The 4 trading fears and how to overcome them

Lanatsa

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Quote from: Falconer on March 06, 2023, 01:18:03 PM

Quote from: Jatiluhung on March 06, 2023, 01:36:47 AM

That is why an experience will be the most valuable lesson rather than just theory.
experiencing defeat in trading as a result of a mistake that we made as a result of too much FOMO or the like, of course we have to make this bitter experience a lesson so we don't repeat the same mistakes.

sometimes we know about things to avoid mistakes like how to overcome fear in trading. but in reality directly applying what we know is not as easy as imagined. sometimes we know FOMO is wrong. but we still can't stop ourselves from doing it.
and only from an experience that will make us more careful.

Theory and practice sometimes don't work in trading, but most of them are also useful although they can go wrong sometimes.
The most important thing about trading is management, including capital management, risk management and behavior management. Having lot of capital does not always guarantee profit, then when traders don't know the risks due to their ignorance it will only be very easy to lose, and without understanding how to set strategies and control emotions also makes traders panic easily.

Everything is intertwined and traders need it. Success sometimes comes after failure, but only if the trader is able to bounce back because of his optimism and desire to learn.

When it comes on learning the basics which is crucial and speaking about those terms and other correlated things which would really be that helpful when it comes to start up and the rest of learning would really

falls down into actual experience and dealing up with the market.It is really just normal that emotions specially fear would really be experienced along the way which it isnt really that shocking to have
with considering that the market is really that unpredictable and there's no way that we could be able to avoid it out.Thing here is that you do really know on how to handle yourself on times like these.
Dont rush up because learning and awareness could really be gained along the way.

Falconer

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Quote from: Jatiluhung on March 06, 2023, 01:36:47 AM

That is why an experience will be the most valuable lesson rather than just theory.
experiencing defeat in trading as a result of a mistake that we made as a result of too much FOMO or the like, of course we have to make this bitter experience a lesson so we don't repeat the same mistakes.

sometimes we know about things to avoid mistakes like how to overcome fear in trading. but in reality directly applying what we know is not as easy as imagined. sometimes we know FOMO is wrong. but we still can't stop ourselves from doing it.
and only from an experience that will make us more careful.

Theory and practice sometimes don't work in trading, but most of them are also useful although they can go wrong sometimes.
The most important thing about trading is management, including capital management, risk management and behavior management. Having lot of capital does not always guarantee profit, then when traders don't know the risks due to their ignorance it will only be very easy to lose, and without understanding how to set strategies and control emotions also makes traders panic easily.

Everything is intertwined and traders need it. Success sometimes comes after failure, but only if the trader is able to bounce back because of his optimism and desire to learn.

justdimin

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Quote from: Jatiluhung on March 06, 2023, 01:36:47 AM

Quote from: alastantiger on March 05, 2023, 06:22:32 AM

Every trader's intention is for profit making. As a trader, the fear of being wrong and doing wrong will cross your mind. But you should understand that being wrong is a way of being right because you will lean from your wrongs and mistakes and do better in your trading. You will never learn if you keep the fear of being wrong in mind. Every mistake comes with its own lesson. When i started trading newly, i was so scared, i wanted to be perfect in my business, i fear mistakes and wrong moves. A friend told me that if i want to do better in my business, i have to accept wrongs and mistakes so i can learn from them and do better. Mistakes helps you grow in every aspect of life most especially in business.

That is why an experience will be the most valuable lesson rather than just theory.
experiencing defeat in trading as a result of a mistake that we made as a result of too much FOMO or the like, of course we have to make this bitter experience a lesson so we don't repeat the same mistakes.

sometimes we know about things to avoid mistakes like how to overcome fear in trading. but in reality directly applying what we know is not as easy as imagined. sometimes we know FOMO is wrong. but we still can't stop ourselves from doing it.
and only from an experience that will make us more careful.

I think experiencing loss is something that could help you grow as a trader and could make more money, but it is also something you need to limit eventually as well. If it has been 3 years since you started trading and you are still not making any profit, then it means you are doing something wrong and that is not acceptable.

The phase where you could be making a loss and you learn from each of them stops after 6 months to a year, lets say 2 years to make sure we include everyone, but after 2 years you are still not even breaking even? That means you are doing something wrong and you need to relearn everything you learned to check what is wrong with your trading.

