FOREX?? Understanding the Trader’s Fear of Risk, Fear of Loss

Understanding the Trader’s Fear of Risk, Fear of Loss

Fear has the power to become your greatest trading liability if it is not understood. Most people are afraid of risk, not only because they are afraid of failure but more so because they are afraid of loss. Let’s look at what research tells us are the reasons that most traders fail. Successful traders agree that these are the things to justly be feared.
The high rate of failure for beginner forex traders (as well as all other securities, stocks etc.) has been found to be directly due to these six things, in order of significance:
Poor understanding and knowledge Undercapitalization Unrealistic expectations Lack of patience Lack of discipline High risk aversion
As we look over this list, it becomes apparent that fear of failure and loss is the by-product of trading without having in place a proper Forex Trading System – one that includes a high element of mind training and a high quality forex education. The last one on the list, high risk aversion, however, is not pointing not merely to a dysfunctional Trading System, it is talking about the need to understand risk in order to succeed...
Clearly if the fear of loss is coming up for you because you are trading money that you cannot afford to lose, this type of fear is a healthy and sane response. If this is the case then forex trading is not the place for you. The Forex Market is considered a High Risk market. Every responsible forex training and trading site makes that same high risk disclaimer in no uncertain terms. That is why stringent risk management should be factored in every single trade you ever enter. However, it has often been said by successful traders that the Forex Market is one of the risk-management safe trading markets for many reasons, which are covered in the beginning chapters on ‘The Advantages of the Forex Market’.

In referring back to ‘seeking what every successful trader has in common’, I am reminded of Charles Sanford, former Chairman of Bankers Trust, who gave the very insightful speech on how the successful view the fear of risk, excerpts of which I have loosely recalled here. I include this because it also serves as such a good example of ‘reframing’ a conditioned belief, and the benefits of proper mind training.

From an early age, we are all conditioned by our families, our schools, and virtually every other shaping force in our society to avoid risk.

My first observation is that successful people understand that risk, properly conceived, is often highly productive rather than something to avoid. They appreciate that risk is an advantage to be used rather than something to be avoided. Such people understand that taking calculated risks is quite different from being rash. The paradox is that playing it safe is dangerous. Far more often than you would realize, the real risk in life turns out to be the refusal to take a risk. In other words, the truly most threatening dangers usually arise when you shrink from confronting what only appear to be the most threatening dangers. What is widely regarded as playing it safe turns out not to be safe at all. As Heraclitus, the Greek Philosopher said, some 2,500 years ago: Nothing endures but change. Most of us have come to agree with this, but its consequences still deserve some reflection. Obviously, if change is the fundamental rule of life, then resistance is folly -- doomed to defeat.

In other words, in a world of constant change, a world where Heraclitus said you can never step into the same river twice, taking risks is accepting the flow of change and aligning ourselves with it. Remember the paradox: Risk only looks and feels like endangerment. For those who understand reality, risk is actually the safest way to cope.

To take a risk is indeed to step into circumstances you cannot absolutely control. There, again, is the paradox: In a world of constant change, risk is actually a form of safety, because it accepts that world for what it is. Conventional safety is where the danger really lies, because it denies and resists the world. I trust you understand that when I say risk is actually safety, I'm talking about a certain sort of risk. I'm not advising that you leap off tall buildings in the hope that the operation of constant change will reverse the law of gravity in mid-flight. I'm speaking rather of a sort of risk that actually aligns you with the direction of change and that the task then becomes learning how to take risks properly.
Reprints are Available Upon Request.

To be more specific, I believe firmly that the sort of risks that put one in a position to control one's lot in a world of incessant change are the risks that attempt to add something of value to that world. To create value, to focus one's efforts on increasing the fund of that which is worthwhile, involves risk. And yet, paradoxically, it provides you with the greatest control over a changing world and maximizes your chances to achieve a truly meaningful personal satisfaction.
This is a good opportunity to add a piece of ancient wisdom: Do not merely seek to follow in the footsteps of the successful. Seek what they sought.
The Characteristics of a Successful Trader
If we reframe the liabilities listed in trader failure list, we can clearly see that the Characteristics of a Successful Trader are:
• Excellent trading knowledge and understanding
• Adequate capitalization
• Realistic expectations
• Patience
• Discipline
• Understanding and Managing Risk

