Not sure if this has been talked about before, but if so, I'll close this thread.
I bet a lot of traders feel that fear when trading, and honestly, I think it’s totally normal. We're human, after all, and we’ve got our hard-earned cash on the line, right? So yeah, fear is allowed.
What I’ve noticed is that sometimes this fear can actually save you from losing money. Like, if you’re scared to make a move and decide to hold off, it might just turn out that the market would’ve gone against you. In that case, that fear worked in your favor because you avoided making a bad trade.
But then there are those moments when you’re scared to jump in, and later you realize you missed out on a big profit. So that fear? Yeah, it could be a disadvantage too.
I guess fear and waiting can kinda go hand in hand. While you’re feeling that fear of missing out, you’re also waiting, which can either be good or bad for your trades.
How has fear and waiting played into your own trading experiences, both good and bad?
You have talked about it already but what I noticed has been that if I am fearing or afraid to open a position, such trades would have favour if I opened it but I did not open it. Later I may want to open a position for not to lose another opportunity and the market will be against me. I do not fear like before.
Another fear which can come to trader's mind is the fear of losing and the fear of liquidation. They will not have the fear when they have not begin trading but they will have it when they have already opened a position and the market is going against them.
If you feel you are sensitive with news, fud and price volatility, it is time for you to seriously ask yourself that "Are you be able to control your emotion, psychology for trading well?".
If you can not control it, you will failing trading. I am sure with you about your failure, because uncontrolled emotion and psychology are biggest enemies of traders.
Fear, panic, uncertainty appears massively in the market crowd and it relates to Bitcoin price as reflected in this chart of Bitcoin Fear and Greed Index.
https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
Look at the chart and imagine what you feel and what you do if you are in the market with red, fear, panic and uncertainty dominating. Imagine you are in and you actually experience it are different but if even an assumed situation does not look well. Please forget about trading as it is not for you.
Thats one of the reasons on why trading is never been that easy or never been that easy to grasps because at the time or moment that you do find yourself dealing up with unpredictable space then the primary thing that comes up into your mind is to make profit and you have forgotten the very basics of trading. We do know that making profits is one of the advantage or main target or purpose on why peope do trade. Dealing up with an unpredictable market is never been easy because there's really that indeed the fear on making up positions. We are just humans on which there are tons of things that could affect us on the decisions that we are taking specially that moving prices are way too random. There's no way that you can be able to predict on where prices will be going and thats why we will really be hesitating into the actions that we are taking because we arent that sure whether we will be having positive results or not. Fear factor and hesitation which leads up whether on saving up yourself into various situations or you are really that missed out opportunities because you have hesitated because you are on fear on doing such action. You wont be able to have such progress if you wont be doing actions and this is something you should be reconsidering out.
Fear has made me close a trade in other not to incur losses but the trade ends going in my expected direction a few minutes later, that was a disadvantage for me. Fear of liquidation has also made me close a trade which was actually a wise decision made out of fear, because if I had not close the trade, I would have definitely get liquidated.
Expressing fear while trading is not actually good (honestly speaking) and I think while learning how to trade, one should master how to kill that fear because it has a very terrible disadvantage. Just stick to your strategy and your principles and execute your trades fearlessly by applying your stop lose and take profit where necessary and even if the trade hit stop lose, move on and wait for another opportunity.
There's a step am taking currently in my trading journey and if it's successful with time, I will share with the community.
Fear or FOMO has many things to offer you in trading. Most times you see a confirmation for your entry but not too sure, so you avoid taking the trade just to come back only to see that the market moves heavily in your direction. Again like you also said, when you get the courage to place an entry, unfortunately the market moves against you. Fear can either serve you or punish you. So we don't underestimate it while trading. But one thing I've come to learn in my years of trading is that the moment you learn to over come fear and accept your losses, the market work 50% for you most of the time. Fear limits your trading potential and might also save you. Back then I remembered I using very small lot size to take my trades out of fear. When I realized that I wasn't moving at all, I started practicing with bigger lot size and accepted my loss when ever it comes.. that's trading and there's no way to win more than for you overcoming fear.
The fear of a loss can be a greater motivation to review my trading strategies. This type of fear is the positive type. This type of fear is mostly found in the conscientious traders. The type of fear that is a disadvantage is the one that makes you to play it so safe that you doubt yourself. The doubt in your trading abilities will be so strong because of this fear that it would be better that your were a holder than a trader. You only overcome these fears by doing the thing you fear the most in trading.
Well sometimes if you rely on that youd lose some chance to gain too. It happened with me all the time, that I fear to enter this particular trade and suddenly it goes beyond what I am expecting too then I regret for not having enough courage. But it also happened that I bravely ape some coins and If only I got fear to not do it I could save my capital. I think its a loop for both pros and cons.
Fear has no positive impact regardless of the benefits you received from being afraid. As traders we should not be afraid of the market or the market is going to punish you for that. Just that you were lucky to escape the punishment this time does not make fear to be a good thing to be having as a trader. You should not be scared of the market but use every movement it gives you to your advantage to make money from predicting the correct movement of the market. Fear will only make you to lose because you can decide to not exit the market on time or leave your orders active because you are afraid that when you leave the market, the price will continue to increase. We should not make decisions based on emotions when trading, that is a mistake.