Bhig Daddy

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These worries are very typical for new traders; they tend to be more emotional because they are still getting to know the market trends and should thus anticipate bigger losses at first. Simply keep working to understand how trading operates and develop your own method of market analysis to get through this stage.
I'm not sure if this is just a way of promoting a website, but automating your trades is perfectly acceptable. Nevertheless, I still advise having your own trading schedule and never trading if you don't have time to analyze because trading takes time.

Jatiluhung

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Quote from: alastantiger on March 05, 2023, 06:22:32 AM

Every trader's intention is for profit making. As a trader, the fear of being wrong and doing wrong will cross your mind. But you should understand that being wrong is a way of being right because you will lean from your wrongs and mistakes and do better in your trading. You will never learn if you keep the fear of being wrong in mind. Every mistake comes with its own lesson. When i started trading newly, i was so scared, i wanted to be perfect in my business, i fear mistakes and wrong moves. A friend told me that if i want to do better in my business, i have to accept wrongs and mistakes so i can learn from them and do better. Mistakes helps you grow in every aspect of life most especially in business.

That is why an experience will be the most valuable lesson rather than just theory.
experiencing defeat in trading as a result of a mistake that we made as a result of too much FOMO or the like, of course we have to make this bitter experience a lesson so we don't repeat the same mistakes.

sometimes we know about things to avoid mistakes like how to overcome fear in trading. but in reality directly applying what we know is not as easy as imagined. sometimes we know FOMO is wrong. but we still can't stop ourselves from doing it.
and only from an experience that will make us more careful.

borovichok

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Quote from: Jody.Drummer on March 04, 2023, 01:46:47 PM

Fear, greed and emotions must be controlled
...

For traders, being familiar with the suggested trading tools is definitely a smart place to start. During my time as a newbie, FUD and FOMO prevented me from securing good positions on the market, but I've since learned to permanently eradicate those qualities from my mind. Although they still occasionally surface, I believe I've reached the stage where we tend to fight our emotions and practice proper risk management in all of our trades. Instead of continually focusing on the money and profits in trades, as has happened in many instances, we should be able to regulate our emotions. We should allow for growth, and now that we have more time, we can focus on what it takes to be a good trader.

jokers10

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Quote from: Jody.Drummer on March 04, 2023, 01:46:47 PM

Fear, greed and emotions must be controlled
...

Obviously, but there's at least one more question: how? We all should live in peace, majority will agree with that, but we don't see any working system on making it real as wars are unfortunately still happening. The same about positive control over emotions: maybe we'll all get wonderful benefits if we could control our emotions but as far as I know nowadays techniques change not one exact emotion we want to control, but our entire emotional character. Changing entirely just for trading... thanks, no! Of course we should control fear and greed, but the question how is still on the table.

alastantiger

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Every trader's intention is for profit making. As a trader, the fear of being wrong and doing wrong will cross your mind. But you should understand that being wrong is a way of being right because you will lean from your wrongs and mistakes and do better in your trading. You will never learn if you keep the fear of being wrong in mind. Every mistake comes with its own lesson. When i started trading newly, i was so scared, i wanted to be perfect in my business, i fear mistakes and wrong moves. A friend told me that if i want to do better in my business, i have to accept wrongs and mistakes so i can learn from them and do better. Mistakes helps you grow in every aspect of life most especially in business.

LUCKMCFLY

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Quote from: Vaculin on February 17, 2023, 02:30:40 PM

Quote from: AicecreaME on February 10, 2023, 09:58:25 AM

Fear of losing money and fear of missing out are the common fears I believe that most of the new traders have.

They want to earn a lot of profits but they don't want to risk their money at the same time, which contradicts everything. While fear of missing out is that they are being jealous to a friend trader who just made a lot of profits in a single trade of a certain coin so he will instantly put his money on that certain coin and expecting to make a lot of profit as well even know he doesn't even know its current situation.

