When first starting out, forex trading can seem rather confusing in addition to carrying high risk. Just do an internet search and you’ll find so many forex systems, plans, strategies, tactics and techniques that it might just start your head spinning.
It’s easy to get side tracked by the latest trading system, forex robot or trading indicator. I think all of us have been there.
At the same time you know that if you could just stick to one thing consistently you might have a much better chance of success. But what is it that causes us to seek new systems, try out new indicators, test new times frames, take yet another course and ultimately delay our trading success?
What keeps us off the path that could lead to success? Most often it’s FEAR and can fear can show up in many forms.
Fear of failure
Trading the forex can put traders under tremendous pressure to make money and be successful. Even though the pressure may be internal, self imposed and simply existing in the mind alone it feels very real.
Or the pressure may be external, coming perhaps from a spouse who challenges us to make good on a promise and make money. At the same time, we may lack confidence either in ourselves or in our system particularly if we have been trading for a while without reaching consistent success.
Getting over fear of failure is pretty simple if you can start viewing everything as a learning experience. Look at life as one big learning opportunity, without mistakes but only experiences and opportunities to do better and better every trade. There are no mistakes but only learning opportunities.
This shift in mindset will help reduce your stress when trading. It will also help you execute and manage your trades with greater precision, controlling your losses and managing your risk.
Yes, you will continue to have losses – that’s just part of trading. However, losses don’t need to outweigh your gains as long as you manage your trades properly.
Fear of success?
Yes, traders also experience fear of success when trading the forex. This phenomenon seems to be a contradiction. After all, don’t we trade because we want to make money?
Fear of success is surprisingly common in a culture like ours, where we are part of families or have friends that distrust or perhaps even dislike successful people. Most of us have been exposed to statements like “money doesn’t grow on trees”, “filthy rich” or “stinking rich”.
Parents may instill the fear of success in their kids without being aware of it. For example, parents may stress that being good or popular is more important than being financially successful. This is easy for children to interpret that it’s better to be good or popular over being financially successful.
Often these beliefs are internalized and once grown up you’re not even conscious of them. But later, as you get closer to achieving financial success, something always seems to go wrong. But why?
Because somewhere deep inside, you believe that if you are successful, you are a bad person and people will dislike you. And we all have a deep desire to be accepted, to belong and to be liked.
That’s just one scenario for the fear of success. If left unchecked, fear of success can wreck your chances of making money from forex trading or from reaching financial success in any other area of your professional life.
The Secret to Success: Master your fears
You can overcome your fears by taking small steps to success. Start by setting small, easily achievable goals that most traders could achieve. Don’t set trading goals that are too high and unrealistic to achieve for where you are right now.
Focus on the process of trading: recognize your setup, execute your entry, manage your trade and finally take your profit or loss. Trade your plan and do it consistently.
Don’t allow yourself to get side tracked by the lasted trading system promising quick profits and huge gains. Trade your plan for at least 20 to 30 times before you tell yourself that there must be a better system out there for you to trade.
While some trading systems are better than others, most decent systems can yield profits if executed properly and traded consistently. It’s the trader and not the system that makes the trade!
If you follow this path your trading success will increase and your account balance is bound to grow. Give yourself permission to be successful, achieve forex trading success by leaving your old fears behind.