Fear is commonly known as one of the worst enemies of forex traders. This means that the successful forex trader must learn the correct strategies of facing and defeating any fears they may have or develop. One of the simplest strategies of facing your fear head on is normally to acknowledge its presence, take a deep slow breathe and say to yourself, " I am more powerful than this fear, I have total control over fear, and I am going to overcome this fear". This simple strategy is amazingly effective in reducing your sensitivity to the fear or making a move in forex trade. Essentially, courage has never been the absence of fear but the ability to move on even though you are actually afraid.
There are several strategies of facing and overcoming fear which include:
Accepting responsibility: The first step towards overcoming fear begins with your readiness and willingness in taking responsibility for your fear. Accepting that you are the one who has fed the fear harassing you during trading normally helps you to put this said fear into perspective and at the end of the experience you will end up starving it as you prepare yourself to look for an alternative thought process. When you accept fear as your responsibility you give yourself a handle that will help you take control of it.
Identify your thought choices: Fear is an emotion that is normally conceived by your thought choices. As such, the moment you realize that fear start arising from your thought choices, you must be willing to alter the choices that created that fear. The most obvious thought choice for a person in forex trade who fears making a loss is that he is actually saying to himself in the subconscious mind, "I decided to be afraid of losing money". If you are this trader, it is possible starve this fear and consciously make a different statement such as "I choose to stop fearing losing money because I believe that losing money is an integral learning part of the forex business." The only way to evict fear is by providing yourself the opportunity to make such a fundamental choice.
Accept to take risks: As a budding forex trader, you must accept that this business, just like any other, involves taking a considerable amount of risk. Forex trading involves trading in percentages and as such not all ventures will turn out positively. Any trader who does not honestly and candidly accept this fact will not have the commitment to trade fully until they succeed. Such a trader will very easily lose his self-confidence and the ensuing frustration will lock him permanently in a vicious cycle of doubt and fear. Instead, the acceptance of this fact that risks are normal will give the trader with an optimistic commitment that will not be quenched by any negative outcome.
Remove any way of sabotage: Any forex trader knows that particular level of trading where they are comfortable because it is familiar ground. It is very easy to get stuck at that level because there is no level of risk that is involved unless you want to move further up. This makes it possible for hidden fear to create a form of self sabotage which is normally disguised as formula for self-preservation. Many traders will fear moving to a higher level because they are afraid of getting embarrassed should things not happen according to their new expectations. This creates an excuse for many traders to accept the status quo even when that position is no longer profitable.
Another form of self sabotage involves trying to initiate a trade that is not anywhere near his normal requirements and when it does not work out he consoles himself that it was not going to anyway. This stems from the creation of a protected comfort zone from which a trader is afraid of moving out. The only way you will eliminate self sabotage is normally be recognizing that it exists and thereafter do everything you can to deal with it.
Find out more about trading psychology and learn how forex trading success can be more about your mindset and less about the markets.
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