It is obvious to feel anxious when you invest your hard-earned money in the trading market where making a profit is uncertain. Isn’t it? But if this fear interferes with your decision-making ability and makes you impulsive then you need to pause and check it once.
We often see investors being overwhelmed by winning money unexpectedly in one year and shattered when they lose in the next year. It is a common problem for investors to invest more in the trading market once they win money. On the other hand, they miss a valuable stock out of fear after losing money in the stock market.
According to trading psychologists, this extreme emotional swing and anxiety may leave a bad effect on the overall mental health of the performer. So, interested people should check the steps to overcome trading fear along with the tips on how to become a trader before stepping into this world of money-making.
IMPORTANT SIDENOTE: TradeVeda surveyed 5000+ traders (and interviewed 50+ consistently profitable traders) to identify 7 statistically proven steps that will empower you to become a consistently profitable trader. Read article: ‘7 Proven Steps To Profitable Trading’ for an in-depth assessment of data collected through this survey! – This is perhaps the most comprehensive and data backed article on becoming consistently profitable trader that you will find on the internet!
Different Trading Fears That Investors Develop
Trading fear is a common term that most investors experience in different ways while performing in the market. Some investors are afraid of losing their money whereas some are afraid of missing stock. Different thoughts make investors impulsive in several ways. Analyze your trading fear first to overcome it successfully.
Fear of Missing a Stock
Seeing a stock getting a good hike in the market but you have no investment in it may make you repent. This feeling may develop the trading fear of losing another stock and as a result, you may rush to invest in it without working on the prediction. And unexpectedly it gets down in the volatile market. If exactly this is your case then you are developing the trading fear of missing stock.
So, it is always said that don’t break your trading rule impulsively depending on your emotion.
You need to accept the fact that you cant get complete control over the output of the trading market even after gathering years of experience. So, you should not panic about not investing in the particular stock which could earn you the best profit. The trading market is unpredictable and controlling emotion is very important for making the right decision.
Fear of Loss
According to human psychology, being afraid of losing something is not an uncommon feeling but when the feeling gets out of control people may become detrimental. If you can not take the right decision at the right time in trading then it can end up in a financial loss in reality. So, if you always feel like a loss is your predetermined destiny in trading for you and you step back from investing in a profitable trade then consider it as a trading fear of loss.
You need to concentrate on the strategies and strengths instead of thinking about what it would be if you lost money. You can choose an affordable amount of money that is not required to run your day-to-day life.
Fear of Losing Profit
Remember the time when you earned for the first time? It might be a little amount of money but weren’t you protective about it? It is normal to feel protective about the profit you make in your early trading life. If this feeling restricts you from reinvesting the money in the trading market and as a result, you miss the valuable stocks then you need to overcome it. You may also develop a similar fear with the impression of previous losses in the early trading days.
Overcoming this specific trading fear becomes easy if you take the incident of losing money as normal in the early trading days. You should not start buying an expensive stock in the trading market. You can start with small stocks so that the loss or profit amount becomes little as well.
Steps You Can Take For Managing Trading Fear Successfully
So, once you identify the trading fear you are experiencing, implementing the right steps become easy. Trading psychologists highlight the steps that the traders can take to overcome the trading fear successfully.
Think Positive and Get Positive Results
When you imagine something negative and share the thought with someone else, you may hear the phrase “think positive” from that person. Now, you may question, does it really matters in trading or can you really change your mind to think something positive? The answer is always a big Yes! If you can imagine something bad in your future, then you can also create some good images in your mind for the future too. And a positive image can calm down your mind and increase your ability to think logically.
If you create some negative thoughts and develop trading fear, you may feel a rapid heartbeat, sweat, or impulsiveness. These feelings can not only make you emotionally unstable and anxious but also block the response of your logical thought process. In such a situation, you may become unable to take the right steps for saving money in the trading market where time is a vital factor.
