As a trader, we all have different kind and levels of fear and if we want to succeed in trading we have to come out of this fear factor. So the best way to do it is to identify what you are afraid of.
1) Are u afraid of losing money
2) Are u afraid of losing because it will hurt your ego
3) Are u afraid because you are not confident about your strategy
The answer to 1 & 2 is, as a trader you have to accept that losses would occur and even the best of traders lose and it's a probabilities game and the outcome of a single trade doesn't matter in the long run. Once you understand this the next losing trade would be much easier to take.
For example if you are risking 1% of your capital and you are disciplined enough to not widen your stop loss once a trade is triggered just to avoid a loss, you know that maximum you can lose on a single trade is 1% of your capital and it will take 100 consecutive losing trade to wipe out your capital, which is a very unlikely scenario and unless you are a complete crap trader trading with no edge or tested strategy.
The answer to 3 is you have to maintain a trading journal, do back testing and forward testing, take screenshot of your trades before and after the trade to identify your mistakes and make small improvements each day and that will slowly built your confidence in your strategy.
1) Are u afraid of losing money
2) Are u afraid of losing because it will hurt your ego
3) Are u afraid because you are not confident about your strategy
The answer to 1 & 2 is, as a trader you have to accept that losses would occur and even the best of traders lose and it's a probabilities game and the outcome of a single trade doesn't matter in the long run. Once you understand this the next losing trade would be much easier to take.
For example if you are risking 1% of your capital and you are disciplined enough to not widen your stop loss once a trade is triggered just to avoid a loss, you know that maximum you can lose on a single trade is 1% of your capital and it will take 100 consecutive losing trade to wipe out your capital, which is a very unlikely scenario and unless you are a complete crap trader trading with no edge or tested strategy.
The answer to 3 is you have to maintain a trading journal, do back testing and forward testing, take screenshot of your trades before and after the trade to identify your mistakes and make small improvements each day and that will slowly built your confidence in your strategy.
