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Dealing with Fear


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There are two kinds of fear in this world: legitimate fear and illegitimate fear. Legitimate fear is the kind of fear that is based on the fact that there is real danger. Illegitimate fear is based on perceived danger when none actually exists. Illegitimate fear can also co-exist with legitimate fear.

Fear in trading is both legitimate and illegitimate. Illegitimate fear is any fear that is not based on fact. It is fear based on a misunderstanding of the facts, over- exaggeration of the facts, or misperception of what the facts are or are not. The most common source for illegitimate fear is lack of knowledge. Take, for example, my incident with ghost stories. A bunch of us college-age guys sat in a room over a morgue, in the dark, telling ghost and horror stories that we had read. We scared each other so badly that none of us could move until daylight. We were literally frozen in our tracks — I mean complete physical paralysis. It was one of the longest nights of my life. Deep down inside, I knew what we had done, but I allowed my emotions to override any rational thought — actually, any thought whatsoever.

It is amazing how similar fear in trading really can be. For example, have you ever been involved in a trade risking a few hundred dollars where, as soon as it started to go against you, your heart rate increased and your palms became sweaty? Why is that? It is only a few hundred bucks! If you aren't willing to risk a few hundred bucks, why are you trading? It isn't about the few hundred bucks, it is about over-exaggerating the situation. The emotions are given more attention than they deserve.

Conversely, there is a very real fear concerning the overall ultimate outcome of any trading venture. The statistics back this up. It is a battle to balance the fear involved with trading against the expectation of making profits. On a single trade, the fear should not exist. But the fear from the probability of long-term success is lingering in the background, and causes many traders to try to change those probabilities one trade at a time. In the process of trying to avoid failure, they bring it on faster.

The first step to overcoming fear is to determine which kind it is. Kids are fearful of many things until they learn to understand that the fear is unfounded. Knowledge is the best weapon to fight the negative affects of fear in your trading. The more you know, the more you understand, the less fear will have a negative affect on your trading.

The knowledge you need can be acquired by experience, mentoring, or both. Experience can be a hard teacher. Many traders and investors (in fact, most) lose money and are defeated long before they can acquire the necessary experience. If you are to become successful in the markets, it may be a lot easier to invest in yourself through proper mentoring than to quickly lose more money than it would ever cost to learn the tricks of the trade from an experienced trader.

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  • 2 years later...

It’s not easy to be dealing with fear since we can make seriously big mistakes when we are scared or in fear so if we want to avoid struggling or losing unnecessarily then we must kill the fear and there to be fearless as only then we could be successful even that’s not easy.

I am able to deal with Fear so much better all with the support of super class broker OctaFX, it is a company with golden touch so whatever I do through them turns into Gold and I am able to change my financial problem life into a luxurious one. I can also make withdrawal of my profits instantly with their automatic system without even having to pay penny of fees.

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A person fears anything only when he is not qualified or skillful enough but for me I have got proper training and now I am amongst one of those successful traders so I have no fear but it was not this was till I joined Remote FX Traders program by YesFX Global, they provided me amazing opportunity to trade FX spot rates in real-time, via text chart, video, audio teleconference and even screen sharing so it was a beautiful learning curve for me.

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You are absolutely right, only low skilled Forex traders face this problem while good skilled Forex traders are much confident about their success. Learning, is the most effective way to be a confident Forex trader. Luckily, I used ‘TradingBanks’ trading broker as my demo trading partner. Because, I got huge educational facilities in my demo from this helpful trading platform that make me as a knowledgeable Forex trader. As a result, now I am a self-dependable Forex trader in my live account. In addition, I am very positive about my success. So, I suggest all new Forex traders, please use your demo account in proper way.

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Dealing with fear was the most difficult task especially given that I am a new comer and every penny of investment comes with great responsibility, I am extremely lucky that I am able to deal with my fear so well because of the Risk Free Option that I used with Nova FX, it allows me three chances that I get on my early trades so even if I lose I get refund for my first 3 trades which is seriously awesome.

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do not fear market. we trade with our belief in market. you join in with knowledge about market. each decision is a signal of our strategy. why we fear. if you do not confident . you can invest your money for other trader . some broker has grea money manager. you can try with liteforex. i has some money in this broker. i earned profit with them

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  • 3 weeks later...

fear in forex trading should have minimal well, because the fear that we will not evolve capital. it fears will hamper our trading. to minimize fear in forex trading we can trade with small capital used to like $ 1

yes but you invest your hard earned money, it is obvious that fear will be there but you should cope with and as you get experience it tends to get normal.

