What you learn here should give you the power to eliminate your fear
of losing money in the markets and will help you develop into a confident and emotionally collected trader.
You have concerns and fears
about losing money in the market, and you need someone to help keep you disciplined when everything seems scary or euphoric, and everyone around you is running in one direction.
Most have
rarely lost money in this market and only a few have ever experienced the frustration of being trapped in an illiquid asset like the stock of a private company.
The best offense in trading is a good defense, by this I mean defending yourself from emotional trading mistakes is the easiest way to make money, because trading emotionally is the reason why so many
traders lose money in the markets.
After all, no one wants to
lose money in the market (even though everyone will lose money at some point in their careers if they trade long enough).
The reason you are
losing money in the markets is because your beliefs are not in - line with reality.
Now that you've accepted the reality of why you are
losing money in the markets (you have accepted it right?)
The latter reaped more than twice the returns of the info - deluged group, whose analytical capabilities were hijacked by too much information and wound up buying and selling on every rumor and tip — a surefire way to
lose money in the market.
You will never be able to simulate the emotions associated with gaining and
losing money in the markets, and therefore you won't know how to contain said emotions until you experience them first hand.
So, TL; DR, Many people have
lost money in the market to those who made money from them.
To learn more about the above concepts and to get on the track to conquering your fear of
losing money in the markets, checkout my Forex trading course and members» community.
Understand that the degree to which you have limited or no control over your own behavior and emotion, will be the degree to which
you lose money in the market.
The knee jerk reaction when one
loses money in the market is generally one of two things.
Now that you've accepted the reality of why you are
losing money in the markets (you have accepted it right?)
There really are only two reasons why people
lose money in the markets: over-trading and over-leveraging (risking too much).
The reason you are
losing money in the markets is because your beliefs are not in - line with reality.
So, if
you lose money in the market because you didn't put in the time to really master your trading method by mastering one setup at a time, you have no one to blame but yourself.
To a certain degree it's normal to get a little nervous on your first real - money trade, but in reality, if you are fully prepared for the mental battle of Forex trading, you should have learned before trading with real money that there is clear and present danger of
losing money in the markets.
It's natural to want to gloat about our winning trades to our friends and on online forums, even if overall we have
lost money in the markets... because it makes us feel good when we are right about a trade.
As a matter of fact, an overwhelming 80 % of investment and stock traders end up
losing money in the market.
Finally, one thing that is definitely common to all traders who are
losing money in the markets is that they have unrealistic expectations.
If you find you are
losing money in the markets it is not your broker's fault, nor is it the result of a bad quote, a bad tip, or a hardware failure.
I know it's easy to think this, because I thought it before too, but the truth of the matter is that one of the big reasons people tend to
lose money in the market is because of the whole «out of sight, out of mind» aspect of it.
You are the one who determines whether you make or
lose money in the markets.
«It's why hedge fund investors are «accredited,» that is, they attest to their personal wealth and willingness to
lose money in the markets.
This is how the non-achiever in stock market thinks and
loses money in the market.
They do this by trading as logically and as disciplined as possible, because when
you lose money in the markets you also lose time... and time is the WORST thing you can lose because it can not be replaced.
«However, I've realized that I don't like a lot of volatility and I'd kick myself if
I lost the money in a market crash.
It is also easy to get caught up in «not wanting to
lose money in the market.»