Trading fear is nothing but the fear of losing our hard earn money due to we are not sure weather we are able to get success or else we dont know how much capital loss it takes before i became a profitable trader as there will be loss of money as capital to trade.
From where this fear comes in,
- No proven strategy that provides profits
- Having lossess in the past
- No idea of how to control loss
- Weak mindset due to no trading knowkedge and expertise
What skills are required for trading?
- Patience – It is required just to not enter the wrong trade. Wrong trade does not take just stop loss it also hunt your whole psychology completely.
- Develop a complete strategy that includes how much you will trade, what you do and what you will not do right. So this removes 90 percent of fear. As you will not takes randome trades.
- Dont do overtrading – randome trades in the hope of profit is only reason of failure as a trading career. If one takes a trade for small profit ended up in big loss. Because this is the how market moves. It is not for randome money. It needs discipline approach and not like overtrading or trade anywhere and get profit.
- Develop a trading psychology – Trading psychology includes how you feel about profits and how you feel in losses, what is your mental status while profits and loss, how do you see loss covering, how do you behave feel and act in those extreme pressures of loss and profit. Weather your mind and thoughts get out or you handle situation calmly. So first understand yourself. Then after craft your trading psychology as how should you approach towards the sl and profits in the market. Right. This all things is refer as trading psychology.
- Trade analysis – before taking a trade do a complete analysis. Then only take a trade. Even though you have seen many profitable trades then also you will do analysis
- Have a list of what not to do in market hours – example no trade till 10.30 then no trades after 2 trades or 4 trades. One trade at a time. One trade in one hour. This rupes gives you enough time to silent your nerves and mental state to properly think and behave properly in the market.
If you follow all this, then you will develop skills and easily overcome the fear of trading..