How can u overcome the fear of losing while trading?
Originally posted by leebelisar
Originally posted by Purplemoney
Another way of overcoming your fear of losing is to reduce your leverage, you will then be unable to lose as much... but a trade off will be you wont be able to open a larger position.
Hi Purplemoney. Just a question. Can we really reduce the leverage in our own? Per my understanding, leverage is set by the broker itself. Its already pre-determined based on what type of trading account you have. Like for example my account. I have a classic account with GDMFX and it falls to 1:500 leverage. Please tell me further. I exactly do not know more about it as I do not trade live yet. Thanks.
Leverage provided by broker is maximum leverage which you can get from your broker. But this leverage is usually not available by default to reduce risk. You can manually adjust leverage by calling your broker or some brokers offer this facility on their trading platform.
Originally posted by ChampOriginally posted by leebelisar Originally posted by Purplemoney Another way of overcoming your fear of losing is to reduce your leverage, you will then be unable to lose as much... but a trade off will be you wont be able to open a larger position. Hi Purplemoney. Just a question. Can we really reduce the leverage in our own? Per my understanding, leverage is set by the broker itself. Its already pre-determined based on what type of trading account you have. Like for example my account. I have a classic account with GDMFX and it falls to 1:500 leverage. Please tell me further. I exactly do not know more about it as I do not trade live yet. Thanks. Leverage provided by broker is maximum leverage which you can get from your broker. But this leverage is usually not available by default to reduce risk. You can manually adjust leverage by calling your broker or some brokers offer this facility on their trading platform.
I think my broker offers the leverage by default in the trading platform. In the account types under classic account it says that leverage is 1:500. But anyway, I will check with my broker if this can be manually adjusted. I am actually not sure because I do not trade live yet. Still I'm doing a demo account. Thanks for your explanation anyway. Cheers.
Originally posted by leebelisar
Originally posted by ChampOriginally posted by leebelisar Originally posted by Purplemoney Another way of overcoming your fear of losing is to reduce your leverage, you will then be unable to lose as much... but a trade off will be you wont be able to open a larger position. Hi Purplemoney. Just a question. Can we really reduce the leverage in our own? Per my understanding, leverage is set by the broker itself. Its already pre-determined based on what type of trading account you have. Like for example my account. I have a classic account with GDMFX and it falls to 1:500 leverage. Please tell me further. I exactly do not know more about it as I do not trade live yet. Thanks. Leverage provided by broker is maximum leverage which you can get from your broker. But this leverage is usually not available by default to reduce risk. You can manually adjust leverage by calling your broker or some brokers offer this facility on their trading platform.
I think my broker offers the leverage by default in the trading platform. In the account types under classic account it says that leverage is 1:500. But anyway, I will check with my broker if this can be manually adjusted. I am actually not sure because I do not trade live yet. Still I'm doing a demo account. Thanks for your explanation anyway. Cheers.
You can decrease or increase your leverage by talking to your broker, traditionally a broker will prefer to offer you a high leverage as Leebelisar pointed out at 1:500.. You dont have to use the full amount of leverage but the broker will still set asside that much for your trading.
As mentioned though you can request your broker to change this on their system to which ever amount you're more comfortable with.
Originally posted by graceb
Originally posted by leebelisar
Originally posted by athamina
you can't
I do not get your point here. What do you mean by "you can't?"
Maybe it means that "you cant overcome the fear of losing while trading".
Of course you can, if you can justify a trade supported by your analysis you will feel increasing confidence rather than fear, its like walking in the dark.. if you have a torch (analysis) and can see ahead you will have no fear even if u take a wrong turn... however if you're walking in pitch darkness (no analysis) and can only gamble in the trade (guessing whether you're walking in the right direction) then of course you feel fear...
Think of it like a balancing scale, increased confidence= decreased fear and vice versa.
if you want to over come on your trading the only way you can do is that just learn, and then trade, because if you are not sure about what is trading and you are trading then it will give you loose, its better not to trade and trade when you have full knowledge, skills, and at least one good strategy.
Originally posted by YazanAnmarThe Forex market is like a predator that you might smell fear from, it can attack at any time and leave behind only the bones. How can the trader who is afraid of doing the wrong thing at the wrong time overcome his fear?!?! Please share your thoughts
I learned how to let go of losses from an interview with Patrik Antonius (a well known poker player). When he was asked how he handles losing over $100,000 in a few hours of playing poker game he explained that before the game ever started he let go of the money. He basically menatally prepared himself that it was already gone. With the lose of everything already faced he was then free to focus on making the right decisions (which is always independent of what those decisions do to the money).
Overtime most traders learn the same lesson: that your focus should be on making the right decision and not on the result of that decision. You have to learn that your goal isn't to make money - your goal is to make the right decision. When you make the right decision making money will always happen given enough experience and enough trades. Another common habit that leads to fear is focusing too much on a single trade. When you realize that each trade is only one in a long series of trades then your anxiety about losing will go away.
If that isn't enough you can always make a trading journal. You can write about the technical strategy you used, and track your emotions before, during, and after the trade. That usually helps to identify emotional and behavioral patterns.
Hope that helps...
Cheers.
The best risk that can ever be taken is none at all.
Fear is one of the two major emotion you have to check.Traders who are scared are mainly scared of losing therefore closing their trades very soon but will lose in the way of lost opportunity for profits.Start small, then work up to an acceptable risk level that you are comfortable with and still make some decent money,In that way your controlling your fear factor.
Fear is the one key which is also important to unlock the door of success because if you don't fear your trade which means you are not going to check all points to make sure that your trade is good enough to make money. By the way, I really like reading your article here and it has good information which will be useful for the forex beginners.