Have you ever had an entry opportunity come up in front of you, but you are afraid of losing money and losing your capital, so you just can’t enter the market?
In this issue, I would like to share with you some advice for those who are afraid of losing money and not being able to enter even though they know their trading rules have an advantage.
Why do you fear forex entry execution?
Why do we feel such a strong fear when entering a position in Forex?
Let’s look at that first.
In everyday life, people feel little fear, and why
Humans instinctively feel a strong fear of not knowing what the future holds.
But if you think about it, we should feel fear 24 hours a day because we never know what the future holds.
But in real life, we don’t always feel fear, do we?
The reason for this is that people are creatures who can live in peace by subconsciously believing that the same conditions will continue from now on.
The house we live in now will be there tomorrow and the day after, we will be able to get food, and our good friends will continue to be good friends with us… By believing that the same situation will continue forever, we feel secure.
In FX, we are confronted with a “totally unknown future”
However, in Forex, you will never feel the same sense of security as you do in everyday life.
In Forex, you are thrown into the world of “only two movements,” which is very simple and straightforward: the ups and downs of exchange rates.
When you think it is up, it goes down, when you think it is down, it goes up, and you can never predict what will happen in the next moment.
In this harsh world of Forex, where there is no ambiguity and no excuses, you are confronted with the reality that “you can never know the future.
Moreover, when the future of the “world of only two movements, up or down,” decides the fate of your precious money, it is impossible to remain calm.
Therefore, people feel “the fear of not knowing the future at all” intensely.
How do I stop being afraid of forex entry execution?
If you are reading this, you probably have a trading method that has some sort of advantage.
If you do not have one, we recommend that you use the article below to create a trading method.
In addition to making your own, another option is to use the trading method described in the link below.
In the world of FX, “advantageous” means, in other words, “the more you repeat the rule, the more profit you accumulate.
In other words, a trading rule that “repeatedly wins and loses while making a positive total” is a dominant rule.
If you know this in theory, but in reality you feel fear when entering a trade, there are two possible causes.
The first cause is a lack of trust in your trading rules.
The second cause is that you do not properly understand that you will win and lose repeatedly, but that you will make a positive total.
By eliminating these two causes, you may be able to eliminate your fear in entry.
How do I build trust in my trading rules?
Lack of trust in one’s trading rules can be said to be a state of “I don’t really know if this rule has an advantage or not.
In short, there is a lack of validation, so in this case, what you need to do is clear.
In this case, what we need to do is to verify the situation by using past charts, and to make a series of virtual trades (simulated trades) using MT4, ForexTester, etc. Then, we need to verify the situation by using real-time charts.
After that, we will conduct demo trades on a chart that moves in real time to see how the actual trading results will turn out.
In this way, you will naturally build “trust in your trading rules” by realizing that you can win in total, despite everything.
It may sound obvious in words, but the difference between a trader who wins and a trader who keeps losing is how honestly he or she can practice this obvious thing.
Please refer to the article below for more information on trust in trading methods and verification work.
How do you understand “making a positive total while winning and losing?”
How can we understand the concept of “repeatedly winning and losing while making a positive total”?
This can be understood by using the “dice method”.
Please read the following article for a detailed explanation and put it into practice.
The important thing is to continue to act in a way that is profitable in total, that is, to continue to roll the “dice of advantage” under the right circumstances.
Naturally, there will be losing rolls, and you never know whether the dice you are about to roll will turn out to be a losing roll or not.
The fact that a losing roll is a phenomenon included in the superiority of the rules, and the fact that a losing roll is rolled does not in any way shake the superiority of the rules.
Please understand this fact through the “dice game”.
Regret awaits you if you let the fear of entry get the better of you
If you are too afraid to enter a trade because you are afraid of losing the trade in front of you, what awaits you is regret.
It is a typical “Forex trader’s regret” to regret saying that you would have won if you had entered the trade.
“Regret for foregoing entry” and “regret for executing”
So I want you to think about it. Which of the following two situations do you think is better?
- Forego entry and regret “I could have won!” and regret it.
- You enter the market, lose money, and regret “I shouldn’t have done that!” and regret it.
Both of these are bad situations that did not go your way, but if we consider the superiority of trading rules, the answer is clear.
It is the second situation, “I entered the market and ended up losing money.”
The trade was a loss, but if you entered the market according to the superiority rule, then it was already a good trade.
As you can see from the dice game we played earlier, forgoing entry means not rolling the dice, so you are throwing away your own chance to accumulate profit.
If you have “advantage dice,” the right thing to do is to keep rolling them.
How to overcome your fear of entry – Summary
The reason you are afraid to enter the market is…
- The basis for the superiority of your trading rules is unclear, and you do not trust your rules.
- In the first place, you do not have a real understanding of “total win in FX”.
You are not able to understand the reality of “winning in total in FX” in the first place.
Therefore, there is a high possibility that they are in a state where they can only judge their own trades based on the results of their immediate wins and losses.
In this state, you can only see “one loss = less profit,” which makes entry difficult, and in forex, where the future is unknown, you will feel intense fear of “the possibility of loss in front of you.
My advice is as follows
Advice on overcoming the fear of entry
- Build “faith in your trading rules” through chart verification.
- Through the dice game, you will get a proper sense of how to make a positive total while repeatedly winning and losing.
I think it is true, not only in the world of FX, that what appears to be a roundabout way is the shortest way.
The above is how to overcome the fear of losing trading funds and not being able to enter the market. I have told you about the following.
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