The 4 trading fears and how to overcome them

[thecryptogandalf]

Hey guys, I have summarized an article about the 4 main fears and how to overcome those fears. Source to full article:blog.cleo.finance - Source to Tradingview:

We all face those fears as traders and it can cloud our judgment and hinder our success in the market.

Hope you find it useful.

Trading in the financial markets, whether it be forex or cryptocurrency, can be a thrilling yet challenging experience. As traders, we are often faced with fears that can cloud our judgment and hinder our success in the market.

The 4 fears of every traders:

1.Fear of being wrong:

The fear of being wrong is a common obstacle for traders who aim to be right all the time. However, this fear can prevent traders from making bold decisions necessary for success and lead to avoidance of risks, missed opportunities, or impulsive decisions based on emotions. Traders should embrace the possibility of being wrong, use it as an opportunity to learn, and turn it into a strength.

Every misstep is a chance to analyze what went wrong and improve our strategy for the next trade. Embrace the possibility of being wrong and use it as fuel to become a better trader. Remember, even the most successful traders make mistakes and face losses all the time. The key is to learn from those mistakes and come back stronger.

2. Fear of losing money:

The fear of losing money is natural for traders, but it can control their decisions, leading to hesitancy in taking risks, missing opportunities, or premature exit of positions. So instead of letting the fear of losing money paralyze you, turn it into a strength. Use it as motivation to develop a comprehensive trading plan that incorporates effective risk management strategies. Accepting that losses are a natural part of trading, and using them to improve strategies and approach.

3. Fear of leaving money on the table:

The fear of leaving money on the table is a tricky one, as it often arises when we’re in a winning trade. It’s tempting to hold on, hoping to squeeze out even more profits. But this can be a dangerous mindset that can lead to ignoring stop-losses and exposing to unnecessary risk. After all, you don’t have a crystal ball (and aren’t an FOMC member), so you should not expect to buy the exact bottom and sell the exact top.

By having a predetermined exit plan, we can lock in profits, manage risk, and avoid emotional decision-making.

Embrace discipline by having a clear exit strategy that balances the desire for profits with the need for risk management. Trust your strategy and stick to your plan to be in a better position to capitalize on future opportunities.

4. Fear of missing out (FOMO):

The fear of missing out (FOMO) is a feeling that all traders have faced at some point especially prevalent in a volatile market. It can be tempting to jump in without fully analyzing the situation. But succumbing to FOMO can lead to hasty decisions based on emotions, rather than logic, which can result in costly mistakes (emotions causing mistakes…do you see a pattern?).

Traders should resist the temptation of FOMO by sticking to their trading plan, making informed decisions based on logic and analysis, and taking time to thoroughly analyze each opportunity. Trust in your strategy and stick to your plan, even when it feels like the market is passing you by.



How to overcome our fears?

1. Develop a solid trading plan

Having a well-defined trading plan can help manage risks and make informed decisions. The plan should include goals, risk management rules, and entry/exit strategies. Following the plan can ensure discipline and avoid emotional decisions.

2. Practice risk management

By setting clear stop-loss levels and position sizes, we can minimize our losses and protect our capital. This can give us the confidence to take on appropriate levels of risk and pursue potential trading opportunities.

3. Realize that your ego is the enemy

How many times have you held a losing position past your stop loss and literally prayed for the break-even? Did anything fundamentally change about your position? No, you just didn’t want to take the loss, am I right? See, even though we know that losses are part of the process it is still very hard for us to accept that any trade can go against us. And sometimes you do everything right, and still lose.

Every trading system works with probabilities. Losses are normal. Let your ego go and stop trying to force a win out of every single position you take. (Add this to your daily affirmation ritual if you must)

4. Stay focused on the long term

Trading is a long-term game, so focus on long-term goals to stay disciplined. Every losing day can be a step closer to the long-term goal if analysed and learned from.

5. Take regular breaks

Trading can be mentally and emotionally draining, so it's important to take breaks to recharge and refocus. This helps avoid rash decisions.

6. Learn from mistakes

This is the big one. Nobody is perfect, and everyone makes mistakes in their trading careers. Analyze past mistakes and use them as growth opportunities.

7. Automate your trading process:

Leveraging technology in your favor can yield a tremendous difference in your trading results and keeping your emotions out of trading.

Cleo.finance lets you do this with minimal effort. You can set multiple take profits and stop losses, understand your risk-to-reward ratio, the trade’s impact on your portfolio and much more before you even place the trade. You can backtest your strategies, trade them live automatically, and more.

Conclusion

The four main fears that traders face can have a significant impact on our success in the markets. However, with the right approach and mindset, these fears can be overcome and transformed into positive drivers for our trading.

By managing risks, having a clear exit strategy, and avoiding the temptation of FOMO, traders can overcome their fears and become successful. By embracing these fears, traders can make informed decisions, capitalize on opportunities and achieve their trading goals.

[1714663286]

1714663286

[jostorres]

4. Stay focused on the long term

Trading is a long-term game, so focus on long-term goals to stay disciplined. Every losing day can be a step closer to the long-term goal if analysed and learned from.

Well, trading is not only a long term game. You can also be a mid or short term trader, and have different plans and strategies to earn profits and prevent yourself from excessive losses. We all know that we can't always be in profit, but we can plan our trades based on the form of trading we are doing and focusing a bit on the risk management.

If you refer that learning and practice must need enough days then I agree that to be successful in crypto trading that we need to remain patient for longer period of time; this way it can be referred as a long-term game but actual trading process can be short-term like scalping.

[dunfida]

2. Fear of losing money:

This is the main fear of all on which it would really be resulting in fear of being wrong and fear on leaving money on the table.It is all interconnected which is really that needs to be overcome
if you do want to succeed on this kind of career on which facing up volatile prices is never been an easy thing to deal with because the fear of losing money and the fear of taking up
risk on which this had been always the common approach.

[Finestream]

2. Fear of losing money:

This is the main fear of all on which it would really be resulting in fear of being wrong and fear on leaving money on the table.It is all interconnected which is really that needs to be overcome
if you do want to succeed on this kind of career on which facing up volatile prices is never been an easy thing to deal with because the fear of losing money and the fear of taking up
risk on which this had been always the common approach.

If you have the fears on losing your capital, losing your expected profits, then you should not be trading in the first place knowing losing is inevitable in trading regardless if you are a veteran on this field. The fear of losing your money will lead you to be more greedy, and create dumb decisions that will eventually ruin everything you have started in trading. So learn to accept losses, as it’s also a part of the process to make you a successful trader in the future.

[ShowOff]

Anything a trader fears in trading means there is risk involved. Trading is an activity that involves real money and it is only natural for traders to be afraid and to be careful with it. I don't see a big problem with that fear, but at least there has to be a solution to overcome that fear and that is knowledge.

Know how the market works, know what the risks are, know how to do analysis, know when to buy, know when to hold, know when to take profits and know how to control yourself from excuses. All of them are useful and they must be related to each other in order to be a profitable trader.

[Viscore]

Anything a trader fears in trading means there is risk involved. Trading is an activity that involves real money and it is only natural for traders to be afraid and to be careful with it. I don't see a big problem with that fear, but at least there has to be a solution to overcome that fear and that is knowledge.

Know how the market works, know what the risks are, know how to do analysis, know when to buy, know when to hold, know when to take profits and know how to control yourself from excuses. All of them are useful and they must be related to each other in order to be a profitable trader.

Manage your fears, that way you will never be at loss. I believe there are always fears in trading but if you keep on settling with that without even finding ways to overcome it, you will always endure losses everytime you trade. That maybe the reason why most of traders end up quitting because they can never overcome the fears and just keep on trading while losing. But if we always do trading with caution, and continue to learn from our mistakes and losses, then we can overcome fears in the long run and be successful traders instead.

[goaldigger]

Those fears are pretty normal for a beginners, they tend to be more emotional as they are still learning the market trend and with that, expect more losses during those time. You’ll just need to overcome this stage by being consistent on learning how trading works and doing your own strategy to analyze the market.

I don’t know if this is just a kind of promoting a site, though automating your trade is quiet ok but I still suggest to have your own timeline for trading and don’t ever trade if you don’t have time to analyze because trading requires time.

[martyns]

2. Fear of losing money:

This is the main fear of all on which it would really be resulting in fear of being wrong and fear on leaving money on the table.It is all interconnected which is really that needs to be overcome
if you do want to succeed on this kind of career on which facing up volatile prices is never been an easy thing to deal with because the fear of losing money and the fear of taking up
risk on which this had been always the common approach.

You are right mate,fear of loosing money is the main fear that makes people avoid trading,and when this type of fear comes inside you,it tends to limit your financial growth because in life everything involves risk,and it is very risky to be scared of risk and not taking risk,because the risk you avoid to take today will be detrimental to you tomorrow.Therefore,it is better to take the risk and face whatever thing that becomes the outcome,whether you loose or gain.But in risk management,good strategy is the key.

[DoublerHunter]

2. Practice risk management

By setting clear stop-loss levels and position sizes, we can minimize our losses and protect our capital. This can give us the confidence to take on appropriate levels of risk and pursue potential trading opportunities.

^In trading, this is the most important thing that you must handle first because all fears are expected in trading, the possible outcome could happen anytime soon, so the best thing to do is manage them, and managing risk is the best important among them all. From the start, before you decided to be a trader, you know already those fears and those negative results but if you are knowledgeable enough you are confident doing things because you know you are on the right path could those fears may be overcome and avoided.
Nevertheless, if you have these fears and don't have self-confidence, stop trading.

[Smartvirus]

In all that is mentioned or listed above, only one stands out and that is, the fear of loosing money.
You know, if you don't make the profits in the market, it might bother you but, not as much as loosing your money would be. In loosing your money, you develop the zeal to win it back and what you want mots of all is to make profit and no losing so, the concern drives your every thought and moves towards accurate analysis.

The vest way to avoid this is by building confidence in your tasting patterns and that comes from testing the market with several trading strategies until your certified with one to work just okay. Other than that, its just trier and error or more of gambling.

