Understanding and Overcoming Fear in Crypto Trade

Being a trader is one of those professions which involve dealing with a lot of fear. Almost all of the traders and investors in any kind of market feel fear at some point of time in their trading journey. This is because all the financial markets, highly volatile Cryptocurrency markets are something that is not in our control.
Some news event can change all the trading plans you had for the day and anything that is not in our control can cause fear of uncertainty. At the same time, it is very important for a trader to understand and overcome that fear in order to trade anything at all. The key to successful & profitable trading is in how we prepare ourselves to handle the fears that are involved in trading.
Most of the investors believe that they know what is going to happen next in the market. This results in traders overthinking about their current trade while ignoring their previous performance in the probability game of trading. As the importance of an individual trade increases in the mind of a trader, the level of fear also increases.
They are directly proportional. This results in traders becoming more cautious in their trading activities and develops self-doubt. The risk of them choking under pressure increases, as they feel the pressure build. Almost all of the traders have fear, but the crux of overcoming fear is in managing it.
Successful traders manage their fear, while the amateur ones are controlled by it. When faced with a potentially dangerous situation there are two choices. You can either face the fear or run away from it. You should know when to do what. In general, there are four types of fears traders generally face. Fear of losing the trade, Fear of ruining profits, Fear of missing out the trend and Fear of self-doubt.
Fear of losing trade is one of the most common fears every trader would have. This fear may occur after incurring a few losses while following your trading strategy. This leads to a lot of bad consequences. Fear of losing will stop you from entering or exiting a trade thereby spoiling your timing strategy.
This fear will stop you from taking action at all in your trading activities. Being in constant fear of losing the trade will never let you trade that way you want to. For instance, if you fear you will actually be able to exit your position when your strategy indicates you to get out, as a self-preservation mechanism, you will also choose not to get into any new trade.
The only way to overcome this fear is to completely understand that losing is inevitable. Many of the successful traders still lose trade after 10 to 20 years of the trading day in and day out. No one can be correct all the time. But the crux of overcoming this fear lies in your ability to minimize the loss and executing your timing strategy perfectly. Remember and understand that good timing strategy is designed to safeguard against big losses.
The fear of losing profits is most common among amateur traders. They take quick profits and let loses go out of control. They lock in a quick profit to guarantee that they feel like a winner. This can be avoided by understanding the trend properly. When you understand the trend, it is easy for you to anticipate what is going to happen next and you will never lock in your profits until the reversal happens.
Fear of missing out the trend begins with greed. Investors pressurizing traders to get them in the trade at any price possible just to follow the hot trend puts a lot of pressure on the trader. In this situation, traders are constantly worried about the trend of leaving the station without their knowledge.
Hence they enter into a position or exit a position in a hurry irrespective of their trading and timing strategy. There is a lot of ignorance on the downside of that trade or the risk factor involved, which is dangerous. The only way to overcome this fear is to trust your strategy and anticipate the trend instead if possible.
Doubting your self is the last thing you should do while you trade. Trading is a game of probabilities where you execute your strategy and expect the odds are going to be in your favor. Self-doubt kills your creativity in planning your strategy. You will always be worried about being wrong thereby focusing on the negatives more than positives.
You should be confident enough on the strategies you made for yourself and execute them irrespective of the result. Forget about the result and execute the strategies that worked for you to overcome this fear of not being right.
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