On the other hand, one who thinks positively and holds a winning attitude, automatically keeps calm and takes the right step at the right time to win the trade. So, creating a positive thought in your mind of winning the trade increases the chance of making your dream come true in reality as well.
If you have already experienced a large number of financial losses in trading, then the chance of developing trading fear becomes high. It restricts your mind from expecting a profit this time. But you can restrict your mind from creating negative thoughts of similar financial loss this time again and replace those thoughts with some positive imaginations to regain the confidence. You should remember that it may be difficult but not impossible.
Do Your Homework
Do you remember your examination days? How did you use to prepare yourself to appear confidently in the exam hall? The same process you need to apply here. The performance of a trader depends on the preparation he or she takes. You should research well and understand the trading strategies, types of traders, and more to make the right investment.
When you are collecting information about the traders and the trading process, you may have some confusion. You should cross-check the information from the other sources and clear the doubt before progressing further. So, researching well and studying the topic in detail is vital for gathering knowledge and performing consistently. It can also boost your confidence level and helps in ignoring trading fear.
The traders go through the performance of the company and stock in recent years before investing. The stock updates should be checked on a regular basis before making an investment of your hard-earned money. It is not possible to know everything about trading within a few years of performing in the market a few times. But there are some professional training programs available to guide the interested investors in understanding how to become a trader in the competitive market.
Divert Yourself To Learning a New Strategy
The trading market is extremely volatile and can not give you satisfactory results all the time. So, when you are not getting the right outcome against your investment then feeling upset or anxious about the future becomes obvious. But this nervousness can not solve your problem. Right? So, what you can do?
Think of a kid who cries demanding a dangerous thing unknowingly. Do we give it to them to stop them? No, we divert their attention and engage it to some other thing if the kid is unable to understand the logic behind not giving that object to him or her. So, take your mind as a kid. Continuously feeling anxious or upset about trading can leave a negative impact on your mind but you may drown in the feeling unknowingly. So, you need to awake your mind and divert it to some other thing so that you can create some new thoughts to replace the trading fear.
Learning new strategies and tips for successful trading is the best way to upgrade yourself and build up confidence in a poor situation. It is always a good feeling to learn something new about the subject which is a favorite to you.
Take Professional Help From Trading Experts
The professionals are always there to help the novice in any subject and trading is not an exception as well. If you are a new investor in the market, then you can take professional help to understand the facts of the trading market in detail. There are various subjects that you need to understand and implement to become an experienced trader. Once you understand how to become a trader and control emotional states while trading then you become able to develop your own trading strategies. But taking professional help when you are implementing it for the first time can be a good idea.
Moreover, if you understand that you are feeling anxious and you are losing control or becoming restless then you should take professional help so that you don’t take the wrong step. A person with proper knowledge and the ability to predict can always provide you with safeguards to increase the chance of making a profit from the market.
You can go through the educational courses provided by many reputed platforms to increase your knowledge in this subject. The Online Trading Campus is a reliable place where you get the appropriate courses that prepare the investors with proper guidelines.
A feeling of gratitude is always helpful in positive thinking. If a thought of financial loss is making you anxious then pause. You can check your mind and develop a thought of feeling grateful for trading. If you love learning new things then you can show gratitude for giving you scopes of learning new investment strategies. You can also take trading as a beneficial profession for freedom and flexibility in this money-making process.
Why Should You Control Emotions While Trading?
It is a known fact that people should not take any decision when their emotional state is not stable. This is because people can not think logically and predict the future of any action properly when their thought process is in the state of the illusion of losing something.
Understanding Stock Trends
Understanding the stock trends is very important while trading. The analytical and logical mind is the key to the fundamental analysis of the stock successfully. In such cases, the interference of negative feelings, trading fear, or an unstable mind can lead to a wrong result. People need to follow the stock trends in the past few years. So that they make the right decision about investment by selecting the right stock without any trading fear.
