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Old 05-08-2012, 08:40 AM   Nav to Top  #1
asiaforexmentor
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Default Forex Trading Psychology: Levels of FEAR

aForex Trading Psychology: Levels of FEAR

FOREX TRADING PSYCHOLOGY



People can always relate FEAR to forex trading.
The fear of losing money.
The fear of losing that trade which is too much for you to handle.
However what most people do not realise is that there are different levels of fear.
Eg.
When you can afford to lose that trade, (which you still do feel fear)
you are still able to think rationally and life goes on.
(ALTHOUGH YOU STILL DO NOT WANT TO LOSE THAT TRADE)
In the example above, fear is definitely in our emotions.
But because the level of fear is low, we are able to handle the fear and still think rationally.
HOWEVER,
Eg. your forex trading capital is $10k.
Your current open trade is now losing -$5000.
And that’s half of your capital.
Or worst to say, that’s half of your life asset. (Money you can’t afford to lose)
Forex Trading Psychology – Fear kicks in. (This time in higher dosage)
Then you start seeing your open trade grows to negative -$6000.
Your Fear level increases, you can feel your heart beat racing.
And sure enough, your worst fear arrived,
The trade increases to negative -$7000.
Forex Trading Psychology: Levels of FEAR

Your level of fear had reached its final peak level.
(you know it when you feel):
- Desperation
- Your face turn black
- You isolate yourself
- You start blaming people, things, events
- You pray
When you feel this level of highest fear.
You can’t think rationally any more.
You know that you can’t think rationally any more when:
- You have decided to increase lot size on your next trade
- OR You decided to go ALL IN on the next trade
You want to get revenge on the market.
You now feel HATE and ANGER.
Forex Trading Psychology: Levels of FEAR

And sure enough, when you start to do things irrationally.
That is the downfall of your trading career.
So you see, there are different levels of fear.
And the highest fear can lead to other emotions like ANGER & HATE.
When you start to do all the above.
You know you have reached your highest level of fear.
It is time to stop trading for a while.
Go get a rest, a shower, a walk.
When you feel that you have calm down and begin to accept things.
I want you to think of what went wrong. (not to blame others)
but what mistake did you made in the trade.
Good chance is that you are risking too much.
And i want you to WAIT and NOT trade until your feeling of hatred, anger and revenge is gone.
That is when you are able to think rationally and go back to fix the problem.
Remember, forex is a journey and not a one time success.
Most traders want to make big bucks in a few trade. But eventually lose it all.
Professional full time traders are ones who trade consistently and happy with reasonable profits.
Let me know if you had experience the above before and what you did, or what happen?

Ezekiel Chew
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Old 11-12-2012, 10:44 AM   Nav to Top  #2
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Hi,
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A complete professional forex trading system that even newbies can apply instantly.
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Old 11-15-2012, 07:11 AM   Nav to Top  #3
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The rupee fell for a second session on Friday, as the euro gave up its early gains and local stocks fell after the country’s largest lender reported earnings below expectations. India’s main stock index ended 0.86 percent lower. The rupee fell for a second straight week, marking its fourth week of decline in five, highlighting its vulnerability to global uncertainties after the euphoria over economic reforms ebbed. The rupee is likely to weaken further on global dollar strength. Sentiments on the Indian rupee has turned bearish once again after some signs of optimism in the last two months, a Reuters poll of currency strategists showed.
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Old 01-12-2013, 07:03 AM   Nav to Top  #4
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I like your website asia forex mentor
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Old 02-02-2013, 11:52 PM   Nav to Top  #5
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Your website asia forex mentor is my favorite now!keep develop it!
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Old 08-30-2019, 09:16 PM   Nav to Top  #6
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Fear is always present when we talk about investment which is what makes it such a major challenge but I believe we can really handle this right if we are sensible with our approach. I am always sensible and it helps me a lot with FreshForex broker who are great support whether in terms of security or with the amazing features that they have.
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