Fear is a feeling completely natural for all humans and other living creatures but undesirable one in a trader’s mindset. It is the opposite emotion to greed. Fear stops us from doing risky things and it is necessary to have in healthy amounts. But if someone has an excessive amount of fear it will not allow moving forward and will prevent form doing things that may be necessary.

No one wants to lose money and after losing a trade you may become too fearful in making the next trade. But you should understand that your next trade can be a winning trade and cover the previous loss. Exiting a winning or a losing position earlier and missing good opportunities to make a profit that your trading strategy has predicated are true signs of having excessive fear that needs to be controlled. How to control the fear?

  • Fear usually occurs after a long series of losing trades and especially after having to “consume a larger portion of loss” than you emotionally was ready to do. You should accept the fact that all daytraders occasionally have losing trades and unless those losing trades are more than the winning ones you should not afraid of making your next trade.

  • Before making your trading decision think about the amount of money you don’t afraid to lose and never risk more than that amount. It will help you stay calm during the trading session no matter of the actual outcomes.

  • As with controlling the greed, you can overcome your fear by sticking to your trading strategy that clearly mentions your price targets and protective stops.

  • By relying on your trading strategy ponder before entering a trade and know how to react to stressful situations to be able to isolate the feeling of fear and make right decisions.
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