How to begin trading without allowing fear to control you

[348Judah]

If you don't want to be a trader that we condole fear, then always develop more about your competency in trading so that you could be independent on what you stand to deliver for yourself, once this is sorted out, every other thing that comes with trading will only be at the affordability of what we are willing to use for trading purpose, fear easily intimidate when we don't have full confidence on ourself and this is what a trader should force consider before going into trading, to build competence along with self-reliance in what we could achieve from trading.

[Dr.Bitcoin_Strange]

​True a friend of mine was telling me that trading was gambling and I was trying to explain but bro didn't want to listen, so I just kept quiet. People have a choice but they don't often make the right one. That's why you see someone saying I have been trading for 10 years, yet nothing to show forth.Some even give up before that 10 years. That said revenge trading is bad as it will seem more like gambling. Basically when you know you don't have a steady income for trading, you have to often trade with demo as a newbie, and your trade execution has to be very precise as you will need a very good strategy that aligns with your budgets. That's all.

I think it's desperate people that makes trading looks like gambling. Those people that says trading is completely gambling, have they thought to themselves that trading is not only done by retailers but it's an occupation of some big institutions in some countries in the world, we have big banks and companies that are trading with huge amount of money every working day of the week. So, to that person that says trading is same as gambling, why are these big companies not gambling in casinos if really trading was same thing as gambling.

Trading can look like gambling when a trader is trading with emotions and doesn't have any control of their psychology when it comes to trading, it means that such a person will continue to lose money until they fix their emotions. Based on what you said, I think 10 years is really too much for someone to continue losing money in trading and still continue to trade.

[Rruchi man]

If we can do all of this, it will help you reduce fear in trading.

There is a popular saying that if you are going to do it, then do not be afraid, and if you are afraid, then do not do it. I think it applies also to trading because if you're unable to conquer the fear you have in trading, then it should probably be something you should not be doing.

Knowledge and information can help address the issue of fear because most persons are afraid because they have limited knowledge and are more dependent on luck as a way to profit in trading instead of a structure and composure that comes from knowing what you are doing.

With proper knowledge in trading, you would know that there are factors that you can control, and controlling those factors greatly increases your chances of success. With this understanding, fear has been addressed.

[LogitechMouse]

2. Open a Demo account:It’s better to practice trading with fake money first, learn different strategies, and gain confidence before you start using real funds. I can say you should try it for about 2 to 3 weeks, then later switch to real funds. Start with the little money you can afford to use. Don’t let anyone confuse you. Always follow your rules and only put in funds you can afford to lose 100%.

Am I the only one here who thinks that trading using a Demo Account will not make you better? I mean there might be some who could become better when they're using it since it could still help you in learning what strategy will you use that works for you, but there's one thing that using a Demo Account will not teach you. Psychology, and self-control.

Trading using your REAL money will teach you how to become better in controlling your emotions, and we know how could affect a trader based on what their current emotion is. If you're trading using a demo account, you will not learn it because at the back of your head, you will always say "I don't care about the risk at all since this is just paper money." blah blah blah. It will not teach you how to become better in psychology, and it will not teach you anything about risk management at all since the only thing that's on your mind is that it's just paper money.

Demo accounts for me are useless, and I'm a bit bias about it because that's how I see it. Some might see it as helpful, and I get it. It's just that for me, it's not. Using real money will teach you how to be self-aware with your emotions.

[justdimin]

What trips most beginners really need like me when trading, to avoid alot of mistakes.

- Trading with funds you can’t afford to lose makes you fearful as a trader.
- No stop loss, thinking you can get the money you risked back.

Most beginners jump into trading because of FOMO from social media. Just because they don’t want to miss the market.But that plan is different from yours, and at that moment you can enter the market too late, end up losing, and start complaining, and think trading is not for you.

First of all, you are not a beginner, because a beginner cannot have that much knowledge. If you are actually a beginner with that much research and knowledge, that's amazing and I must say that your journey as a trader is going to be beautiful, because these are all very good points you've laid out in your post and almost all of these are knowledge that most newbies need but don't have, which is why I said that you are not a newbie/beginner if you have all that knowledge.

The two points mentioned above that I've quoted are actually pretty on-point, and I say that because I have personally experienced both of these things and I know their value. When you are trading with amounts that you can't afford to lose, you will surely be afraid of losing the trades because you know it is going to end badly, and then also not using stop-loss with those trades either out of ignorance or overconfidence, and that makes things even worse.

