If to ask a trader whether he/she is ever scared when trading Forex, everyone will tell you they are not. But, why exactly people get scared, and what does it mean to be scared in Forex.
Let's try to classify it.
There are 4 groups of scared Forex traders:
- Forex traders who are scared to open a trade.
Those are mostly newbies with newly created Live accounts. Those traders are afraid of taking a decision about direction of their position as well as timing. Here only practice and confidence in own trading system can help.
- Forex traders who are scared to stay in a trade.
Reason behind it: there are some profits made... How to protect them?
Those traders are simply unsure whether to stay longer in trade or close a position. Many ask themselves: what if I exit and the trade moves on without me? Etc, etc. The cure is again a well designed exit strategy and no greed. It is that simple, but not everyone can achieve it.
- Forex traders who are scared to close a trade with a loss.
This is the biggest group of scared traders. No one of course wants to exit with a loss, but at times market just doesn't allow to make any profits. There is no reason to blame yourself or the system that "accidentally stopped working", exiting in time with a loss that hasn't become a huge loss yet is the best thing to do.
- Forex traders who are scared to lose money in general.
Those are bad investors who shouldn't be trading Forex. Forex is one of the riskiest form of investing that implies high risks of Losing money. One should never trade in Forex with money he can't afford to lose. End of story.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment