Our emotions influence our behaviour. It can be beneficial to us but it can also lead to bad outcomes. You will experience different kinds of emotions while trading. Today we will talk about the anxiety that often interferes with trading decisions. It may stop you from opening or closing a transaction at the right moment. It can as well appear a bit later after your transaction is closed. So how to manage the anxiety and thanks to this get better results in trading? Let’s discuss this matter.
Fear and anxiety in trading
Traders often struggle with fear and anxiety. To deal with the problem you shall first understand it. This helps a lot in finding the solution.
The most important thing is to understand that emotions are natural and there are no really good or bad emotions. They all serve some purpose. Fear, for example, protects us from danger. It is a natural response when something unknown lies ahead. It is the same in trading. You experience fear when you face the possibility of losing your money.
Dealing with the anxiety
Some try to hide the emotions they feel. This is not the best approach to dealing with them. You will restrain emotions but eventually, they will find the way out and they will be even more powerful than at the beginning.
Experience and competence are the answers to the problem of how to deal with fear and anxiety.
Many things seem difficult when you start doing them. And it is natural you may feel anxious and nervous. After some time, however, you get confidence in what you are doing and you are able to do it with inner tranquillity. Experience is what automatically takes some of the fear away. So practice, practice and practice. If you trade regularly and with consideration, you will feel calm when you start the next session.
Competence is something you can gain through experience. This is your knowledge and understanding of the platform and the market. You are more relaxed when you know well what to do, where is the instrument you want and which indicator to apply. So again, practice, practice, practice. This will bring you much closer to understanding what is going on in the market and this, in turn, will help you make better and more confident trading decisions.
It is completely natural to experience strong emotions when trading. Fear and anxiety appear quite often, and they can lead to poor results. But it does not have to be this way. You can learn to manage the anxiety.
The first thing is to remember that fighting emotions will do no good. Try to understand and accept them instead.
The second important thing is to practice your skills. Training will help you to gain experience and competence, which are the basis for calm trading.
I have some good news at the end. Olymp Trade provides a free demo account for its customers. This account is supplied with virtual cash that can be replenished any time you need it. There, you can test a strategy, check how the indicators work, try different chart timeframes. You can do this all without risking losing your own money. Use it wisely and begin practice there right now!
All the best!
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