If you use stop-loss, there is a possibility that you won't lose as much as you generally would if you are not using stop-loss, but most people don't get it, and then they have to face the consequences but there is no point.

[LastKiss]

1.Trade with your trading budget :We should always try to trade with an amount we can afford to lose without feeling worried about it. Many traders risk money they can’t afford to lose, thinking they can get profit when they use huge amounts. We need to always control ourselves and not trade with emotions, but follow our rules. It’s better that way. Fear won’t occur because we’re doing what’s best for us.

5. Expect to lose sometimes:As a trader, we always need to expect losing because even professionals lose sometimes. What matters is making sure you lose small and win bigger. That is the mindset of a good trader. They don’t give up because losing in trading is natural, but losing a lot is something different.
~snip~

Both of this the most effective approach for me to reduce fear in my mind, my mind is already trained to understand that trading isn't always about winning and I always expect that I could lose then I combine that mindset with good budget management to minimize my losses if my strategy doesn't work out.

Sometimes we're afraid because we don't want to lose money and we're too focused on the results rather than the process. hHving some fear can actually be beneficial because it makes us trade more carefully instead of rushing to open position due to FOMO.

Fear can also save us from making bad trades when we decide not to open a position because the current market situation makes us uncomfortable. It's normal to feel that way but as long as we keep trading we can gradually learn to control our fear.

[Nrcewker]

2. Open a Demo account

I want all new traders to pay more attention to this. A demo account plays a very important role if you are a new trader. It doesn’t just provide you with virtual funds, it also helps you understand the market and test your strategies. With a demo account you have nothing to lose, so you naturally feel more confident. Over time that confidence leads to better trading decisions.

Now regarding OP’s title about fear in trading, it’s completely natural for a trader to feel fear because their hard earned money is at risk. That’s why it’s better to overcome that fear by protecting your capital and gaining experience. It’s similar to driving a car for the first few times. At first you feel nervous, but as you keep driving, the fear gradually disappears.

[Awaklara]

Everyone likes trading, but because of the risk involved it makes others feel discouraged about it. I’ve noticed some don’t look for knowledge first before they start trading. They just focus on profit.

Beginner traders who feel afraid to trade are actually understandable to me. By feeling that way, they tend to act more carefully and thoughtfully. It’s different from beginners who are confident they can easily make a profit from trading. Those kinds of beginners will lose in the long run. Fear isn’t a problem when starting each trade; the important thing is that you do it correctly.

[Obulis]

Everyone likes trading, but because of the risk involved it makes others feel discouraged about it. I’ve noticed some don’t look for knowledge first before they start trading. They just focus on profit.

If people should read this starting elsewhere they will think that you are talking about buying and selling. But then it's not true that everyone likes Bitcoin trading and the influence of trading knowledge is there but trading knowledge is not enough to become successful in Bitcoin trading. The impulse of immediate gain makes trading looks attractive but the risk is more and immediate profit which is a serious drive is one of the major difference between Bitcoin trading and Bitcoin investment.
The generalization that everyone likes Bitcoin trading is an overstatement because many people around Bitcoin doesn't think of trading, just like gambling that has been for ages now, people loves sports but don't gamble. Now that trading is usually likened to gambling, do you expect a lover of sports who doesn't gamble and also a Bitcoiner to trade Bitcoin? Of course big NO!

All the point you made in this post will for sure psychologically help a trader to coordinate themselves even when still affright of the market but is not enough to expunge fear and build serious confidence in newbies to start trading.

[Pandu Geddon]

All the point you made in this post will for sure psychologically help a trader to coordinate themselves even when still affright of the market but is not enough to expunge fear and build serious confidence in newbies to start trading.

Actually, what gets rid of a trader's fear of starting to trade is how strong their interest is. If their interest in trading is high, it will allow the new trader to try and learn more about trading. The more experience they get, the more confident they become in trading. Fear comes when we feel we don't have enough experience in trading. Being afraid to start is a mistake that many people make.

[Queen uloma]

If you don't want to be a trader that we condole fear, then always develop more about your competency in trading so that you could be independent on what you stand to deliver for yourself, once this is sorted out, every other thing that comes with trading will only be at the affordability of what we are willing to use for trading purpose, fear easily intimidate when we don't have full confidence on ourself and this is what a trader should force consider before going into trading, to build competence along with self-reliance in what we could achieve from trading.

