GKFX UK Spread Betting v1 728x90

If this has happened to you don't worry, it's happened to most traders at some point but it happens to some a lot more than others. So why can't traders simply put the trading signal into the market and do what they know they should have done? There are various reasons so let's take a look at them.

Confidence

This is a major problem for new traders, they haven't had enough experience of actual trading and tend to want to think about a set up to much and this stops them taking the signal? So why do they lack confidence to take the trade? For many traders, they simply haven't got enough experience and its fear of the unknown but there are other reasons which contribute to lack of confidence.

Your Trading Plan is it Clear and Do You Have Confidence in it?

Many traders have a trading plan but are simply not confident, in its ability to work for them in the market so they hesitate or look for more factors to confirm the trade before they enter it. While they wait, the trade takes off and the opportunity is missed. If you have a trading plan, your signals should be effortless and you should have no problem placing them – if you hesitate, you need to go back to your currency trading education and focus on getting a plan your confident in and the signals are clear and don't have to many inputs so you can simply trade them without to much thinking.

Fear of Losing

Fear of losing is one of the most common reasons traders cannot pull the trigger on trades generated from their trading strategy. In many instances, this comes from lack of confidence and a fear of the unknown which is common amongst new traders. They have made money in a demo account but thats not the same oas doing it for real and they become gripped by doubt and fear their trading method will work.

Fear of trading can also be caused by, trading after a string of losses. After a number of losing trades, you fear losing another one which is natural and this prevents a trader executing the signal. Most successful Forex traders will tell you, it's by taking signals without thinking about them (providing they are in line with your trading rules) which is vital to success because after periods of draw down comes periods of profit - so you need to keep trading in line with your rules. If you skip signals or filter them and ignore your trading rules, you don't have a trading system at all.

Fear is also present if equity has declined to much or there is to much riding on the trade generally. The trader in his head, thinks he has to make money from the trade and the fear of the consequences of a loss are to high which causes hesitation, in terms of transacting the trading signal in the market.

Trading without Hesitation

So how do you overcome fear, hesitation and get the confidence to trade signals and not avoiding pulling the trigger? The first point to keep in mind is losing a trade is part of trading currencies and you should never fear a loss. Most traders will lose at least 50% of their trading signals but to take trades and not fear THESE losses, involves having total confidence in your plan. Work on your plan if you lack confidence and work out why, you are not totally confident in it. To trade with confidence and discipline means, you know the edge your trading system gives you. You know how and why if you apply the rules it will make you money and if you know this, you will always be confident to enter your signals,

Belief in Your Trades and Understanding to Win You Need to Lose

You need to get to a level where you have total belief in what your doing and have total confidence in your trading strategy to lead you to success. Fear comes mostly from lack of knowledge in terms of not accepting in Forex trading you have to follow your plan on every trading signal and losses are normal. The best Forex traders in the world, don't focus on individual trades and don't care, if they lose on a trade. So long as they traded in line with their rules, they know that their plan will hit profitable trades which will cover their losses and give them success in the long term.

Final Words

Trading currency markets is not easy and that's why the profits are so big but you can overcome lack of confidence with education and you can overcome fear, by seeing currency trading for what it really is which is an occupation, where you will lose a large number of trades but to win long term, you need to accept losses short term.

Trading should be effortless in terms of placing trades in the market and you shouldn't even need to think about a set up, it presents itself you trade it. You should simply see all trades in the same way and take the view - they might make money or they might lose but if you have believe in what your doing, you know your going to win long term anyway. The trading signal you didn't pull the trigger on is the one, that saw you break the rules of your trading strategy which will always mean, you end up losing. Trade without fear, with confidence and discipline and you will win. Hopefully this article, will have given you an insight in how to trade your plan correctly, without fear and hesitation and shown you, how achieve long term currency trading success.


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