Forex $ocial Traders
 

           

How to Get Rid of Fear of Losing in Forex Copy Trading?

fear of losing copy tradingYou are a busy person and do not have any spare time. But you would like to make some money in forex market. What will you do?

Recently you read one article about social trading networks and a possibility to copy well performing traders. Thus you pick one profitable trader and start to copy his trades.

Everything goes well…..but suddenly….

Let me show you two examples on the screenshot below.

 

fearoflosing
Example A:

It is June 16th and you started to copy this trader. Everything goes well, 2 months later you are +14% in profit. You are happy you jumped in this forex copy trading thing. Future looks bright and you already make big plans about spending your future profits.

But wait a moment….here comes one losing trade and another and another losing trade. It is september 18th and all your profits have dissapeared.

Future looks gray now and you fear losing your investment….what will you do?

I can tell you that majority of copiers are upset at this point and withdrawing their money.

Stay tuned…story continues after I describe example 2.

Example B

You started to copy this forex social trader at point B somewhere arounf August 12.  All you see are losing trades and you close your first copy trading month -10% in loss.

What will you do? Will you stay and hope for recovery or will you withdraw your investment in fear of losing everything?

Story Continues…

From my observations and also from my own experiences I know that fear of losing in copy trading can be very paralizing. Your rational mind is blocked and you do wrong decisions based on your fear. But in those moments we should look at the bigger picture.

Therefore, let´s take a look at screenshot #2.

fibo copy trading

This is Myfxbook chart of the same forex  trader (Fibonacci Striker) for this year. This is the bigger picture I was talking about before. Green rectangle shows part of the chart (june 16th – sep 18th) which was used as my screenshot #1 at the beginning of this article.  As you can see, total profit of this trader for this year is 60%. He had couple of drawdowns like that before. Drawdowns are simply part of forex trading game.

I know that it is hard to stay calm during drawdown times, but if you run away everytime there is a drawdown, you will never make any money copy trading other traders.

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