Are You Afraid of Online CFD Trading? These Tips Will Help You

BY: ON THURSDAY, SEPTEMBER 08, 2016

We all are afraid of things. Some fears have reasonable causes whereas some are completely irrational, like the fear of the sky falling on your head (Gaulish tribes seem to have had that one).

However we should not allow our fears to freeze us in any avenue of our life. Doing so would only isolate us and stop us from enjoying life to the full. So when faced with a fear, try to analyse what you are really afraid of and what you have to do to overcome it.

The same principle is applicable in trading and, specifically in online CFD trading. Let’s talk about two main fears: the fear of losing your money and the fear of losing good trading opportunities. We will see how you can overcome these particular fears.

Fear of Losing Money in Online CFD Trading

Analysing your fear:

If you are afraid of losing money it means that you are not focusing on the profit you could make, but on the losses you could have, and that is not a balanced point of view. It could stop you from executing a trade or from exiting a losing one because don’t want to assume that loss. But, being reluctant to execute an entry in online CFD trading because you are afraid of losing your money can, in fact, have long term consequences.

What you have to do to overcome it:

Accept your losses. As a trader you will have losses, it is just part of the trade. What you have to do is accept this fact. Remember that what is bad is losing all your money, so what you have to concentrate on is on reducing the size of your losses so that you keep increasing your total amount of money despite small losses.

Fear of Losing Opportunities

Analysing your fear:

To an extent, this fear could be classed as greed because what you are afraid of really is that everybody else could have an open position in a progressive trend apart from you.

The situation could be the following: you hear your friends talking about their positions and how well they are doing and then, just because you don’t want to miss out, you jump in without any other indicator than your emotions and without considering the risks involved. That could lead you to uncontrolled losses and that’s something you really don’t want.

What you have to do to overcome it:

To overcome this fear, again you need to think rationally.

Having a tested online CFD trading plan will help you to overcome both fears. Be sure to check out Xtrade.com for professional advice and a better understanding of online CFD trading. If you learn from professionals and develop a tested plan, you will have the courage you need to put that plan into action relegating your fears to second place.

You will calculate the risk and know approximately how much you can lose. At the same time it will protect you from jumping into a trade on impulse because of being afraid of losing the opportunity.

However, overcoming your fears will probably not happen overnight, so be patient and keep working on them.



Image via Shutterstock

About the Author

Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a Major in Marketing. He writes for several sites online such as Tech.co, Semrush.com, Bizcommunity, Socialnomics.net. Boris is the founder of MonetaryLibrary and Dzhingarov.com.

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