Sure it is both pros and cons. Sometimes you are in at the right time and sometimes too you are out at the wrong time vice versa but I have taken a decision not to regret whichever one I follow but what is important is not losing your capital unnecessarily.
They say not trading or being outside and waiting is trading itself because you might be saving yourself some loses while staying outside.
It depends on what you do in comparison with the crowd. If you are fearful like others, or are greedy as same as others, you are part of the crowd that lose money in the market.
If you can do this Be fearful when others are greedy, and be greedy when others are fearful, you will get good trading results and profit in this market.
Bitcoin fear and greed index can help you by rolling back your memory and see what you did in the past, and compare it with what others did as shown in the chart.
I experienced in the last 15 minutes in future trading where I placed a long order and I see the price increase good. But I don't takes too long to close the trade because I can make a nice profit. I don't want to wait for more because I don't think the price will still increase.
The quick of decreasing can happen after reach the high price in this moment so I don't have any reason to still open my long order but close it immediately. I am afraid and worry if I will miss that profit so that is my reason to close my trade. The positive thing here is I can take profit when I see the green candle appear on the market and can close the trade without too long. The negative is when the price still increase, I can not make bigger profit. But that will be okay for me as I can make another profit in the next trade.
Sometimes fear has made me avoid some losses, but it has also caused me to lose some good profit. Trading is risk and traders should be bold enough to overcome fear and take calculated risks. If you have done a comprehensive analysis and you feel that taking a particular position will bring profit, just go ahead and don't let fear stop you. Fearful traders might fail to take risks that will bring huge profits.
It would really be that like a double edge sword because at the moment or time that you do let your fear control you then its neither it will really be having that tendency on for you to avoid some further loses at the same time it could also make you lose up some potential profits. Everything will really be just basing up into the actions that you are taking because at the moment that you wouldnt really be that taking up some decisions whether you do go ahead or not then it will be having that corresponding result or outcome which its neither of those things been mentioned. This is where you can differentiate into those people who are risks takers and to those who arent.
On the moment or time that you do touch up this space then you should have set your mind about taking up the risks. Why? There's no progress of yourself if you do keep on having that kind of mentality at the moment that you do make up some trades. It will be always ideal that you should really be get prepared into those potential outcome into the things that you've been dealing into. If you are not that prepared then you will be getting disappointed at the moment that you do experience loses. This is why its really that important that you should really that know on what you are doing so that you wont get shocked on possible outcomes.
A trader who thinks it is okay for him to accommodate fears is just gambling with his money. There is no such thing as being at an advantage because you were scared of entering some positions or taking certain decisions. Fear will only make you lose lots of opportunities. Yea, opportunities to earn, learn, grow and explore. If you think fear has made you gain something, then that's just luck and not a basic characteristics any trader should possess.
Traders are risks takers. Though fear may set in sometimes, they push such thoughts aside and refuse to let it influence their decisions. Traders who allow fear control them cannot be called good Traders. Traders lose money sometimes, they go through alot that may get them all emotional. A good strategy, experience and good risks management is all they need and not fear. Fear has never been of benefit to me.
Trading is risky but professional traders are not risk takers. They aware about risk of the market and trading in this volatile market, but they are professional with knowledge, experience and necessary skills to control risks and reduce risk effects on their trading positions as most as possible.
They can do it through some best weapons in trading: Stop loss order, Stop limit order.
Stop loss order.
Stop limit order.
What's difference between Stop loss and Stop limit orders.
Fear is a natural thing with every trader and businessman. And nobody should feel ashamed of admitting it publicly. Those who say they do not fear end up destroying themselves. But we know there are levels of fear. The type of fear that make you want to stay away from trading completely is not a healthy one. If you fear to buy because you believe the market will sell, why not sell at once. And if you think it is a buy why not buy instead of staying out and not trading at all.
Fear and greed are feelings that control circulation, and their accessory is usually negative, so one of the most important rules in trading is to remove your emotions from trading. This requires a strategy to circulate and this strategy requires that your emotions be removed.
Fear comes from a lack of knowledge and experience. Once youve fully understood both possibilities, the profit and loss.. you wont feel that fear anymore. This is a game where emotions have no place; its all about logic and strategy. If youre a trader focused on improvement, youve likely developed a strategy. Now, let me ask, did you include emotional factors in that strategy? If not, then let go of that fear.
As you said, it can have both types of impact on our mind it can be positive and negative, not neutral. As if I fear to take trade now in X coin and that coin pumps I will be at a loss and if it is dumped I am at a profit. But we first find out what our fear is, are we afraid of losing money? If yes, then we should not trade with money we don't care to lose, and yeah I know we are human and greedy too we don't have money that we don't care to lose even if we have billions, haha.
But if we have the knowledge, analysis, bullish market etc. on our side and we have a mindset that the trade can be profitable, we must take the risk. I was 500$ in the loss for the last 10 days, and I did not care that much because I knew if the market has taken, then it would give as well.
Recovery from the spot market is easy because you own the token you don't just lose them like future trading and I only pick those coins that are in the market for so long that they have a reputed history. I made loss and profit both, that's what trading means, I took a large trade recently, made some good profit did not book then lost it haha, now making it again, still not booked because I knew the potential before I did not see it going down again, so there is always the fear of making and losing and making idiotic decisions we can't be just perfect instead we can be progressive.