How to overcome the fear in trading! | Forex Factory

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How to overcome the fear in trading!

  • #1
  • First Post: Sep 24, 2013 10:57pm Sep 24, 2013 10:57pm
Hi everyone!Today I start this thread in order to discuss one of the most serious psy problem in trading is FEAR!Fear of losing money is my FX mentality!
Maybe I have a good system,but I can't win lagerly(I don't lost my money)!I have a 2k$ in my acc,but I only can trade with 0,05 size lot,because sometime I fear that I will blow all my profit if I trade with bigger size like 0,1-0,2 if in this case my system doesn't work well!
Can someone help me with this problem!
  • #2
  • Sep 25, 2013 1:18am Sep 25, 2013 1:18am
My advice would be lower your lot size to the level that you are comfortable trading without fear settling in. It might cut your profits but it will cut your losses also.

Another piece of advice is try taking $50 or so and trading with that rather than your full $2k. I was told something that took me a long time to accept but its very true. Once I accepted it, I was able to really get in a zone and improve my trading. The advice is if you can't trade consistently with $50 you won't be able to do it with $5k. The amount of capital doesn't matter, the results do. So if fear is settling in, make a few changes (even if they are not the ones I suggested) and see if that will help you out. I think lowering your trade size will help you and maybe withdrawing some money will help also.

If you see your results improving you can then deposits some funds to increase your lot size if you want. I wish you much success.
  • #3
  • Sep 25, 2013 2:37am Sep 25, 2013 2:37am
you need to accept fear as an integral part of all your trading endeavors. as a speculator you´re paid to take risk - of course it´s scary.
  • #4
  • Sep 25, 2013 2:47am Sep 25, 2013 2:47am
we need to take responsibilty for our trade and clearly accept the risk involved and not thinking that we do accept it by just placing a trade, the read and reread of "trading in the zone" will help.

Some peolple will find it very difficult to fully accept responsibilty based on their personality and character, the mind factor is a difficult one to overcome specially in those modern times, but it is essential in my opinion, more important than technical and fundamental.

In brief to give you some a be more pragmatic way, you may accept the loss before you take a trade, if you risk $100, accept the fact that you have already lost that @100 dollar.

But each of us is different and you may need to find your own way.
Wherever you go, there you are.
  • #5
  • Sep 25, 2013 3:03am Sep 25, 2013 3:03am
  •  Leebos
  • | Joined Aug 2012 | Status: I do not believe in a fate that fal | 75 Posts
Try breaking your position up into 3 smaller positions for the same trade i.e. 1 x 0.01, 1 x 0.02 and 1 x 0.04
Pick trades with decent target expectations and cash in your 0.03 as it reaches or exceeds a profit that matches your S/L risk with the remaining two positions open.
At least then you can relax knowing that you really cannot loose with the two remaining positions, and hopefully profit from them all.
Using the above example, you have now raised your overall lot size from 0.05 to 0.07 with a much less risky scenario.

As your account grows in increments of $1000, increase your individual lot sizes by the same ratio
  • #6
  • Sep 25, 2013 8:00am Sep 25, 2013 8:00am
Quoting Leebos
Try breaking your position up into 3 smaller positions for the same trade i.e. 1 x 0.01, 1 x 0.02 and 1 x 0.04 Pick trades with decent target expectations and cash in your 0.03 as it reaches or exceeds a profit that matches your S/L risk with the remaining two positions open. At least then you can relax knowing that you really cannot loose with the two remaining positions, and hopefully profit from them all. Using the above example, you have now raised your overall lot size from 0.05 to 0.07 with a much less risky scenario. As your account grows...

Sounds like a good plan
  • #7
  • Sep 25, 2013 8:24am Sep 25, 2013 8:24am
I managed to overcome my fear by proper risk management. I usually open 0.5 lot positions and risk 0.5-2% per trade.

One option is to start from smaller lot sizes and then gradually move up
  • #8
  • Sep 25, 2013 8:41am Sep 25, 2013 8:41am
Quoting Status Quo
My advice would be lower your lot size to the level that you are comfortable trading without fear settling in. It might cut your profits but it will cut your losses also. Another piece of advice is try taking $50 or so and trading with that rather than your full $2k. I was told something that took me a long time to accept but its very true. Once I accepted it, I was able to really get in a zone and improve my trading. The advice is if you can't trade consistently with $50 you won't be able to do it with $5k. The amount of capital doesn't matter,...
Well said. I second this

I have a large account, but try to open as small positions as possible.
Sometimes it just feels a little off.. Am I wasting time?! But no.. In the long run, this is by far the safest way to go!
Or atleast, I feel like it is for me
  • #9
  • Sep 25, 2013 8:50am Sep 25, 2013 8:50am
Thanks for all u guys for helping me!
How do you feel if you encounter a serial of lossing trades?I guess it's very terrible,right?
  • #10
  • Sep 25, 2013 8:52am Sep 25, 2013 8:52am
Quoting Scalptastic
I managed to overcome my fear by proper risk management. I usually open 0.5 lot positions and risk 0.5-2% per trade. One option is to start from smaller lot sizes and then gradually move up
How is size of your account?
  • #11
  • Sep 25, 2013 10:36am Sep 25, 2013 10:36am
Quoting kaka_ht
Thanks for all u guys for helping me! How do you feel if you encounter a serial of lossing trades?I guess it's very terrible,right?
I felt quite sick actually... Like I was comming up with a fever... But I took a huuuge hit
Don't never wanna do that again...
  • #12
  • Sep 25, 2013 10:51am Sep 25, 2013 10:51am
Quoting Leebos
Try breaking your position up into 3 smaller positions for the same trade i.e. 1 x 0.01, 1 x 0.02 and 1 x 0.04 Pick trades with decent target expectations and cash in your 0.03 as it reaches or exceeds a profit that matches your S/L risk with the remaining two positions open. At least then you can relax knowing that you really cannot loose with the two remaining positions, and hopefully profit from them all. Using the above example, you have now raised your overall lot size from 0.05 to 0.07 with a much less risky scenario. As your account grows...
Thanks for sharing your wisdom
So sorry for always replying late! But I got 2 Jobs!!
  • #13
  • Sep 25, 2013 11:04am Sep 25, 2013 11:04am
Quoting Leebos
Try breaking your position up into 3 smaller positions for the same trade i.e. 1 x 0.01, 1 x 0.02 and 1 x 0.04 Pick trades with decent target expectations and cash in your 0.03 as it reaches or exceeds a profit that matches your S/L risk with the remaining two positions open. At least then you can relax knowing that you really cannot loose with the two remaining positions, and hopefully profit from them all. Using the above example, you have now raised your overall lot size from 0.05 to 0.07 with a much less risky scenario. As your account grows...
Nice .... i already try and ended well , it's all about Money Management that I prepare to loss if goes different way
  • #14
  • Edited 11:41am Sep 25, 2013 11:27am | Edited 11:41am
Dear Kaka.. fear of losing money or "FEAR" overall in trading bursts out from one major part of psychy.. and that is.. Confidence.. in plain English is summed up to this: "not knowing what your doing".. lack of confidence in what your doing will create fear in any aspects of life, but more so in trading bcz we are immediate and directly dealing with Money.
the simple question to ask yourself is: .. Am I confident enough about my system, method, strategy or ME making me money?.. if your shaky on that answer and you are the only person who truly would know with full honesty to yourself then that's where you got to start. Think of your true honest feeling when you put up a trade or bunch and weighing in the results.
.. runs of losing trades and down cycles or other obstacles (and it's a given, it happens to all) only overcomes by confident trader being confident in his/her system or him/herself as just being part of the deal and will be recovered without panicking and etc, . Money management goes long way to help with Fear, but its not everything and its just part of a good system or a traders arsenal.. for a fact that, its humans nature that does not like to lose money period, by little or a lot or even the money that has found in the street or don't need or depend on.. a good money management loss is only bearable when one knows or confident enough that its just a loan to the market and will be paid back.
anyways..
I suggest to reanalyze your whole trading philosophy from grounds up.. start from A which is to decide what style of trader you want to be to begin with or even your capable of being one as such due to personality, time, capital, life style and etc,.. and move on. once you get the basic out of the way then you got to really work that system and know it down to the crust of it.. you got to know it and it's variables from inside out like your life is dependent on it if you want to be a player in this profession.. you got to love it, work it and live it, till you can feel and touch every curve of it by heart. Then and only then you are on your way to over come this thing called FEAR as a result of confidence building up in what you do.

I hope it helps you out brother.
Passion, Persist, Patience, Protect
  • #15
  • Sep 25, 2013 9:51pm Sep 25, 2013 9:51pm
Quoting FXEmpire
Dear Kaka.. fear of losing money or "FEAR" overall in trading bursts out from one major part of psychy.. and that is.. Confidence.. in plain English is summed up to this: "not knowing what your doing".. lack of confidence in what your doing will create fear in any aspects of life, but more so in trading bcz we are immediate and directly dealing with Money. the simple question to ask yourself is: .. Am I confident enough about my system, method, strategy or ME making me money?.. if your shaky on that answer and you are the only person who truly...
Thank you so much,FXEmpire!It's very your big help for me!I'm very appreciate it!I will try to improve my psy problem,I know I have to it if I want to be sucessful in this business!
  • #16
  • Sep 25, 2013 10:12pm Sep 25, 2013 10:12pm
Its not rocket science.

Trade more.
What is any ocean but a multitude of drops?
  • #17
  • Sep 26, 2013 2:23am Sep 26, 2013 2:23am
Quoting kaka_ht
{quote} How is size of your account?

I have two 5k accounts.
  • #18
  • Sep 26, 2013 3:21am Sep 26, 2013 3:21am
Quoting kaka_ht
Thanks for all u guys for helping me! How do you feel if you encounter a serial of lossing trades?I guess it's very terrible,right?
This can happen to anyone,
The best way to deal with this is: Update your trading your journal and leave your trading desk either for the day or for the next few days.
Take a break and clear your thoughts
  • #19
  • Sep 26, 2013 3:47am Sep 26, 2013 3:47am
I recommend Trading in the Zone.
besides take a look at your system/method. How many trades you won/how many tades you lost - are the winners biger than loses? are there more winners than loses? if winners are bigger than loses and you have more winning trades then you'll be earning.
maybe your fear comes from unproper mm? set your s/l in a way that after it closes your loss is a bit below 1%. will you feel bad if you lose 1%?
maybe your fear comes from the fact that you observe the amount of money you lose, not the percentage/pips. and once you lose 2% for example - you lose 40$ - you think - 40$ is a lot, I could buy pair of jeans for it, or go out for few pints. treat loses like money invested in education, and if you look at loses look at it in a different way - I just lost 1% sounds better than I just lost 20$, and in fact you lose only 1%.
On my way to financial independence - if others can do it - I can do it
  • #20
  • Sep 28, 2013 7:01am Sep 28, 2013 7:01am
Why don't you trade on demo or very small account and get someone you trust to use a trade copier with the size of the account at their discretion? You need not know about it . But you've got to trust them
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