Fear of losing money

Discussion in 'Psychology' started by makemoneyonline, Jan 31, 2021.

  1. Jenci

    Jenci

    That's the most important advice.
     
    #11     Feb 1, 2021
    makemoneyonline likes this.
  2. There is no fear and greed with demo account.
     
    #12     Feb 1, 2021
    llmflyfisher and makemoneyonline like this.
  3. Fear of losing money is quite obvious buddy. But you have to understand that it is part of a trader's life. You’ll not always get profits on your trades.
    I am not demotivating you but this is the reality of the forex market. But you can minimize the risk of losing money by acquiring proper knowledge of the market.
     
    #13     Feb 2, 2021
    makemoneyonline likes this.
  4. Andrea Wylan

    Andrea Wylan Sponsor


    I agree with this, unless you’re ready and willing to face your fear upfront and tackle it as a psychological experiment and healing. This is really about working through those parts of your subconscious that are getting in the way. This means fears and beliefs and experiences that are inside you that perhaps created trauma that haven’t been healed yet. They will come out in the market and get in the way!

    It’s not really about the technical skill of trading. They’re two separate things. Most traders deal with Technical skills and spend a lot of time learning, which is great, but they neglect dealing with their own psychology. So they end up with only half of the puzzle.
     
    #14     Feb 3, 2021
    llmflyfisher likes this.
  5. socool

    socool

    We all have the fear of something in our life, whether it is losing of money, or any other factor.
    For trading, it always help if you can trade in demo before going live. Sure demo has zero impact on psychology you had a mindset that the money are nothing but demo, but that is how you should not be focusing. You should be focusing on how to avoid making mistakes, or minimize the losses.
     
    #15     Feb 4, 2021
    llmflyfisher likes this.
  6. Laura48

    Laura48

    The fear of losing money keeps us on toes while we trade. Its the only force because of which we work hard, try to learn and develop our skills and become efficient here. Traders who are not able to handle the stress in the start, must begin with demo trading first.
     
    #16     Feb 8, 2021
  7. Nobert

    Nobert

    Depends on how serious one is.

    But you might be right. What is there tho (at least for me it was so), -
    joy & disappointment.

    I would get ,,happy'' if my demo trades performed well, and sad/disappointed if it didn't.

    It's a very personal thing. If newbs treat it as a game & aren't serious about the learning process, then yup, most will not experience it, but those who are serious, for them - it's a great learning tool both in technicalities & mental aspect/preparation for the real arena.
    (waited 2.5 years to start with real $, until became profitable on demo)
     
    #17     Feb 11, 2021
    llmflyfisher and murray t turtle like this.
  8. Andrea Wylan

    Andrea Wylan Sponsor

    That is so key to start with the simulator and fake money. If you don’t wanna do that and you want to rush into trading and making money, that’s a sign right there that you’re on the wrong path that is not sustainable.

    For those who really want to make a business of this or a profession where they’re successful consistently over time it’s one step at a time. When I work with traders it’s generally, creating a trading plan, learning a trading platform, getting a trading strategy that works overtime for people who have worked it accurately, And then starting to trade in the simulator.

    As you trade in the simulator, you can work on your plan, your strategy, your ability to discipline yourself through it, and start to bring forth all the psychological blocks to staying on plan.

    Once you do that successfully, then I suggest going live. Want to go live a new set of problems, psychologically, typically arrive. That is the hardest part of trading! Overcoming yourself, your beliefs, your traumas, and your past that will guaranteed show up in your trading.

    That’s also where most traders don’t want to look. They spend a lot of time on the charts and strategies trying to figure out what went wrong with little time looking at themselves in their emotions and their feelings and their impulses. That’s where I spend most of my time helping people. This is a long process. I suggest thinking in terms of getting a law degree or a med degree. You don’t do it in a week and start making money it takes Time and commitment. In the long run it’s worth it if you achieve what you set out to achieve. This is why only 5 to 10% of traders are actually successful, in my opinion.
     
    #18     Feb 11, 2021
  9. Nobert

    Nobert

    Sponsors like you raise the overall bar of this site.
    Well spoken.
     
    #19     Feb 11, 2021
    steve2222 and murray t turtle like this.
  10. %%
    Good points;
    thats why i trade inverse ETFs much different from cash longs.
    Cash ETF bull markets make higher highs/ higher lows/ higher gaps [some \LOL] higher closes each day/ higher weeks/ higher months/higher quarter closes.
    Of course option markets differ/huge bid ask spread. ......
    NEVER trade/ invest with funds you cant afford to lose. AND learn the big difference in SPY dd[drawdowns ]+ SPY loses/big difference .Dividends may help.
    This may not help in FEB\tend to be sell month.NOT a prediction/not bank insured.
    Most millionaires in stock /ETF markets bought for 40 year or are market makers/specialists........................................................................................................
     
    #20     Feb 11, 2021
    Nobert likes this.