Wednesday, August 12, 2009

FOREX Tips: Dealing With Trading Anxiety


forex-anxiety

Trading anxiety can be a problem for forex traders that have suffered from serious losses. Anxiety can cause a loss of confidence, fear of mistakes, and take away your ability to be objective.

If you find yourself feeling sick and upset over your forex trading account, it’s likely that your risk management is not tight enough. To overcome this, you have to make a plan. Sit down and outline what you think you did that put you in the position that you are in. Once you have identified the mistake, make a trading plan to correct the mistake and make a note of how you will avoid this happening again in the future.

Forgive Yourself

No one is perfect, every forex traders makes mistakes. The most important thing is that you learn from them. There are no perfect traders out there. Even professional traders take a heavy loss from time to time.

Unplug yourself

After a major loss, it’s important that you take some time off. Avoid the need to immediately jump back in to “win” your profits back. It is better to come back after you feel well rested, calm , and clear headed. In forex trading, beating your emotions is the most difficult thing. If you are smart and recognize that you are being emotional, you can avoid compounding your mistake.

Keep a Forex Journal

One way to learn from your mistakes and to keep your anxiety down is to keep a forex journal. Use the journal to write down the trades you make and why you made them. After the trade is closed write down the result and any mistakes that you made if any. If you end up in a position where you feel like your account is losing too much and it’s making you anxious, review your forex journal. Look for any pattern of mistakes.

Forex is a Journey

Learning to trade the forex market is a journey. Trading anxiety can ruin you if you don’t handle it properly. Keep in mind that there is always another trading day. If theforex markets ever feel like they are too much, just turn off your monitors and come back tomorrow. They will still be there. The life you save could be your own.

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