Forex What is your biggest fear in trading forex?

[Victorial]

With over 6 months of experience in forex trading, I still have many fears. These fears have undoubtedly me hampered from making anything meaningful and I have been experiencing losses over time. Below is a list of what I feared the most in trading forex and I wish you put an end to it to maximize profits.

1. Fear of entering a trade: I know and have worked with a proven strategy and it has been working for me trading a demo account. Still, I am always holding back when the criteria for my strategy are met. To confirm my analysis, I will place the trade on a demo account. And in the end, it will always go well. This will bring sadness to my face as I could have profited from the trade.

2. When to exit a trade: If I finally overcome the first challenge, getting over this is a problem. How much is too much? When is the right time to exit a trade if it is reading positive? I always fear that the trade might reverse and it will read erase all my accumulated profits.

So how do you overcome these challenges while trading forex? I do not want to continue this into the year as I consider going fully into forex trading.

 

[Kingstone]

I must admit that you are really a good trader because a good trader will never quit and will be looking for ways to be better each day. As for me, I have been trading forex for some time now and it has not been a smooth road either. My biggest fear is that I do not lose interest in forex trading because of my losses recently. It's like the signals are really bad in this period of the moment. The market is not moving too well and it has been affecting the signal channels I subscribed for.

Also, I fear that using a high lot size is very risky and can be profitable at times.

 

[Dita Walczak]

When a trader loses consistently he trades in fear. Which we usually call negative trading. If you trade with a negative mindset, you are more likely to lose. Therefore, trading should be done by managing psychiatry.

 

[cadelynch]

I fear seeing my money stuck during a deposit or a withdrawal. Though losing money is also quite scary but at least you are on one side. You know that you won’t see your money again. But what is scarier is not knowing where your money is or what went wrong that you can’t see your money in your account. Though I never had to face such an issue ever, I have heard some traders complain of such issues.

 

[Zonked]

I would like to answer the second question first. The best way to recognize when to enter or exit a trade is by creating a trading plan with your goals. Take time for building your plan, mention everything from your risk tolerance to your strategy and stick to it. At times when you feel confused about whether it is too much, should I stay or should I leave, your trading plan will give you the answers. Once you start working as per your rules, you won’t feel any hesitation or fear.

 

[Setho]

Whenever I am trading Forex or any other financial markets my biggest fear is that we should have a news that is going to invalidate my trading idea and my set up completely. I usually try to set up valid points and invalidation point for my setup and sometimes whenever there is a news or an announcement is usually makes the markets to react and that might not be good for me. This is why are usually trade with a stop loss in case there is a announcement that is not that is going to make price to deviate far away from my entry.

 

[Bookwormlux]

I do not really have so much fear when trading forex trading, because I know that it has most of the potentials that I need and I believe that if I dedicate a lot of time my mistakes and everything I will be able to make the money much more than I ever thought possible.

There are just so many opportunities in it and I am not afraid of anything at all in trading it.

From the little that I know, anyone who is really afraid in foreign exchange trading it is because they do not have the required knowledge that is expected of them.

That is why I'm always a proponent of the fact that individuals have to make sure that they learn what is expected of them and not just rush into something because they see other people making money from it.

That is the whole matter here now and anybody who thinks that he is afraid of anything, should check himself again and they will realise that they have not been able to take time and learn what is working that is why they are getting scared of the market.

If you are scared, you can also get a mentor that will continue to encourage you and put you through.

 

[LaneBall]

My biggest fear in trading forex is exhausting my trading capital. It's because of this fear that I avoid trading a high lot size that is very risky. It often hampers my decisions because I avoid many opportunities because of this fear.

 

[funmi]

Just like every other business environment or business venture, forex trading also involve a lot of risk. In fact in forex trading there are so many factors to determines how the market will move but and those things can not really be influenced by humans or the traders themselves rather they are largely determined by external factors which include abstract things which the trader can not easily influence like the forces of demand and supply. As such it is possible to gain some and lose some no matter how you try to make that plan and study the trends you never can tell what will eventually happen to and at the market. Hence one of my biggest fears has always been not to make losses as I have encountered that like two times during the period when I first started and I can not really say things are any much different for now. The only thing I can say for sure is that I now have a more better control over my greed level. As this is one area I suffered a lot then I was trying to make quick profit hence I suffered losses because my lot size was very high.