You won’t be profitable in the end if you are unlikely to spend some of your money because you are afraid to lose them all. Of course, you will lose them especially if you trade without good preparation. But if you are a responsible trader and has equipped knowledge and skills to trade, then why fear of losing? However, this FOMO is eventually not a good practice whether it’s trading or investing. Everything should follow a good plan, that’s why you have to set your own timeline and goal before you start to put it into action.

It is very difficult not to be afraid of losing it, because sometimes there are people who get into trading with the intention of multiplying it, and sometimes they gather it with a great sacrifice, and the fact that they can lose it is something that you have to know how to understand. For people who have enough money, it is normal if they lose it because they simply look for more and that's it, sometimes they even do it for mere fun, however, to reduce this fear it is necessary to strengthen yourself by reading books, tutorials , learning more and more, is the easiest way to shield yourself from this, it provides the security to operate and reduces all fear.

Jody.Drummer

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Quote from: tjtonmoy on February 20, 2023, 05:29:23 PM

Not only just fear but greed could do the same to you. You(OP) have pointed out the important facts and ways to deal with it, but when it comes to reality, most people don't think it through. They just let their fear take over their judgements. Emotion control is the first step and without this there's no point learning all the advance knowledge if you are going to make mistake anyway. I have found this article very helpful and hope others will feel the same way. And the newbies should learn from this too.

Fear, greed and emotions must be controlled, because we cannot control one of them, there will not be good continuity. Many beginners start trading with it, and in the end losers come their way. But someone who is now a good trader doesn't mean they don't experience it, they have the same process. I can say that good traders start from a trader who has a bad experience, that's what encourages them to want and try to be able to change their bad experience for the better.

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Quote from: _BlackStar on February 21, 2023, 11:18:06 AM

Quote from: kamvreto on February 20, 2023, 06:36:08 PM

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

However I must admit that what you describe is true. I agree with most of the facts that fear and greed only hurt traders in the long term- especially if they panic. Some of the things above must be avoided by traders in order to minimize losses caused by market behavior. This is an important part for every trader so that what they expect from trading actually fits in the end.

Changes in trader behavior are often caused by high market volatility, so I think it is important to know how to minimize the risk of loss and also know how to have a good psychology as a trader.

you can only avoid the panic behaviour if you are knowledgeable with what is happening with your coins. otherwise, panic is always your enemy here. you will feel such emotion if you have no idea what's going on with your investments. the reason why it is best to keep up with the progress of the coins you are holding. don't believe what you are reading, do your own validation if necessary. most of the time, the media is exaggerating their articles.

milewilda

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Quote from: Altryist on February 21, 2023, 10:44:50 AM

Quote from: kamvreto on February 20, 2023, 06:36:08 PM

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

The case when you sell on a fall and start buying back when the price goes up is a lack of experience, because if a trader repeats this mistake again and again, then it is clear that he will not last long in trading. In trading, you need to be patient and be able to track trend changes, both locally and globally. If a trader makes deliberate trades without haste, then everything will be fine.

Buy high Sell low in short on which this had been the first encounter when im still a noob or even into those mid-times when doing up trading which there are really indeed situations which you would be making yourself on having those fail decisions neither because you might had been fomo'ed which is really that very common.Fear on trading is really that very normal on which you would really be trying to avoid as much as you could
or would hinder you out on making trades just because you dont really like to lose money.If you wont risks then you wont really be gaining something and this is why people should really be that risk taker
if they are really that tending to get some possible potential source of income.

_BlackStar

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Quote from: kamvreto on February 20, 2023, 06:36:08 PM

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

However I must admit that what you describe is true. I agree with most of the facts that fear and greed only hurt traders in the long term- especially if they panic. Some of the things above must be avoided by traders in order to minimize losses caused by market behavior. This is an important part for every trader so that what they expect from trading actually fits in the end.

Changes in trader behavior are often caused by high market volatility, so I think it is important to know how to minimize the risk of loss and also know how to have a good psychology as a trader.

Altryist

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Quote from: kamvreto on February 20, 2023, 06:36:08 PM

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

The case when you sell on a fall and start buying back when the price goes up is a lack of experience, because if a trader repeats this mistake again and again, then it is clear that he will not last long in trading. In trading, you need to be patient and be able to track trend changes, both locally and globally. If a trader makes deliberate trades without haste, then everything will be fine.

