Most people do not know to do with their investment. Some will advise you to stay safe and do not place trades. They will focus on trading in demo accounts but at one punt of time in your career, you have to come out and trade in the live market. If you are afraid of your losses, you are not the only one. Many people are scared because they think they are going to lose money. Although losing a small amount in every month is accepted and expected but with fear in mind, the amount can become larger. This article will tell you what to do if you are scared of losing your capital. Before we start giving you advice, we want to say that it is completely natural as your defensive mechanism alerts you to analyze the trend before you place every trend. It becomes a problem when the fear is too big and it starts messing with your mind.
Learn to embrace the loss
Those who trade to win all trades should never trade the market with real money. Trading is nothing but finding the perfect balance between losing and winning trades. If you do some research, you will understand why the majority of the traders are losing money. Finding the perfect trade is easy but the outcome of each trade is completely random. No matter how hard you try, you can never become a successful trader. The novice traders might be thinking they can win all trades but this is a very big misconception.
Try to reprogram your mind so that you can learn from your mistakes. Never take any unnecessary risk even though the expert Singaporean traders have the same opinion about the market. Trade with the low leverage online trading account to save your investment in the long run.
Fear of losses can turn small losses into big
The first problem with your fear is it can turn a small amount into a really big amount. If you lose 1 dollar every week, it is accepted. If you start losing 10 dollars a week, you are going to lose all your investment for a month. The fear should be limited and it should effect on your decisions. If you think only you are making losses, you should look around the industry. Every professional trader also loses capital but with their risks to reward ratio, they manage to stay afloat on the industry with the consistent profit. Respect the trends but do not let the fear take control of your analysis and strategy. Your plan should be designed based on your thought of losing money but should be based on your analysis.
Fear lets trader pass good trades
One problem with fear is it lets the trader pass the good trades. They question their trades and they are too sensitive to trade with the trend. As there are trends always coming and going, they cannot take a decision and good trends are passed. You should be confident and if you lose, it should be based on your own strategy. Never follow any other plan and be confident in your plan. It will not work out always but you know what the mistakes are in your plan. You have the chance to correct and improve the strategy but if you fear the trends, you will miss many wonderful opportunities. The risks should not concern you as the benefits are greater.
You get mad and trade in the spur of moments
As you are afraid and at the same time you want to trade, you begin to have a war with you. You cannot come to a conclusion and you jump into the market to place your trades. It often results from fear when the people cannot take the pressure anymore. Be confident and you can win the trades. Have fear but constrain it within your mind. Do not let it affect your strategy.