fear of losing

[Arafx]

In your opinion, what are some common mistakes traders make when they allow the fear of losing to dominate their decisions?

 

[LCscalp]

I literally struggled with this for a couple years till I learned to control my emotions and become consistent. I and probably everyone else who experienced this will agree that fear of loosing most of the times makes you exit trades too soon or dont react when there is a setup. Being up $100 where my TP was at $500 and being scared of loosing that trade pushed me to exit too early and missing out on A LOT of profits. I 've had some help and now can control my emotions.
TIP to everyone:
Be patient, and stick to your strategy and wait for a setup. Dont trade unless theres a signal to enter or exit

 

[Mazshura]

It is one of the most common aspects of trading psychology. You need to overcome that for your discipline.

One of the biggest mistakes because of the fear of losing is not letting your winners run. Say that you have a position and it is going well, and you are already up by like a 4%. Then it comes down to 2%+, goes back up to 5%+ profit. You liquidate the position just because you fear that it might come down to 1% or 0%. or even turn red. But after you close down the position for a profit, it skyrockets and moves up another 20%+. You basically left money on the table, you were right, but you could not take advantage of it.

That's why you need to stop installing biases into your psychology, every position is a new one and you have to have fresh mental power to deal with every single position indviidually, and not make decision based on collective memory of what happened before.

 

[Arafx]

I literally struggled with this for a couple years till I learned to control my emotions and become consistent. I and probably everyone else who experienced this will agree that fear of loosing most of the times makes you exit trades too soon or dont react when there is a setup. Being up $100 where my TP was at $500 and being scared of loosing that trade pushed me to exit too early and missing out on A LOT of profits. I 've had some help and now can control my emotions.
TIP to everyone:
Be patient, and stick to your strategy and wait for a setup. Dont trade unless theres a signal to enter or exit

Thank you for sharing your trading journey and valuable advice. Controlling emotions and discipline are indeed crucial for success in trading.

 

[Arafx]

It is one of the most common aspects of trading psychology. You need to overcome that for your discipline.

One of the biggest mistakes because of the fear of losing is not letting your winners run. Say that you have a position and it is going well, and you are already up by like a 4%. Then it comes down to 2%+, goes back up to 5%+ profit. You liquidate the position just because you fear that it might come down to 1% or 0%. or even turn red. But after you close down the position for a profit, it skyrockets and moves up another 20%+. You basically left money on the table, you were right, but you could not take advantage of it.

That's why you need to stop installing biases into your psychology, every position is a new one and you have to have fresh mental power to deal with every single position indviidually, and not make decision based on collective memory of what happened before.

Your insight about not letting past experiences cloud your judgment is spot on. Every trade should be evaluated independently based on its own merits.

 

[thomassup]

Oh, well, when traders let the fear of losing call the shots, they basically turn their account into a rollercoaster ride to bankruptcy. It's like trying to drive a car blindfolded – not a great idea!

 

[Nicholasbrownie]

When traders let fear of losing take the wheel, they often make impulsive decisions, like panic selling during a dip or overtrading to recoup losses.

 

[Arafx]

When traders let fear of losing take the wheel, they often make impulsive decisions, like panic selling during a dip or overtrading to recoup losses.

Let's remind ourselves to stay disciplined and not let fear drive our decision-making process.

 

[VasilTodorov]

first i have to say it is natural to have fear, you are trading ur money and you might lose it so you scare.
when you know your feeling is natural you will accept it.
then i have to say based on my experienc you need to avoid it to effect your trades, what should one do? should make his trading system better and better and it will work and help him to put the fear away

 

[Komondar]

Don't be afraid to lose. A good risk-to-reward ratio can lead to a profitable year despite more losses than wins.