10 Things That Traders Are Afraid Of

Fear and greed are the main enemies of the trader. This is known to everyone. The fear of losing money in a deal is understandable, it’s what they always mean when they talk about “fears and greed”, but what about the other fears?

I propose to take a look at the TOP 10 things that traders are afraid of. Even if they are ashamed to admit this.

1 – I Will Never Succeed

Perhaps this is the worst fear. After all, it is based on statistics - 90% of traders lose. However, if you suddenly decide to do classical business, there is about the same statistics - 90% of new companies close in the first year of its existence. Another part - in the next three years.

So what do you do? Do not engage in business or trading, work on Uncle Sam and beg for 10 days of vacation once a year?

In fact, it is important to understand when to quit, if it does not work. From the first time, it will not work out exactly. But, it is difficult to say how much takes the path to success. Many millionaire traders needed a 3, 5, or 8 years of learning and training. I do not want to say that you have to try for 8 years, and if it did not work, drop it at the 9th year. No. I’m only saying that there are no precisely adjusted time intervals when it becomes clear that trading is not for you. Only you can understand this.

Some kind of average value, describing the duration of the path to mastery in any business is still - 10000 hours. 10000 hours of playing the violin, will make you if not a master, then quite a tolerable violinist. 10000 hours of computer setup will make you a good IT master. And, the same with trading. More details about this criterion can be read in the book “Geniuses and Outsiders” by Malcolm Gladwell.

2 - Fear that Forex is a scam

Admit, in spite of all the delirium of such thoughts, when you change your strategy the 500th time, it still seems that there is a lot of fraud, right?

There is a very simple remedy - follow the link

https://alpari.com/en/investor/pamm/ratings

This is the rating of managing PAMM accounts. Which are simple traders who know how to make money, and decided to attract investments to increase profits. In the rating, you can see the profitability, the number of invested funds, etc. It is impossible to forge a PAMM account, because the intermediary-guarantor is the company Alpari itself. So, you see that people earn money, and they manage other people’s investments, taking a small interest for it.

This is not a motivation in the form of photographs with a bundle of money. These are just facts. Non-emotional reality with exact figures.

If you think that this is also a fraud, you can look at the rating of MQL5 signals - https://www.mql5.com/en/signals. This is a rating of signal providers from around the world. You can also become one. The site is managed by the Metaquotes company, which is the developer of commercial software for brokers. So, it makes no sense for them to deceive some John from Springfield to make money on him.

3 - Forex will be closed

Politicians will come to the main office of Forex and close it, yeah 🙂

Closing a decentralized market is quite difficult. And, as long as different countries have different currencies, Forex will continue to exist. If suddenly all countries of the world come to a single agreement and introduce a single currency, then yes, the need to measure exchange rates and exchange will disappear, but it will not happen soon. Even if we look at the future of money - cryptocurrency, we will see that there is not only Bitcoin but also many other crypto-currencies. Which are already actively traded on the market.

Thus, we come to the understanding that if ordinary currencies suddenly disappear, we will trade cryptocurrencies, metals, stocks, whatever. Principles of technical analysis work on any instruments.

4 - I Won’t be able to Repay a Loan

Let’s start with the fact that you cannot take a loan for trading in any case! Whatever the managers of a well-known office with the letter T say to you, you cannot take a loan.

Trading is already complicated, and if you add a pressure of borrowed money, then it will become a nightmare… Although, we must give credit - once I received a letter from a guy who told how he took a credit of 70 000 USD for trading, successfully returned it and has been trading for a year already with his own money… But this is a rare exception, only a confirming rule - no loans.

By the way, taking a loan for a car worth 30 000 USD having a salary of 1500 USD is also not a very clever decision … But, we’re not talking about this now)

5 – My friends and family won’t accept my hobby

“Everyone works at the plant, and you work too!”, “Never been rich, so you shouldn’t try to!”, “Look, Jake and his wife got a fifth child, and you’re fool sitting at your laptop!” - these and other phrases you perhaps hear from your family, friends, parents …

Many even initially do not tell their loved ones about their hobby for trading, being afraid of condemnation. The worst thing that you can tell your spouse is “Honey, I earned $ 200 today.” Do you know why? The woman immediately multiplies $ 200 for 20 working days in a month. And when at the end of the month it turns out that you do not have treasured $4000 in your pocket, she will be sooooooo surprised and call you a fool or worse). Will say that this is not a job, but a scam …

What is the solution? The best option is not to tell anyone about your hobby for trading, always say that you trade on virtual money. Well, when you reach stability, then you can say that. Believe me, if you earn stably good money, you will be respected, even if the source of earnings is betting on cockroach races. Nobody cares, the main thing is the money.

6 – Scared that the strategy/EA will stop working

This fear is well founded and it should not be a fear. Because such a situation is more than possible and may happen. The trader must be flexible and change along with the market. Here an important point is to understand when the idea at the base of the strategy (at the core of the system there should be an idea, always) ceased to work and can distinguish a band of losses from a situation when the very idea of strategy has become obsolete.

This is achieved on the basis of the system’s tests on the history (ie, we make sure that the loss line does not exceed the longest band on history) and the logic - whether the idea on the basis of which you were building your strategy is still valid in the market.

7 - Investors will find me

Funny fear, which stops some people from opening their own PAMM account.

You cannot worry, investors are basically people adequate and understand the risks. The most important thing is to identify them (risks) from the very beginning. If your trade style is conservative with low drawdowns, do not scare people with the probability of a full discharge. Similarly, if you trade aggressively – tell about it. Warn about the danger of a full loss of funds. Honesty is the key to success.

Even more, there are some managers, for example here, that sometimes get a strong overclocking of the deposit, but more blown up. And still, people bring money. Why? Greed and the likelihood of a strong growth. Everyone understands the risks and everyone is happy with everything.

8 - I will stop earning money

This fear affects those who have started to make a stable profit for several months and are afraid that everything can stop, that this is just a streak of luck.

Well, it’s possible that you really got into a favorable period for this strategy, so a little watchfulness will not be exceeded. Confidence in own skills is acquired only after some time. What you now think is unbelievable will turn into a “boring Tuesday” in a year.

9 – I’ll never find a Grail

I’m now going to break your dreams. You better sit down. Ready?

The Holy Grail does not exist.

Yes, exactly. And, whatever the forex courses sellers and signals sellers say, do not believe it. They’re lying. A strategy that gives 100% of profitable trades that takes into account all the nuances and variables of the market does not exist.

There are good strategies with a long-term advantage, there is a competent risk management, there is a psychology of trading. All this together is the “grail.”

10 - I will make money, but not as in dreams!!!

So, you are consistently earning money on the market, perhaps you have a PAMM-account with a bunch of investors. By the end of the month, you often bring out large amounts, which are enough for a comfortable life, trips abroad and some excesses, like expensive cars (even on credit), going to restaurants, etc.

But!

Where are the yachts, private jets, an elite escort with models in the end !!!???

You can sometimes afford tickets in the business class, but probably not a private jet or at least a place in the business jet… You have a decent car, but not the one that has a “girls magnet” … You stay in decent 5-star hotels, but this is not Four Seasons …

I know this pain, I understand your feelings. To reach such heights, you will have to jump above your head. It’s just not enough to trade well enough. There are several options: opening your own investment fund, investing in a business, creating business projects related to trading and much more … But this is a completely different story …

Conclusion

The most effective way to fight fears is to do what you’re afraid of. Remember this and good luck in trading!

What are you afraid of?

Regards, Michael

ForexTraderPortal.com