Six ways to develop your mental muscles

 YOU are the key to having everything you’ve ever dreamed. You have amazing talents and unique gifts to give to the world. No one else can make your special offer. These are the things you can do that no one else is capable of doing quite the way you can do them. We all have a purpose, a reason for living, breathing and existing. The most important thing we can do in life is to understand what that purpose is and how we can use it to benefit humanity. We owe it to the Universe, ourselves, our family, others, the future and your legacy. Become significant – think big and serve big.

Expand your mind a bout what’s possible Our minds determine our success or failure. Your mind is your ultimate strength and weakness. Everything begins and ends with your thinking.


YOU Should to do!!
1. Deciding what you whant to do!!
Deciding what you want to do with your life is relatively easy – keeping a positive mindset and staying
with the plan of action takes discipline.

Develop a mindset focused on abundance and possibility to guarantee prosperity. And create a balanced goal list that motivates you to take massive action to achieve your dreams. Deciding what you want to do
with your life is relatively easy – keeping a positive mindset and staying with the
plan of action takes discipline. Having a strong mind, a positive attitude and a list of
goals will enable you to embrace the power you hold over your own destiny.(Chose it right now..or be   lament)
2. Read, read, read an READ

Read something besides magazines and the daily newspaper. They’re mostly filled with negative images and information that creep into your brain mind continum and fester negatively. Read books that motivate and
inspire you. Do a search of motivational/inspirational authors on Amazon.com or in your local bookstore, or read the 100 recommended books listed on my website, and start

Just a few I’d recommend are:
Brian Tracy, Robert G. Allen,
Dr. Wayne Dyer, Jack
Canfiled and Og Mandino.

These are successful people (who were “mentees” under other amazing thinkers) who have taken all of the scientific and spiritual laws of the Universe and created philosophies and skills by which you can also become
phenomenally successful. (cek this out)

3. Be open to learning all you

can from those who have already done the work. They are here and their purpose in life is to help you discover what your purpose is. Don’t be embarrassed or allow your ego to take control of your
mind. We’re all here to learn. Seek out a mentor and submerge yourself in studying

4. Seek out A mentor
I recommend you get mentors in each area of your life for your entire life. Keep having your mentors
challenge you. Decide on a group of people you admire most, whether you know them personally or not?
From that list, figure out who you’d most like to emulate. Then study them. Research and buy any kind of
information you can find on them. If they offer seminars, attend them. If they’ve written books, read
them. If they’ve got tapes, listen to them. (Authors want me to help them with their books. I won’t until they digest my Mega Book tapes and absorb Chicken Soup for the Writer’s Soul.), The secret (R. Bryne)

list of mentors and seek out their websites. Find out their speaking schedule and attend whatever seminars are closest to where you live. Seeing these teachers face-to-face will help you stay focused on your goals and create a permanent positive mindset. My friend, Doug Wead, the world’s best storyteller says:
“Leaders are born at seminars

5. Attend seminars
To reinforce a positive way of life, sign up for and attend motivational seminars. There you will meet inspirational people (and possible mastermind members) and learn new ways of achieving your goals. You can search out seminars via the internet, newspapers , the Learning Annex, or local colleges and universities. Go back to your Think of unlimited prosperity
– the true reality – and you’ll experience unlimited prosperity – ultimately and inevitably, though not

A World of Job Opportunities

So what kind of work can you expect to be doing as a freelancer?
Well, the possibilities are endless. Traditionally, freelancers have worked in creative fields,
and you will still find many ways to make a great living as a freelance writer, journalist,
editor, designer, programmer or photographer.
But  that is just the tip of the iceberg. Nowadays, freelancers also undertake projects such
as:
• completing opinion surveys
• doing data entry
• helping with admin
• link building for web sites
• posting in forums or on Craig's List
• medical and legal transcription
• prooreading
• answering emails and correspondence
• helping with Internet marketing
...or any of a hundred other tasks.
There are so many things you can do - most of them fun, and all of them profitable.