Fear can not be used to avoid loss because there is no point in using fear to avoid loss. If it is possible, it is possible to use fear to avoid loss but fear will make us not confident to open position. If we are not confident to open a position so we will not do anything. it will avoid losses because we do not open positions at all but we can not make a profit as well. So there is no point in doing that and Surely we are afraid to help us to avoid losses in foreign exchange trading. One may not open a thing that will eventually end badly and because fear will not open the trade. fear has helped prevent losses. But I think the effects of fear of trading are more dangerous than losses that will help a trader to avoid.