Successful trading requires many skills including instant decision-making abilities. The financial commodities may disappear from the order placing list anytime. So, the presence of mind and the ability to take the prompt decisions for making an investment can bring the best result to the investors. The presence of the mind plays a significant role in making prompt decisions successfully for trading. The negative emotional impact on your mind can interfere with the ability of taking prompt decisions.
Flexibility In Performing Trading
The first thing a trader needs to keep in mind for existing in the volatile trading market is that there is no confirmed strategy for winning stock in the market. It is all about prediction and the traders can improve it with time by developing new strategies and changing those with time. The traders need to check the result and again upgrade their trading rules accordingly.
It is clear from the above paragraph that the risk is associated with trading and one who can not control trading fear can not perform well. Keeping your mind calm and control over your emotional state can help you to set new rules for increasing the chances of winning trading.
Boost Your Confidence Level
A trader who is emotionally stable and overcome trading anxiety successfully can invest in the trading market confidently. A detailed education on the subject and at least on a particular strategy can develop confidence in the traders while eliminating the negative emotions from the mind. So, removing anxiety and replacing the negative thoughts with the understanding of the right information is valuable for the traders who want to make money. Moreover, confidence turns the traders into self-dependent investors with proper knowledge and emotional strength.
TradeVeda Recommendations: Top Trading and Investment Resources To Consider
Before concluding this article, I wanted to share few trading and investment resources that TradeVeda has vetted, with the help of 50+ consistently profitable traders, for you. I am confident that you will greatly benefit in your trading journey by considering one or more of these resources.
- Roadmap to Becoming a Consistently Profitable Trader: TradeVeda surveyed 5000+ traders (and interviewed 50+ profitable traders) to create the best step by step trading guide for you. Read article: ‘7 Proven Steps To Profitable Trading’ to learn about TradeVeda’s findings from surveying 5000+ traders, and to learn how these learnings can be leveraged to your advantage.
- Best Broker For Trading Success: TradeVeda reviewed 15+ brokers and discussed their findings with 50+ consistently profitable traders. Post all that assessment, the best all round broker that all collective minds picked was M1 Finance. If you are looking to open a brokerage account, choose M1 Finance. You just cannot go wrong with it! Click Here To Sign Up for M1 Finance Today!
- Best Trading Courses You Can Take For Free (or at extremely low cost): TradeVeda reviewed 30+ trading courses to recommend you the best resource, and found Trading Strategies in Emerging Markets Specialization on Coursera to beat every other course on the market. Plus, if you complete this course within 7 days, it will cost you nothing and will be absolutely free! Click Here To Sign Up Today! (If you don’t find this course valuable, you can cancel anytime within the 7 days trial period and pay nothing.)
- Best Passive Investment Platform For Exponential (Potentially) Returns: By enabling passive investments into a Bitcoin ETF, Acorns gives you the best opportunity to make exponential returns on your passive investments. Plus, Acorns is currently offering a $15 bonus for simply singing up to their platform – so that is one opportunity you don’t want to miss! (assuming you are interested in this platform). Click Here To Get $15 Bonus For Signing Up For Acorns Today! (It will take you less than 5 mins to sign up, and it is totally worth it.)
Any type of anxiety for a long period leaves a negative impact on overall mental health. It may not be easy to eliminate the trading fear completely from your mind magically within a day. It may take time. But it is not impossible to overcome the trading fear and perform well. You can talk to the other investors who have some inspiring stories from their real life. Their experience can boost your thought process.
BEFORE YOU GO: Don’t forget to check out TradeVeda’s latest article – ‘7 Proven Steps To Profitable Trading’. TradeVeda surveyed 5000+ traders (and interviewed 50+ consistently profitable traders) to identify 7 statistically proven steps that will help you become a consistently profitable trader. No matter where you are in your trading journey today, I am confident that you will find this article helpful!
Affiliate Disclosure: We participate in several affiliate programs and may be compensated if you make a purchase using our referral link, at no additional cost to you. You can, however, trust the integrity of our recommendation. Affiliate programs exist even for products that we are not recommending. We only choose to recommend you the products that we actually believe in.