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Trying to beat the market or giving in to fear and greed can lead to cutting winners short and letting losing trades run out of control. achieving success is to create and follow a trading plan, a well-constructed trading plan. some traders are never know what their truly fear, the margin call level.especially rookie traders. I once a rookie too :), we all never want to had such event, avoid at all cost. but in fact we never want to this MC ever exist, and this my very mistake, result to not having fully attention of my account margin call, stop-out level. my past account are with brokers who offer high leverage, and killing stop-out level.
well, i'm now at more safest leverage account with 1:500 at Tickmill ECN account, a generous Margin call / stop-out: 100% / 30%. they even offer 15% deposit bonus, added to stop-out margin calculation, which an extra advantage into my trading account.

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yes but you invest your hard earned money, it is obvious that fear will be there but you should cope with and as you get experience it tends to get normal.

yes, we need to overcome the fear is well. we must come to terms with the fear if we want to succeed in forex trading. we can train mentally by trading with small capital of $ 1

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  • 6 months later...

I think the best way we can deal with fear is by having knowledge and experience, it is also important that we have solid plans which are the only way we could get success. I am able to gain this knowledge and experience thanks to Nova FX broker where they have really awesome education section available where we can learn things step by step and that’s seriously beneficial for us, so that’s why this is so good to work with.

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Dealing with fear is not anything easy and we need a lot of knowledge and experience to back us up in order to get results, I feel we will always fear things due to not having enough knowledge and experience, so the only solution to get rid of the fear completely is knowing what you do instead of relying on luck to get us through. I am sure that most new comers do that only, as they think they are some kind of superman which always get predictions right, so instead of focusing on proper way to trade, it is always luck that is their top priority in decision making and when the fail the fear level goes too high. I don’t fear anything at all knows and that’s due to OctaFX broker since they provide me the whole market coverage for free.

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I seem greed is much dangerous from fear. By the way, fear is also a common problem that is happen mostly by new Forex traders. After crashing my 1st deposit then I face this problem a lot. I gauss, low trading skills is the main reason of this problem. As I see, professional Forex traders do not care any movement of Forex market. Then, I took beginners training course of TradingBanks broker. That was very effective way of learning where I got proper direction of psychological trading.

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  • 3 weeks later...

I think it’s just the mental barrier fear and we need to be relax in order to prevent the fear from troubling us, but I do also think that fear at times for new comers at least is good, if we don’t have the fear then we might do too many silly things which can results into several losses, so that’s why we have to be very careful with these things. I am fairly lucky to have OctaFX broker at my corner given their lovely facilities which includes the giant rebate program where I am able to earn 15 dollars profits per lot size trade and that includes the losing trades too, so that’s definitely pretty cool thing to have.

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  • 1 month later...

According to my own trading experience, I know which traders have good knowledge on Forex market they easily can overcome from this irritating condition of trading. Actually, knowledge always grows confident. As, live market review of TradingBanks is my main source of confident. Because, I always get here fresh trading analysis (for all major currencies).

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  • 2 months later...

at one point i have to agree, on the other hand i believe it differs from one trader to another, depending on the trader, the platform demo or live, and the situation, some coup up faster than others but i honestly took some time from transiting to live and it took a toll on me, but it all went well in the end, one gets used to it one way or another, I did blow an account with hotforex when i first started, very small one and manged ever since, its something i dont regret

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  • 2 weeks later...

Dealing with fear is major requirement because when we fear too much even good habits go into hidden zone, so we need to be fearless, but of course it does not mean been careful since that’s completely different thing. When we don’t fear things we are able to perform better, but if we keep worrying or fear then we won’t get too far. I’m currently trading with OctaFX broker and with them, I gain so many benefits especially to do with their tidy benefits which include low spreads from 0.2 pips, high leverage up to 1.500 while there is also incredibly smooth trading platform which works so nicely and helps me out to succeed easily without facing too much issue at all.

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What can really be a good support in a fight with fear in trading is strict money management plan and well-considered trading plan. Trading risks should be limited and losing trades should be taken as an essential part in trading - something that leads to success. It should provoke any negative and positive emotions - you should be absolutely indifferent to it.

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  • 3 months later...
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