You’re right, fear can’t totally disappear from trading because every trade has risk, but that kind of fear that can make a person to panic and make bad decisions can reduce if you build your knowledge and experience.  The more you learn about how to manage risk, market analysis,  and trading psychology, the more confidence you will have in your strategy instead of depending on luck or people’s predictions.

Competence doesn’t necessarily mean that you must win every trade but it simply means that you understand what you’re doing and you can accept losses without  losing your mind.  Successful trading isn’t about removing fear totally. It’s about building full knowledge, confidence and discipline to be able to make a good decisions even when the market didn’t end the way you expected.

[Pandorak]

I always emphasize that in trading, there are several things you must pay attention to and learn:

• Strategy
• Money management
• Trading psychology
• Trading plan

If you already have knowledge about these topics, your trading will be more structured.

1.Trade with your trading budget :We should always try to trade with an amount we can afford to lose without feeling worried about it. Many traders risk money they can’t afford to lose, thinking they can get profit when they use huge amounts. We need to always control ourselves and not trade with emotions, but follow our rules. It’s better that way. Fear won’t occur because we’re doing what’s best for us.

Budgeting, commonly referred to as money management in trading is one of the most crucial aspects, because you must adjust your leverage or lot size to your available capital so that your trading isn’t burdened by losses you can’t afford.

2. Open a Demo account:It’s better to practice trading with fake money first, learn different strategies, and gain confidence before you start using real funds. I can say you should try it for about 2 to 3 weeks, then later switch to real funds. Start with the little money you can afford to use. Don’t let anyone confuse you. Always follow your rules and only put in funds you can afford to lose 100%.

Practice repeated backtesting, this is what a trader should do when just starting out, but most traders focus solely on profits. They immediately deposit real money without considering the risks, and only begin to take learning seriously after they’ve been battered by the market.

[Faisal2202]

Having no rules will end up making you fear any trade that gives you negative PNL because if you have rules that you strictly follow, even if you are afraid, never break your rules, like never stop your trade manually; let it hit your SL or TP and only stick to 1:2RR.

I can't agree more with all of your suggestions, but BitMaxz, I think we should not stick strictly with the rule of "never stop your trade manually, let it hit your SL or TP" because I think it is not a universal rule, it is your rule, a personal one. It is subjective to everyone. If we draw SL or TP and even draw multiple ones to make the most out of our single trade, we still have to close them manually most of the time.

Also, the 1:2 RR has at least three failure points. The 1st is when our win rate is 30%, the second is when we have to make 1 winning trade in every 3 trades, so 1:1 can also be profitable, not just 1:2, but it is based on the strategy which we apply on the chart. Also, I would test the strategy learned from backtesting on demo accounts as well, for a better understanding. Just wanted to share these opinions of mine, what do you think of them?

[Baki202]

If you don't want to be a trader that we condole fear, then always develop more about your competency in trading so that you could be independent on what you stand to deliver for yourself, once this is sorted out, every other thing that comes with trading will only be at the affordability of what we are willing to use for trading purpose, fear easily intimidate when we don't have full confidence on ourself and this is what a trader should force consider before going into trading, to build competence along with self-reliance in what we could achieve from trading.

Some people lack self-confidence because they are always afraid when it comes to making decisions. If you want to become a trader, you must be ready because trading will play with your emotions. This is one of the reasons they advise you to be emotionally ready before you begin trading, because it will even force you to make a decision. And traders enjoy trading because they are used to it already.

But with time, when you continue to trade, you will gain more experience, and so it will get to a point where you won't bother about whatever happens because you already know what it takes to be a trader, because we all know that it comes with a lot of responsibility emotionally and much more. After all, when you don't take things seriously, then that way you will become part of it, and it will become part of you.

[Japinat]

If we can do all of this, it will help you reduce fear in trading.

There is a popular saying that if you are going to do it, then do not be afraid, and if you are afraid, then do not do it. I think it applies also to trading because if you're unable to conquer the fear you have in trading, then it should probably be something you should not be doing.

Knowledge and information can help address the issue of fear because most persons are afraid because they have limited knowledge and are more dependent on luck as a way to profit in trading instead of a structure and composure that comes from knowing what you are doing.

With proper knowledge in trading, you would know that there are factors that you can control, and controlling those factors greatly increases your chances of success. With this understanding, fear has been addressed.

Just because you're fearful then its best not to do it anyway, for me that will only grow the fear inside of you. It's still best if we can find ways on how to conquer and lessen the risk instead, because that is a huge barrier why we fail to succeed. Everyone starts with fear, and eventually grows into motivation and confidence, especially if you expose yourself more into trading.

