Everything has good and bad sides and so do fear. When we talk about fear, it is some of the emotion that we have to experience every day of our lives. The other emotions like crying or laughing are not as powerful as fear as they are not commonly expressed and they are only used at a certain point in time. If you are with your friends you may laugh, if you feel sad you start crying and others like that. The fear is something that is always common in our everyday lives both consciously and subconsciously. It has a great impact on the performance of our works and traders in Forex find fear to be both useful and harmful at the same time. If it sounds confusing, read this article to know the pros and cons of fear in the currency industry. You have the power to control your emotions but if you let it go, it will destroy your confidence.
Those who intend to become a professional trader have a lot to learn. They need to overcome all the fear of losing trades in a row. You might have extensive knowledge about this trading industry yet you will have to lose trade on regular basis. Things are not so easy when it comes to retail trading profession. You have learned the details of the online trading platform and place trade with managed risk. Even a small mistake will cost you a huge amount of money. So be very smart and trade this market with the extreme level of cautions.
Fear stops you from doing stupid things
First, we will start with all the positive things that fear brings into our life. If you make a list of stupid things you have done in the last week, the list will be surprisingly long. People have no end to their stupidities and the only thing that keeps them in sense is their fear. You do not jump in front of a moving transport because you know you can get killed or injure yourself. This is the common sense that is triggered by fear and it is also necessary. When you are fearful about the industry, you will not take silly trades. You will be concerned about using leverage, very much careful in using big position sizes and all these will help you to make your trades better than the last time. If you do not fear the volatilities, you will start trading like novice traders.
It is the essential survival weapon of the traders
From the time immemorial, fear serves the purpose of saving the mankind from destroying themselves. If they did not have to fear the fire, they would have burnt themselves down to ashes. When you are fearful about your money, you automatically take a good decision. You do not rush and give your decision enough time. It saves you from potential losses and makes your way to the successful career.
Fear has bad sides too, stops us from entering into a good trend
Fear also has many bad sides. The first bad side that we want to talk about is stopping the traders from placing trades on a good trend. As they are feared of the market, they start doubting themselves and misses many opportunities. Every trade can be lost but you should not wait for the perfect trend. The perfect trend will never come because it does not exist. Accept the flaws and be brave to place your trades.
Fear triggers unnecessary tensions
These tensions and pressures have a direct effect on our health and in our performance. Our productivity gets lower and we begin to lose our health. We cannot effectively analyze the trends and we place bad trades. It is up to the traders to use the fear in their own way. You should pick out the positivity and use them to your advantage.