How to Manage/Overcome Your Investment Fears

We've all had the moment before placing a trade, no matter how being or small, where we pause and think: "Should I do this?". This is completely normal, especially when you are first starting out. No matter how normal one may claim it to be, it's still an uncomfortable feeling when you're taking a risk with your hard earned capital. So let's dive in and learn how to overcome this.

Where the Fears Come From

While the anxiety of trading feels the same, it can stem from different places. Therefore, sit down with yourself and ask why you are afraid to place the trade. Some of the reasons I've personally run into are:

• Not fully educated on the stock

• Fresh off a trading loss

• A lot of capital invested

• Scared to lose

• Gut-feeling of a bad decision

How to Prevent Investment Fears

Your feeling can stem from these or your own pressures in your life. While I can't make your life as a whole easier... emotional investing can be often be dodged by:

• Doing plenty of research on the stock

• Taking time to ground yourself in-between emotion swinging trades or intense financial news

• Not investing more than you are willing to lose

• Trusting your gut!

Trusting your gut is absolutely crucial. Yes it sounds cliche, but if you have a different sort of trading anxiety that you think is telling you to back out of a trade, listen to it.

The Secret That Few Do... Just Start

This may be the scariest part of investing, but obviously the most rewarding. Having to face the reality that you will make a losing trade is rough... Until you do it and find out that life keeps on going! Don't let the fear of potential loss prevent you from (almost) guaranteed gain over time. If you are an independent investor, I would highly recommend taking time in between trading to just live life. Don't let a successful trade make you feel on top of the world, and don't let a loser trade take you to the dumps. Always keep the attitude that this is strictly business, and whether it was a good or bad day, you're ready for the next one.

Emotional trading is almost unavoidable being an investor; and it's near impossible to defeat. That is until I read two books that completely crushed my emotional trading habit and prevented me from making stupid choices when tensions were high. If you're interested in this article coming to your inbox in the future, consider upgrading to Pro plan so you can get access to exclusive content.