 

[Heiden Lang]

Just like every other business environment or business venture, forex trading also involve a lot of risk. In fact in forex trading there are so many factors to determines how the market will move but and those things can not really be influenced by humans or the traders themselves rather they are largely determined by external factors which include abstract things which the trader can not easily influence like the forces of demand and supply. As such it is possible to gain some and lose some no matter how you try to make that plan and study the trends you never can tell what will eventually happen to and at the market. Hence one of my biggest fears has always been not to make losses as I have encountered that like two times during the period when I first started and I can not really say things are any much different for now. The only thing I can say for sure is that I now have a more better control over my greed level. As this is one area I suffered a lot then I was trying to make quick profit hence I suffered losses because my lot size was very high.

True! Sometimes the losses in forex trading can lead to blowing up the whole account.
And emotional balance is very crucial for making right trading decisions, which results in successful trades.

 

[pawelkolasa]

I find the fear of being wrong very common among traders and sometimes I too face it. It becomes hard to not worry about making wrong trading decisions. But it should be understood that no one is a perfectionist and can not win without losing.

 

[Eduard Hahn]

Strategies work and fail. And so, your losses and profits are also natural. But what fears me the most is standing clueless in the market. I can’t see myself standing stagnant in the market while everybody tries new things to make profits. This is why I keep reading new strategies to improve myself as a trader.

 

[Shaf]

It seems you have found yourself in trading which is something I really envy. Developing a successful strategy is key to success and you have that, why allow fear to hold you back? I do understand that it's painful to lose money, but you have to get ready to do it.

If you were to meet any successful trader, they would tell you that 7 out of 10 trades that end is profits is as high as even they can go. You can't always win so use an amount that you can afford loosing, or idea stop loss that allows you enough room to make profits when out if the 10 trades you take, 7 are successful.

 

[shirleencomer]

Fearing of losing money and lack of market knowledge is a deadly combination. I don’t want to become baffled after a loss. Not because I lost my money but because I don’t know what I should have done. The other thing I fear quite a lot is not being able to withdraw my money because my broker doesn’t think that I am fulfilling the criteria I never knew about.

 

[Setho]

The forex market can actually be very lucrative but that does not mean that they are not up-and-downs especially if you do not know your way around it. This is why it is always advise that you should try to get a lot of sufficient knowledge before you are going to start trading with real money.

The first thing that I am almost always afraid of whenever I am trading Forex is for me to be chasing my losses. There is always some time where by no matter how good you have planned , the market is not going to go your way and you are going to try to make all the money in one trade . Most of the time this does not usually end well and it is always advisable that people should try not to trade with emotions at all.

I am also not very comfortable and I am scared of being caught unaware by news. The financial market is something that can be very speculative and as such whenever there is a very big news like a country invading another country there is a high tendency that stocks and figures are always going to plummet and want to avoid that.

 

[Revetment]

Honestly, I don’t fear anything anymore since I have seen so much in the market. My strategies have failed several times and I have blown my account twice and I don’t think there is anything worse than that.

 

[brindagladden]

I have heard stories of people getting their accounts blown up in the forex market. Nothing such has ever happened to me and that’s surely my biggest fear. It seems so scary.

 

[Jentacular]

I fear for my strategies to stop working one day. I know this is a wrong mindset because strategies do not always work. To overcome this fear, I regularly backtest them and try to improve them.

 

[Ponmo]

I don’t want to blow up my account. So far, it hasn’t happened yet. But I was close. I have this fear because I think my risk management needs work, but I take every precaution.

 

[glabella]

Fear while trading can make a trader anxious and restrain him from using his hard learned technical analysis. Significant losses in forex can lead to distress and emotional turmoil.