In fact, I would argue that it is more detrimental than the latter because it is rooted in the subconscious. Everybody says they want to be successful, but some people fear the changes that success may bring.
The idea is not as silly as it sounds if you really think about it.
With success come higher expectations. Take for example an athlete who just ran a mile in under 6 minutes. Chances are that the athlete will set the bar high on his next run and try to surpass his performance.
This builds pressure on him to perform better than the last time. For some people, this is enough to keep them from even trying. The athlete might fear that if he tries again, he would come up short and start thinking that perhaps the first time was a fluke, so he would just rather sit on the sidelines.
These situations aren't rare. After all, most of us grew up being told that we need to give it our all, avoid losing, and always strive to be winners. This pressure to succeed makes trading all the more difficult because even though you give your best, you could never completely avoid losses and you can't win all of your trades.
I guess you can say that the fear of success is rooted in the anxiety of being on the wrong side of a trade. I often hear stories of traders passing on the chance to pull the trigger on a setup they're familiar with because they think their analysis could be wrong. A couple of hours later, they beat themselves up for not taking trades that could've been winners.
So what can we do to overcome the fear of success? Here are three tips:
1) Forget the profits, focus on the process!
The problem with many traders is that they focus way too much on the monetary results of their trading. Once they hit a losing streak, their confidence gets shattered and this negatively affects the way they trade. Sometimes, they result to taking cowboy trades (i.e., "bet the farm type" trades) or refrain from taking setups that they would normally take.
The solution to this is to keep the potential profits (or losses) out of mind and make sure that you follow your trading plans. By doing so, not only will the pressure to perform lighten up, you will learn what can be improved with your trading plan and methods, which improves your chances of long-term success.
2) Keep an open mind
Always keep in mind that market behavior is always changing, which means that you will have to adjust your trading as well.
Do not be afraid to feel like a noob and accept the fact that there will be a lot of instances when the market will prove you wrong. If you stubbornly hold on to your trending style system in a ranging market just to prove your system works, you will be burned badly.
Learn to let go of your need to "always be right." This will relieve you of the pressure of always being successful and will free your mind to focus on what's happening in the markets and adjust accordingly.
3) Set realistic goals
Not only do goals represent your expectations, but they also help close the gap between your aspirations and reality. If you set unrealistic expectations - like winning every single trade, for example - you may be setting yourself up for a ton of disappointment. This could spiral into a negative mental state and affect your decision making abilities.
By setting goals, you can begin to distinguish how far you are away from realizing them. The question is, are you willing to do what it takes to reach those goals? If not, it might be best to readjust your expectations.
At the same time though, don't sell yourself short! The best traders do not think about failure - they set difficult but reachable goals, knowing that this will also serve as motivation for them to keep pushing forward.
In the end, it will all come down to how much you believe in yourself. Successful traders are the ones who set plans and stick to them! They know why they're trading, use this to fuel their motivation, and help themselves rise above all the challenges they may encounter.
Successful traders do not back down from success - they plan for it and embrace it.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
Discover how to make money in forex is easy if you know how the bankers trade!
5 Forex News Events You Need To Know
In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news...
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and...
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.