- The fear of opening trades comes from not knowing how to manage risk properly. This leads to missed opportunities and later regret.
- If you are not using stop loss orders correctly, fear will increase. Without a specific exit strategy, you will fear large losses, which prevents you from entering trades.
- Regret leads to chasing high prices and cutting losses without stop loss orders, which results in larger losses.
- Many say your problem is mental, but fundamentally, these are technical issues, especially in risk management.
- If someone tells you to trade aggressively without proper risk management (for example, without a stop loss), you will find yourself in a significant psychological and financial predicament.
To solve this problem, focus on:
- Learn to manage risk properly, especially using stop loss orders.
- Formulate a trading plan that includes clear entry and exit strategies to resist fear and hesitation.
- Start small and gradually increase the size of trades as confidence and skills grow.
- Regularly review and analyze trades to learn from successes and failures.
If you address these technical aspects, you will build the necessary confidence to overcome fear and improve your performance in the markets.