Knowledge alone is insufficient, you have to develop your trading skills and strategies that will give you confidence to trade in the market. No one is excused from fear, but fear should not hold you back, it should create more reason to step forward and try out the things that will slowly help you to get rid of fear. Its not easy, but its not hard anyway to risk something that you have been fearful of.

[nara1892]

If you don't want to be a trader that we condole fear, then always develop more about your competency in trading so that you could be independent on what you stand to deliver for yourself, once this is sorted out, every other thing that comes with trading will only be at the affordability of what we are willing to use for trading purpose, fear easily intimidate when we don't have full confidence on ourself and this is what a trader should force consider before going into trading, to build competence along with self-reliance in what we could achieve from trading.

I agree, though I would say it is more a matter of cultivating a sense of responsibility or self acceptance regarding risk. After all, a fear of opening a position often stems from a fear of accepting a loss. That said, I also agree that self confidence facilitates the execution process. So, it really comes down to two points the responsibility to accept risk and the confidence to act provided, of course, that you have a valid reason for your decision, rooted in the strategy you are using.

[bitmover]

Having no rules will end up making you fear any trade that gives you negative PNL because if you have rules that you strictly follow, even if you are afraid, never break your rules, like never stop your trade manually; let it hit your SL or TP and only stick to 1:2RR.

I can't agree more with all of your suggestions, but bitmover, I think we should not stick strictly with the rule of "never stop your trade manually, let it hit your SL or TP" because I think it is not a universal rule, it is your rule, a personal one. It is subjective to everyone. If we draw SL or TP and even draw multiple ones to make the most out of our single trade, we still have to close them manually most of the time.

I dont think I talked about stop loss or take profits. I don't trade.

In my strategy, I never use stop loss. If I buy an asset and i think it is an asset that i want in my portfolio, I hold it no matter the price.

If i think the asset is not good anymore I sell it (slowly in batches) to remove from my portfolio.

I am doing that with ethereum

[Jegileman]

If you don't want to be a trader that we condole fear, then always develop more about your competency in trading so that you could be independent on what you stand to deliver for yourself, once this is sorted out, every other thing that comes with trading will only be at the affordability of what we are willing to use for trading purpose, fear easily intimidate when we don't have full confidence on ourself and this is what a trader should force consider before going into trading, to build competence along with self-reliance in what we could achieve from trading.

In trading, the very factor that affects lots of traders is not them not having sufficient knowledge of the market but more about them not trusting their knowledge and applying it in the market, about them not having a string believe in their analysis and also about them allowing their emotions to take over their self confidence in trading. We have so many talented traders out there but they’re not profitable and we have those with average knowledge and already profitable. The gap in this can be seen from their emotional intelligence towards the market. After gaining the trading knowledge, you have to work on that also to be at the top and stand a chance, if you don’t work on that, profitability may take you longer to achieve with the best of knowledge you’ve acquired still.

[Faisal2202]

I dont think I talked about stop loss or take profits. I don't trade.

In my strategy, I never use stop loss. If I buy an asset and i think it is an asset that i want in my portfolio, I hold it no matter the price.

If i think the asset is not good anymore I sell it (slowly in batches) to remove from my portfolio.

I am doing that with ethereum

Brother   haha, I was first thinking what, why are you replying to me, I did not quote you, well it was my own mistake, I meant to write bitmaxz but the first word "bit" hit me haha and I somehow wrote bitmover instead of writing that member's username. I think you also did not noticed that!  

I also do the same, I buy and don't sell until I think it is not the right time, because SL or TP are for day traders where they can't keep track of their trades consistenly when they are not on screens.

[BitMaxz]

Brother   haha, I was first thinking what, why are you replying to me, I did not quote you, well it was my own mistake, I meant to write bitmaxz but the first word "bit" hit me haha and I somehow wrote bitmover instead of writing that member's username. I think you also did not noticed that!  

I also do the same, I buy and don't sell until I think it is not the right time, because SL or TP are for day traders where they can't keep track of their trades consistenly when they are not on screens.

Sometimes you need to talk to him  .

But the whole point of this thread is for future or margin trading since he mentioned SL, TP, and entry. However, you talk about spot trading, where you can hold your coins and do buy only and never sell.

The trading style we will do in the future is totally different when you trade with spot because trading futures and holding the position for too long will wreck you by funding rates.
The holding style you're doing won't work there.