Fear and Binary Options Trading

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

How to Control Fear of Trading Binary Options

Was it not Franklin D. Roosevelt who said the only thing to fear is fear itself? The same is the case with binary options trading. There are plenty of traders who do just fine with the demo accounts that trading platforms provide but get the jitters when they get to the real money business. This fear can range to some nervousness to extreme fear that becomes a problem to the trader. When it becomes a problem, the trader cannot trade well and may get into a losing streak for lack of focus, or he may abandon binary options altogether which is of course a tragedy as he will be losing out on a good thing.

To trade profitably with the binary options, one thing you should always have with you is caution. Caution will prevent you from making rash decisions. This should never be confused with fear. Fear will interfere with your thinking process and mess up everything. It is therefore important to learn how to confront the fear and keep it away from you when you are making your binary options trades. Here are some practical ideas to help you control it.

Have complete confidence in your trading system

If you lack a considerable degree of confidence in your trading system, you will have some fear at the back of your mind or a lot of fear. This will negatively affect your trading decisions especially where you try to second guess the provided signals. You will want to believe that you can do better and then proceed to make changes to that effect. The important thing is do not trade with a platform that you cannot have complete confidence in. When the urge to second guess the signals comes, it is prudent to remember that the same system has provided signals that made you profits from winning trades. The system has probably not changed a bit and you could be back to winning ways in no time. Most times, the signals are good and your second guessing is just that; a guess… and that is the last thing you want to be doing when trading with binary options. This is because a lot of though and resources have been set up behind the scenes to generate that signal that probably seems irrational to you. Collate some historical data on your trading system and if it is making you some money, probably not as much as you would like, give it about two months before you dismiss it completely. You never know what you could be losing out on.

How Binary Option Robot Can Change Your Life? Check This Out!

7 Binary Options

The majority of new traders who want to trade with binary options who used demo account and switched to real account with the binary options broker that they have selected are facing certain problem while they were trading with a demo account. That problem is actually the fear that appears when traders actually start to trade with real funds. Over time, that fear grows stronger and stronger and that can potentially get out of control if it is not treated. In the situation where fear controls the trader’s actions, there is no chance for traders to earn money in the binary options trading market and they would end up only losing their money.

Everybody understands that fear is really big and important factor in everything that we do and trading binary options is no different. However, the question remains how to reduce the effects and the fear itself. For many traders, traditional advice that includes recommendations like ”stay calm”, ”follow your trading plan” are all very good pieces of advice. However, the biggest problem occurs when it is time to implement those pieces of advice. However, in order for these pieces of advice to actually work, only saying them is not enough. What the trader in that situation actually needs are the specific instructions on how to achieve that.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Be in Control of Your Emotions

Controlling your emotions is recommended in almost all lines of business and trading binary options is not exception as well. When it comes to the binary options trading, what a trader might do before he or she starts to trade is to write down on a piece of paper a word or two about their emotional state in that moment. Let’s take, for example, that you are tired and that you feel sleepy. In that emotional state, the type of binary option trade will not be the same as the binary option trade when a trader is feeling relaxed and excited.

Once you put those emotions on paper you will be able to realize that emotions actually play very important role in how successful your trading will be. For some other group of traders, irritation, anger and other negative emotions can also have bad effects on the rate of success of your binary options trading. As we all know, in that states, it gets really hard to control ourselves and our actions and because of that trading under those emotions is not recommended.

However, some emotions that are considered positive in general, may also have negative effects on binary options trading. Emotions like passion, hope and similar emotions can negatively influence the results of the binary options trading. Even though these emotions are positive too much of those emotions can be devastating for a trader. In our opinion, the best way that a trader can use the trading platforms is to use them only for a small period of time and then take a break. If you go blind into trading, you will soon think that you have the skills of predicting the outcome but in fact you will be far from that and in that way, you will lose your money.

Be Responsible and Keep a Record of All Transactions that You Done

Even though many of traders do not recognize the importance of this issue, it is still very important to have the records of all the transactions that you have done. In that way, you will be able to prove yourself that you are responsible. Besides that, you will also be able to see how successful you were in different emotional stages which will enable you to realize what emotions work the best for you. With as many details as possible, you will have the insight in your traders and what and how to make them more successful.

Believe in Your Trading System

Not believing in the trading system that you have been using causes fear to appear and as we have already mentioned, fear is one of the biggest factors when it comes to the rate of successful trades. This will also make you switch strategies which are never a good thing for successful trading. All of this comes from the fact that many binary options traders are actually trading manual which enables them to switch strategies. However, the question is how a trader can resist trading manually.

Well, for start it is important for traders to realize that trading with the system actually brings profit and that even if it currently is not making a profit it will eventually. If you think that you can do better, that is, that you can make more profit than the system you are misguided. The system considers facts and important information while you on your own take into account dreams, wishes, assumptions and other things. Besides that, you should also test your system for 2 to 3 months and to see whether or not it will be effective in binary options trading. If it is not successful it will be a sign that you need to change the system.

Automatic Trading is Helpful

Automatic trading is nothing to be feared of. Automatic trading enables you to easily make a profit by not spending as much time on your computer or your mobile device. However, you should not fully switch to automatic trading as soon as possible. It is better to make some aspects automatic while keeping some other aspects manually controlled.

Evaluate Your Strategies From Time to Time

Once again, even in this process, you should be able to exclude your emotions. Once you have realized that you can improve your trading strategy write the ideas on paper and let some time go by. In that way, you will be able to analyze whether your improvement will actually improve your strategy or not. Otherwise, those improvements will have the opposite effect on your trading and your earnings.

Fear and Binary Options Trading

If you have been trading for a while, then you have most likely managed to understand that trading is a mental activity. What is happening in your mind determines the success that you could have. However, your rational part of the brain is constantly hijacked by the emotions that you experience. That is why we’ll start a new series of articles which will discuss various emotions that could go through while trading binary options.

Fear – the monster that does not exist?

The most common emotion traders face is fear. Since trading binary options requires you to trade in an uncertain environment, your primitive part of the brain triggers the fight or flight response, or in other words, your body is taking measures so you will be protected in case the outcome of the uncertain situation will be negative. We as humans are biased towards negative and that bias is called the survival instinct.

That survival instinct triggers when you are trading binary options as well. Especially, if you have encountered a loss or a series of losses. It is something natural. However, you won’t be able to trade successfully with fear. That is why self-control and emotional regulation is required. Trading binary options is not easy and it takes a lot of work. You have to face your fears and develop healthy habits that can lead you, step by step, towards success.

Think about how many times you’ve faced fear when trading. Maybe you placed an option and even though the market was going in your direction you decided to close it. Or, maybe you’ve spotted a good trading opportunity, but you’ve encountered a series of losses and you were afraid to pull the trigger. The frustration that follows, when you see that the market went in your direction and you were afraid to ask cannot be described.

One of the greatest challenges binary options traders face is to learn how to work with their emotions. It is a tough process and it requires study, understanding yourself and self-acceptance. Hope this article made you aware of the consequences of fear and maybe you’ll manage to start working with yourself in order to overcome it.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Like this post? Please share to your friends:
All About Binary Options Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: