Nervous when trading Forex; How to deal with it?
The majority of beginner traders will usually feel nervous when they start trading. Although previously simulated through demo accounts provided by forex brokers that have been selected, still the “sensations” that will be felt on real accounts are different. Obviously, because this time real money is involved. If you lose, the loss suffered is not just a minus number in the transaction report. Who will be “hurt” not only “self-esteem”, but also the coffers of money?
Actually, it’s not just beginners who often feel nervous when they make a transaction. There are also many “old traders” who experience the same thing, namely when they will start trading again after being vacuumed for certain things; usually due to loss.
Did you know that all traders have experienced something like that?
The nervousness before the initial transaction is a common and frequent thing. Most of the causes – other than the factors mentioned in the first paragraph – are the lack of experience. But actually, it’s not just that. There are at least some things that cause a beginner trader to feel nervous when starting trading.
This time, I will discuss some things that can cause nervousness when you are about to start forex trading. The hope is, if you already know the cause then you will be able to avoid it.
Don’t have trading skills
Of course. Never mind forex trading, being told to swim to the pool even people will be nervous if he can’t swim.
Don’t have a trading system
Most beginners just try it. Very rarely beginners who have a good trading system. Even if there are, they tend to just “follow” what old traders do.
What is meant by the trading system here is the method of analysis/trading method that matches your character as a trader. Of course, besides matching the character, the trading system must also have “passed the test”.
At the beginning of this article, I have mentioned the demo account. Well, you absolutely must test the trading system that you will use through simulations on the demo account. If the results are good (consistent profit), then there is no reason to doubt the validity of the trading system. But remember that in testing the trading system you must also be objective. Make sure you follow the rules applied by the system. Don’t be violated, because that will reflect what you will do and get in real trading.
Don’t have a trading plan
This is also one of the causes of nervousness. Look, like you will explore the forest, of course, you will feel calmer if you have prepared the necessary supplies. You will not worry too much if you have prepared a map (or even more sophisticated: GPS), food ingredients, first aid kits, communication tools and maybe weapons in case.
In trading too. The “equipment” needed is put into a “backpack” called the trading plan.
Enter in the trading plan the trading system and risk management components. You also have to enter the capital management component ( money management ) which is closely related to risk management.
Desire to be perfect
Perfectionist nature – according to psychologists – it is precisely the cause of anxiety or nervousness. Perfectionist traders tend to always want to be right in every decision they make. He always wants to be able to predict exactly when prices go up or down. What he wants is the price will always rise as soon as he opens a long position and immediately drops when he opens a short position. In essence, he wants every transaction to be made to be fruitful. He is afraid of losing.
Don’t expect to be perfect. In fact, there is nothing perfect in this world, including traders. All you need to do is stay focused and run the trading plan with discipline. Is there not a trading risk in the trading plan that you can tolerate?
Profit and loss are common in trading. The important thing is that your overall transaction accumulation will be positive. no matter big or small.
Tense, not relaxed
In point number 4 it has been explained, that profit and loss is common. So, what needs to be worried about? Have you not been risky from the start in the preparation of trading plans?
One of the things you need to realize is that risk is part of a business, including trading. So, just go back to the trading plan. Take it easy. Believe that if the process you are running is correct, with God’s permission, the results you will get will also be good.
The five points above are not complete, but at least if you can understand these five points you will be able to overcome the nervousness that hit when you start trading forex.