[Sebas.tian]

Many traders are still finding it difficult to remove the attitude of fear of loosing money in their crypto trading, which is leading many traders to continue experiencing losses in their investments. If you can overcome the fear of loosing money, I think you are capable to achieve what you want in the market when the price increase higher. Through your personal research, I think you can overcome fear in the community and it will really help you to know many things in the market which will help you to be stable in profits making in the community.

[Smack That Ace]

2. Fear of losing money:

This is the main fear of all on which it would really be resulting in fear of being wrong and fear on leaving money on the table.It is all interconnected which is really that needs to be overcome
if you do want to succeed on this kind of career on which facing up volatile prices is never been an easy thing to deal with because the fear of losing money and the fear of taking up
risk on which this had been always the common approach.

If you have the fears on losing your capital, losing your expected profits, then you should not be trading in the first place knowing losing is inevitable in trading regardless if you are a veteran on this field. The fear of losing your money will lead you to be more greedy, and create dumb decisions that will eventually ruin everything you have started in trading. So learn to accept losses, as it’s also a part of the process to make you a successful trader in the future.

Although before trading or investing, all of us are aware that loss is inevitable, but once we really participate, no one wants to lose money, even though we have prepared in advance. Honestly, we will never control the fear of losing money, even for top traders, but experienced ones will quickly regain their sanity and find a way to make their money back lost. While the newbies will fall into despair or seek revenge in panic, thereby making the loss even bigger.

[adaseb]

Back when I started trading over a decade ago I read two books. One was called “Reminisience of a stock operator” and the other “trading in the zone”.

The first book was more for entertainment rather than learning trading strategies. It was crazy how stuff 100 years ago still works today.

The second book called “trading in the zone” was amazing because it was about trading psychology. If you read the first chapter you will get hooked and it will explain a lot about the errors we make in trading. It doesn’t teach technical analysis or anything it mostly about how to deal with fear and greed.

[crwth]

Let me add some fear that everyone can relate to.

It's the unpredictability of what could happen when you are trading. It's like a combination of your fears and making sure they are being feared as a collection and not just a single fear. It sums up this, and it's one of the things that you are always going to consider. If you add the concern, it equates to not knowing what will happen in the future, hence the unpredictability and things not going your way.

It's best to protect yourself by risk management all the way. That's the best way always.

[Obari]

This is really a great issue of concern and your article really looks great because you took your time to talk more on these fears but I thought you were summarizing the original topic from the author but your post really looks very long maybe to me.
Traders should also know how to use their stop loss rather then letting bride make them loss money they would have had and I always agree that a good risk management is what actually makes a good trader and not over leveraging.
Traders should know when to pull out of a trade and when to stay in the trade, it is how much money you make and not how long you stay in a trade.

[michellee]

I have noticed that the fear of losing money is one of the things traders always want to avoid and they have experienced it many times but still don't learn from their previous mistakes. When the market price decreases and continues to decrease, they are worried that their money will decrease, making them unable to stand it and sell their coins at a declining price. That makes them suffer losses because they have lost their money. But if they don't sell the coin and keep holding it, they can get their profit back when the market price goes back up and sometimes, it can be several times the price they bought it for. They must be patient, waiting for the price to rise again and not sell their coins in a hurry.

[wxa7115]

2. Fear of losing money:

This is the main fear of all on which it would really be resulting in fear of being wrong and fear on leaving money on the table.It is all interconnected which is really that needs to be overcome
if you do want to succeed on this kind of career on which facing up volatile prices is never been an easy thing to deal with because the fear of losing money and the fear of taking up
risk on which this had been always the common approach.

All of those fears are connected but depending on which one is the most dominant the decisions taken by traders will be affected in different ways.

Those which more than anything fear being wrong will adopt strategies with a high degree of accuracy, this may sound like a good move on their part but the success of a trader is measured with dollars and not with their win rate, and they sacrifice profits as a way to increase their chances to win a trade, and this is a mistaken decision no matter how I look at it.

[cryptoaddictchie]

Fomo is the least I should do among it. Its like being lured in a trap that later on youll convince yourself that you shouldnt rush in something like this. We should learn to be discipline enough to buy only when we see a red on the market and some level hitting up a solid signal to buy and not just swayed by people on socials that it will be the bottom already cause no one really knew that. Its either do a decent dca.

[nidacoinlove]

Fear is natural and in any case you have to face it. Before jumping in a trade it is essential to be prepared for the unsystematic risk, which is always there.
The important thing is time management one should focus on the entry and exit time. Only get into a trade when you see blood in the streets and it will work for you.

[Sterbens]

Fear is natural and in any case you have to face it. Before jumping in a trade it is essential to be prepared for the unsystematic risk, which is always there.
The important thing is time management one should focus on the entry and exit time. Only get into a trade when you see blood in the streets and it will work for you.

Fear is human nature and I agree it is very natural. But don't let that fear overwhelm us, that's actually the real problem. As you said that we must be able to control the fear that we feel. How to overcome our fears, namely by increasing knowledge about trade or investment. The more we have a lot of knowledge about what we are doing, the more we can control our fears. That's what I've experienced so far and made me a better trader or investor.