Although there is no one to threaten on the market, some traders experience fear while trading. Why?
You may have experienced an unknown fear during your trading profession, no matter how long or short it has been. Fear of taking a trade on a reliable setup, and fear of carrying over a strong financial position. But why is this the case? Even though no one is holding a gun at your head while you are at your trading desk, you feel an unknown fear. In today’s article, we’ll look at why we’re terrified of something we don’t grasp and how we might overcome it. Are you all set? Then continue reading…!!
You don’t have a set stop loss in place.
The fear psychology does not emerge instantly. Traders’ anxiety is fueled by their habit of repeatedly entering and exiting losing trades. You can overcome your fear of trading by incorporating discipline into your routine. Now, how do we define trading discipline? When you enter a trade, you should start thinking about your stop losses. Pre-determine a stop loss in your mind before entering any trade. If you could integrate it into your system while making a trade, that would be wonderful. When you consistently trade with defined stop loss and target, you learn to be disciplined. And when you are a disciplined trader, fear of the unknown can’t grip you while trading.
You don’t have a stop loss in existence.
Fear psychology takes time to develop. Traders’ anxiety is fueled by their recurrent involvement in losing trades. By incorporating discipline into your trading routine, you can manage your fear. So, how can we define trading discipline? When you join a trade, you must begin to think about your stop losses. Make a mental stoploss decision before you enter any trade. It’d be fantastic if you could enter it into your system while making a trade. You learn to be disciplined when you routinely trade with a set stoploss and objective. Fear of the unknown never hold you while trading if you are a professional trader.
While trading, have a “accept” point.
If you’re truly terrified of hitting your stop loss and seeing your trade go in the direction of your target, you’ll need to create a new entry point. So, how exactly does this work? So, let’s say you’re long on a volatile product like the Bank Nifty. Bank Nifty and most unstable products, as you may know, have a penchant for feasting on stop losses. Now, if your stop loss is hit and the market is heading the way of your goal, you’ll need a safe point beyond which you can re-enter your trade.
You’re preoccupied with everything except your trading strategy.
Regulators, SEBI Margin Rule, Stoploss Hunting, Freak Trades, Margin Penalties, and other terms like these keep popping up in your head. Now you don’t have to be concerned about any of these issues. These items exist in the market to divert your attention away from your legitimate trading strategy. To be honest, you should only be engaged with your trading strategy. If your company has folks who continually blabbering about SEBI banning retailers from the market, and the operators are always up for banning retailers from the market, you should be alarmed.
Create a plan for your trade and make a plan for your trade.
If you do not plan your trades a day ahead of time, you will undoubtedly experience fear while trading. You must create a trading strategy that you will stick to no matter what. Examine your charts until you have a thorough understanding of every market shift. To gain more insight, you should study your charts on the front of multiple timelines. When you do this, fear will have no place in your subconscious when you trade.
Make your trades both rigid and adaptable. Your trading strategy should be strict in the sense that it should not be influenced by the opinions of others. At the very same time, you should be alert.
Don’t Be Hasty With Your Trades…!!
If you trade several times a day, or even ten to fifteen times a day, you are not trading correctly! Do not make a trade based on every setup you see or hear about!! Instead, you should only engage in trades that are appropriate for your individual setup. This will boost your confidence while punching in the deal, and you’ll have the courage to carry that out.
Technical Analysis and Not News are two types of trades that might be made.
If you trade with the news, you will undoubtedly become a trader who is continuously ruled by their anxieties! Instead, you should abandon news-based trading and concentrate on price action!
For instance, there was news in the market a few days ago that Airtel was offering rights issues at a rate of 535/-. Most retailers were concerned at this point, and some of the more astute wanted to short Airtel with PE. The price action, on the other hand, was telling a completely different story!!
So those are the facts that can assist you in overcoming your fear of trading, and you can become a great trader by memorising all of the above advice. Interested in learning more about how to be a successful trader? Become a mentor with us.