forex contests self-employed trader bars harami cross engulfing belt hold sandwich piercing line dark cloud cover marubozu three black crows upside gap two crows multitasking wedge figure trading sessions major trend million financial literacy budget goal setting Forex resources Myfxbook useful tools account analysis account monitoring trading analysis economic sentiment consumer price losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance
trading mindset beginners novice traders trading strategy losses forex mistakes trading habits trading plan forex trading women in Forex female traders risk management broker profit trading instruments pairs price advantages of forex leverage FXCL investments copy trading advantages of Forex social trading professional traders trading psychology demo trading buy/sell bid/ask spread Metatrader 4 market analysis technical analysis fundamental analysis trade trading platform Forex trading novice trading dealing with losses charts timeframe indicators MetaTrader 4 trading routine support level resistance level trend low-hanging fruit stop loss loss trading history long-term goals open trade close trade daily charts swing trading intraday trading scalping trading setup Forex traders bullish bearish resistance support MA 200 trend trading professional trading EMA EA daily chart weekly chart Forex news highs lows account type cent trading Mini Micro Cent Partnership commission fees trading terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro Canadian dollar Japanese yen Mexican peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system COVID-19 coronavirus lockdown checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart gold XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency terminology Margin Call long position short position buy sell candlestick chart bar chart line chart range market channel high low ADX OHLC patterns profit level martingale aggressive EAs VPS demo account EA tester trading signal chasing the market clicking the button oil trading lot EUR cent account Forex mentor novice trader emotions control fear psychological level round numbers Key Levels indicator MetaQuotes iOS Android mobile trading mobile terminal VPS server financial portals day trader position closing short timeframe fast trading news site news portal FXStreet Investing.com Forex Factory ForexLive DailyFX CPI PPI economic indicators Non-Farm Payrolls monetary policy FOMC retail sales inflation rates program installation intuition apps ECN brokers market makers financial markets indices commodities stock metals trading robots Forex mentors confidence bias low-frequency trading set and forget end-of-day trading exit trade auto-trading OCO trailing stop auto-management competitive advantage partnership IB referral Introducing Broker Sub-IB EURGBP EURCHF Donald Trump Twitter exotics minors trading patterns wedges pennants triangles breakout trading range trading confident trading trading goals japanese candles stars morning star evening star Japanese candles inverted hammer hanging man abandoned baby spinning top spinning bottom inverted head and shoulders trading figure trading pattern beginner mistakes unrealized profit/loss Forex scammers money managers overtrading Trader’s Cabinet MT4 trading styles exit point Forex myths currency bitcoin ethereum tether litecoin tick chart education European session cross currency GBP/USD GBP/JPY M15 intraday strategy American session USD/CAD M5 Bollinger Bands MAM investing high water mark currency market stock market cryptocurrency market figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex useful tips motivation on Forex expanding triangle 5 candlesticks signal confirmation loss control currencies Germany market execution instant execution taxes laws remote trading withdrawals time management British pound BoE unemployment rate interest rate breakout Sydney session Tokyo session disposition effect continuation pattern golden rule enter trade high volatility risk trading trading discipline trading strategies Forex risks trading risks systemic risks technical risks force majeure criminal risks self-education self-study professional education Forex forecasts partnership program Forex bonuses Forex contests self-employed trader bars harami cross engulfing belt hold sandwich piercing line dark cloud cover marubozu three black crows upside gap two crows multitasking wedge figure trading sessions major trend million financial literacy budget goal setting Forex resources Myfxbook useful tools account analysis account monitoring trading analysis economic sentiment consumer price losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance