Day Trading With Too Much Fear
As I prepare for our first trade this week I would like to mention some of the reasons we did very well last week in our Forex Trading Room. I think it is very important to point out why we did so well. Day in and day out, our Forex professionals know that ‘fear’ can be a good thing when day trading, however, too much fear can be detrimental to your trading health.
Fear can help – Fear is not a bad thing after all, you should fear the market to a certain degree or you may let your Ego take over your trade and you may end up blowing your account up. Fear when harnessed properly can be an asset to your day trading, the enemy of trading is too much fear.
How to harness fear to make it work for you….There are some simple strategies that we teach in our forex trading room and one in particular is that it is important not to be afraid to lose.
1.) We are not afraid to lose
This is something taught day in and day out in our Forex Trading Room. As a trader, you need to simply view losses as part of your business. Any business has expenses in order to turn profitable. If you own a business the cost of ‘doing business’ would be the food at a food service business, or the materials at a manufacturing business.
In Forex Trading your overhead is broker commissions, equipment costs like computers. If you start to see a losing trade as part of your business you will focus on the end result not on the emotional swings of trading.
1.) We are not afraid to Win
I know this sounds silly but yes its true. Fact is that many people are actually afraid of success. Many people see success as bringing on another lifestyle and studies show people may actually fear the unknown. Yes its true, many people are just comfortable with losing and staying in their same old situation. Why is this? Well for one our state of confidence often determines how we will succeed in life.
Bottom line is stay confident when trading, keep some fear, however do not let it have an adverse effect on your trading success. I hope you all do very well in trading!