Tespata

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Trading for a long time Just faced the loss It always seems as if this time I trade will be successful but every time it reverses i.e. loss What if there is a cap on the amount you can lose Would you still feel fear I don't think so because you previously took the risk and calculated your potential losses. You may manage your fear of losing money by using stop losses in your trades. At last I think I am successful at some point will be identified as a trader

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Quote from: kamvreto on February 20, 2023, 06:36:08 PM

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

The investor that has learned to control the main emotions which move the markets, fear and greed, has a decisive advantage over other investors even if their strategy was as effective as the strategy of other traders.

And this is because just when they need to take a critical decision their thought process is not clouded by those emotions, and it is way more likely they will take the right decision, this is an aspect which is not touched a lot on the books about trading and yet it is one of the most important as it makes a huge difference on the results traders get.

kamvreto

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Quote from: dunfida on February 20, 2023, 05:37:46 PM

Quote from: tjtonmoy on February 20, 2023, 05:29:23 PM

Not only just fear but greed could do the same to you. You(OP) have pointed out the important facts and ways to deal with it, but when it comes to reality, most people don't think it through. They just let their fear take over their judgements. Emotion control is the first step and without this there's no point learning all the advance knowledge if you are going to make mistake anyway. I have found this article very helpful and hope others will feel the same way. And the newbies should learn from this too.

If you do make yourself that wont be able to control between fear and greed then you would really be putting yourself into big problem.We are just humans though which emotions could really play out into yourself which

could cause up mistakes.Overcoming would really be depending on your awareness that you do gain from real experience.Sooner or later you would really be able to realize on how to deal with the market.

Those first impressions you do have on seeing it to be simple would really changed up on the time you do experience losses.You would really be realizing these things for sure.

Greed is a problem for everyone, every human being is equipped with greed at different levels. But if they realize that greed is not good for them when trading, then they will start learning how to manage to be less disruptive in trading. Fear in trading sometimes makes someone too careless to cause some mistakes.
Fear can trigger defensive behavior, which can cause someone to sell a trade when the price drops too far. This can result in unnecessary losses, especially if the asset recovers quickly back to its previous price level. Then, greed can trigger aggressive behavior, which can lead to someone buying an asset at a very high price and then selling it at a loss when the price drops.

dunfida

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Quote from: tjtonmoy on February 20, 2023, 05:29:23 PM

Not only just fear but greed could do the same to you. You(OP) have pointed out the important facts and ways to deal with it, but when it comes to reality, most people don't think it through. They just let their fear take over their judgements. Emotion control is the first step and without this there's no point learning all the advance knowledge if you are going to make mistake anyway. I have found this article very helpful and hope others will feel the same way. And the newbies should learn from this too.

If you do make yourself that wont be able to control between fear and greed then you would really be putting yourself into big problem.We are just humans though which emotions could really play out into yourself which

could cause up mistakes.Overcoming would really be depending on your awareness that you do gain from real experience.Sooner or later you would really be able to realize on how to deal with the market.

Those first impressions you do have on seeing it to be simple would really changed up on the time you do experience losses.You would really be realizing these things for sure.

tjtonmoy

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Not only just fear but greed could do the same to you. You(OP) have pointed out the important facts and ways to deal with it, but when it comes to reality, most people don't think it through. They just let their fear take over their judgements. Emotion control is the first step and without this there's no point learning all the advance knowledge if you are going to make mistake anyway. I have found this article very helpful and hope others will feel the same way. And the newbies should learn from this too.

jokers10

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Quote from: Alisha-k on February 18, 2023, 12:42:16 PM

Be ready and open to risk, I doubt there's any trader who hasn't at one time in their trading journey experienced lose or taken unavoidable risk.

If you must be a trader, please be open to risk, trade with caution no doubt but let your consciousness not not blind you to the point that you avoid risk that may turn out to your favour

Aha, and the main question is where that golden mean when you are already not too panicked about possible risks but still is cautious enough not to lose too much. If it was too easy everyone'd become successful traders, but we know that majority doesn't. So we know that we should find a balance between courage in trading and staying cautious about risks, but we usually don't know how to do that. Grin

Topic: The 4 trading fears and how to overcome them (Read 649 times)