5 Tips For Forex Beginners To Get Rid Of Their Trading Anxiety

of us deal with while engaging in any kind of task, including trading in the dynamic forex market. The result we expect at the end of a trading session is profit, but it can also be a loss if our calculations go wrong. The thought of losing money will trigger a lot of stress and performance anxiety as we wonder if we will be able to execute our strategy well or fail in the end. The fear of failure is the root cause of trading anxiety, and beginners get easily overwhelmed by this emotion.

But reducing this anxiety is essential to do your best as a forex trader. In this article, you will be reading about the top 5 tips to get rid of trading anxiety and following them will allow you to trade better.  

• Let go of perfectionism 

We often compliment people for being perfectionists or talk about their performance as perfect. We just love to hear such praises from others, and the sense of achievement we feel after doing something with perfection is unmatched. However, perfectionism is one of those personality traits that lead to a high amount of performance anxiety. We want everything to be perfect and might even refrain from doing things just because of the fear of not achieving perfection in the end. This perfectionism can be a barrier in your trading career. Many might think this is not sage advice since having big goals and ambitions is important for building a successful career.

I am not against the idea of being ambitious or dreaming big, but there is only a thin line between being highly ambitious and being unrealistic. You need to keep yourself grounded and don’t expect to do well from the first day. That would only make the trading experience stressful and overwhelming for you due to the burden of expectations. Pulling off a perfect trade all the time is not practically possible, and that does not make you a bad trader. You will surely make mistakes in the trading process and must be prepared to deal with the disappointing results once in a while. In fact, the setbacks will be even more frequent for a complete beginner in the volatile forex market. 

It will surely take time to get closer to perfection, and even the most experienced traders won’t be able to attain perfection in every single trade. You need to do your best to enter trades based on accurate calculations, and tools like trading calculators can automate the calculation process for you by giving instant and precise results. But at the same time, you should not be too hard on yourself because there is no such thing as being a perfect trader, and losses are part of the process to keep it real. You need to keep learning and improving yourself, but at the same time, learn to let things go and try to do better next time. 

• Pay attention to the process, and the results will follow 

The next tip I want to give for getting rid of trading anxiety is to focus on the process first instead of being fixated on the results. When you pay attention to planning and making sound trading decisions, the trading process will be a lot easier; that way, you can also attain the desired results. Many traders tend to chase profits instead of concentrating on their strategy and trading system’s performance.

You won’t be able to bring optimal results until and unless you optimise your trading system and adopt a suitable trading style. When you worry too much about the outcome, you might lose track of your trading purpose, which leads to emotional and impulsive trading or even overtrading. Hence, you must stick to your trading plan until the end and prioritise risk management while taking every step. 

Your trading goals and profit targets will function as your guidelines while placing every order to trade. You need to review your trading activities at the end of each trading session and see if you can perform according to your plan. In short, profits are not the only criteria to measure your performance, and you must evaluate your trading system’s efficiency from a wider perspective. 

• Take it slow while growing your account 

When you are a beginner, you are suggested to start with less risk during the initial phase. This is done by opening a smaller trading account and trading with smaller position sizes. Once you start earning small profits, you will see yourself gaining confidence in your skills and strategy. After this, you can go to the next level, where you will grow your small account into a bigger one by adding more funds and increasing your position size. You might also start availing a higher leverage to amplify your profits, which accelerates the process.

However, many traders tend to rush the process and act without a proper plan. This can lead to costly mistakes, and you might encounter losses and shrink your account size instead. Hence, you should be patient and take things slow. Try to be disciplined and consistent while taking each and every step. You should first devise a solid trading strategy in a demo account before trying anything in live trading. 

Creating and practising trading strategies can take some time, so don’t rush into live trading unless you have full confidence in your strategies. You should not be increasing your risk to 2x or 3x in one go. Increase it a bit at first and see how it works. I will advise you to take your time with it instead of trying to flip your account while taking excess risk. You should never compromise with risk management, as that will never end well for a trader. 

• Reduce your screen time 

Trading is a process which involves extensive use of technology, and hence, we spend a lot of time staring at the screen while trading. But spending a lot of time watching the screen does not increase your chances of success as a trader. You might think it is the right approach to find more trading opportunities and may also fear missing out on an opportunity to trade while you are away from the screen. However, too much screen time will only make you more stressed and burned out in the end. Instead, you can use indicators to find the right trades on your trading platform.

If you use the MT5 trading platform, you will find a huge variety of indicators, so you can use any indicator you are familiar with on this highly advanced trading platform. This will help reduce screen time because you don’t have to keep your eyes glued to the screen to find the right trades. Indicators will do the job for you; you just have to punch the orders. 

Traders who spend a lot of time watching their screens are also more prone to emotional trading and overtrading, leading to a drop in trading performance and a higher possibility of losses. Hence, traders are suggested to take timely breaks and avoid trading once they are tired or unable to concentrate. Staying out of the market will be better than making losses by entering random trades. You should not worry about losing trading opportunities as the currency market will always be there for you to explore, and there is no such thing as running out of opportunities.  

• Find some free time 

The next tip is not related to trading but is about finding some ‘me time’ to spend your energy on other hobbies or things. New traders may find themselves thinking about trading all the time without a break. It is natural to think more about something when you are still in the learning phase, but this can put a lot of pressure on your mind and may also affect your personal life and career if you are a part-time trader. Even full-time traders get exhausted when they constantly think about trading and its results. Hence, I will advise you not to be too attached to trading all the time and to find some hobbies and interests to relieve your stress. You can consider investing in Forex with the help of MAM/PAMM accounts and let expert traders trade on your behalf while you relax your mind and body. Moreover, it is less risky compared to trading on your own.

These days, it is easy to lock yourself in a room and keep doing one thing without a break. But this kind of lifestyle will only end up taking a toll on your physical and mental health. Having a healthy body and sound mind is very important for success in any career and applies to forex trading. So, you need to take breaks and indulge in self-care. This boosts your energy levels, and you will see yourself doing better when you come back to your trading space feeling well-rested and refreshed. 

Conclusion

So, these were the top 5 tips to get rid of trading anxiety. This is not an overnight process but can take some weeks or months to make a habit of staying calm and composed while trading, but you will have to start at one point. So, start today and work on your anxiety issues using the tips mentioned above.