How to Overcome Fear When Trading
As traders already know that many novice traders are afraid when prices do not match what traders expect. Until finally the market itself will automatically determine whether the trader's open position will make a profit or a loss. Traders who have already panicked, will have limitations to think with common sense, and will always be trapped in their own fears. Here are some perspectives on trading:
The trader's doctrine is that trading is a brilliant way to earn huge profits.
Also instill the thought that the fear that traders suffer is just the past that doesn't need to be brought up again. What's more, if the trader is thinking of allaying fear by knowing the exact price movement. This is an incorrect thinking, because no one person or tool knows for certain what the price will be in the forex market.
Instill a pillar in traders, that the risk in trading will always be there. If the trader still cannot understand the risks of trading throughout the trades that the trader makes, it is certain that the trader will not succeed in trading forever.
Fighting Fear
The best way to fight fear of the market is to make a trading plan before making a trade. Understand in advance the risks that may occur, in the trade that the trader will choose. Also know the worst possibilities that might happen. This kind of risk management is very much needed to anticipate trades, in order to get results that are in line with expectations, but remain safe in carrying out them.
It should also be remembered that losing more than 10% of capital is something that must be avoided. That means, the possibility of a trader's risk of losing is quite large, because the maximum risk that can be tolerated is about 5% of the trader's account capital. If the transaction results that will be obtained are large, traders can also increase the size of the trade. However, keep in mind the trader that the risk of loss should not exceed the maximum limit, which is 5% of the balance. Because if in trading, the trader loses 5%, then the trader still has reserve funds in the account worth 95% of the capital that can be used to make other trades. This plan must be done and adhered to, to keep the trader's trading consistent.
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