By Rob Colville on September 20, 2017 in
Are you afraid of trading? It may sound strange, and you may immediately say no, of course not, but think about it. If you’re not trading professionally, if you’re just dabbling, if you’re gambling instead of trading sensibly, you could well be afraid.
Forex trading is a business, and that’s how you need to look at it. It’s no wonder that so many people are afraid of trading when they look at it as a gamble rather than something they can really sink their teeth into and be good at. Gambling is about chance, no matter how well prepared you think you are. Trading Forex professionally is another day at the office, and when you prepare for it, you can do very well indeed. But the profit made from trading is really just the icing on the cake – just as with any job, it should be something you enjoy doing and have a passion for. Otherwise, what’s the point (especially if you are afraid of trading)?
If you’re afraid of trading it’s a good idea to look at why you’re trading in the first place. Is it to make money? And if so, is it to make money quickly? These are not good reasons to be trading, and when you trade solely for the money, any loss will definitely knock your confidence, and make you a little (or a lot) afraid to try again. If you’re trading because you enjoy it, and the money you are using can afford to be lost, then you can be a professional. Otherwise… you’re right to be afraid of trading because you’re just not doing it right.
Well, apart from being someone who is most definitely not afraid of trading, a professional trader – as opposed to a gambler – is someone who understands the markets. They have a clearly defined plan, and they can wait until the right time to trade, even if that means waiting days, or even weeks. They understand that making money is a (great) by-product of trading correctly, but that making money is not the be all and end all – not trading won’t bankrupt them, whereas trading in a rush, or when the circumstances aren’t right, could very well do just that.
Read that again. Risking too much makes people afraid. Break it down. Think about it. This is something that can easily be solved. If you don’t want to be afraid of trading, you don’t need to be. Just risk less, and that fear can be pushed to one side. Gambling – yes, that’s what you’re doing – with a large sum of money is always going to be scary because there is always a chance that you could lose every penny of it. Trading (much better) with smaller amounts is the way to go.
Do not mix these two times up. Although some experts suggest that you should skip the demo account and go straight to live trading because that’s the only way you’ll be able to experience what it really feels like to trade, we say no. That’s not the way to do it at all. Heading straight for the live trades before spending enough time practicing with a demo account is the perfect way to become afraid of trading. Make one mistake, and the money is gone. And you will make mistakes at the beginning, trust us on that. So isn’t it more sensible to make those mistakes when there is no money to lose, so that by the time you’re trading properly, you know where you went wrong and can avoid doing the same thing again? We think so.