Why are there failures in binary options trading?
Psychology is the straw, which is able to break camel’s back. The matter is that the main difference between a successful trader and an unlucky person is in their inner outlook , which makes you act in different ways. That’s why, if we are speaking about “success” and “failure”, it is not right to scorn psychology.
Our psychological spirit
Have you ever paid attention to your inner spirit before the beginning of the trade? It’s clear that every person trades just because of money. However only positive spirit can help to get profit, wish to develop and improve yourself, master your skills, broaden your professional outlook, but speaking about pessimism, it leads you just to new failures and makes you stop trying, even if you have just started.
Fear – a disease of million traders
Not many traders work with confidence. We are speaking not about self-confidence, despite the fact that “self-confidence” and “confidence” are synonyms. However, self-confident traders are “petty tyrants”, and financial market punishes such kind of people. Confidence is the feeling of right actions, which is formed according to objective factors, thanks to it the fear of financial markets is quelled or is even excluded from self-consciousness.
What does the fear lead to?
Fear leads to the phobia to do deals. For example, you have profitable trading, and number of successful bargains is higher than number of losses. However, such statistics can be as a result of keeping all trading rules and entering the market in any cases, not missing deals. What do we have, when fear gets the best?
A trader starts missing deals, remembering previous failures and thinking about possible new ones. As a result, all best moves are skipped, and those single market entries, as a rule, bring you just losses. How can we speak about profitable statistics, when we have such principles in trading.
Why is the situation like this?
Fear appears according to our psychological spirit. Let’s try to think, how does the feeling of negative spirit appear in a person and why is our subjective perception so strong?
Let’s take the example from our life. You are going past a big shopping centre where at this moment a promotion event is being carried out, which is called “You are a 100 customer”, and for the winner the administration of this shopping center has prepared a present – a luxurious crossover, and you can see this crossover in the hall with nice ribbons, shining with a new color and chromium-plated elements of the body. So, imagine, you are exactly this 100 customer and you could get the prize, but you are going past the shopping centre. There are a lot of people, photo and video cameras in the hall, everyone is ready to clap his hands, having seen the winner. But you don’t know about this promotion event and that’s why you are going past, having not entered the shopping centre and having not become their 100 customer. Tell us, please, would you get upset by this fact? Of course you wouldn’t, because you didn’t know about that promotion event, you were going somewhere, not even suspecting of possible profit. However, imagine that you knew about the promotion event and you knew that if you entered the shopping centre, you would get a new crossover. But on your way to the entrance you slipped and instead of you a round-shouldered man in worn out jacket and glasses entered the shopping centre and he was greeted by the crowd of people, flashes of cameras and ovations, and in forty minutes this luckier man left the shopping centre in his new car, but you went home, limping. Of course you would be shocked from such kind of failure, and you would remember it for a long time.
But in reality nothing changed in your life. You didn’t have a new crossover before, and now you don’t have it too. The matter is in your inner attitude to reality, that is in your personal expectation.
Your unwillingness to put up with reality leads you to new stresses and later failures. Our inner world depends only on us and on the fact how we perceive a situation. Why should you perceive all situations so seriously, when it prevents you from trading?
Generally speaking, profits and losses are the same objective factor like a car, you couldn’t win. They exist and it doesn’t depend on us, because the financial market is full of millions of contracts and it doesn’t depend on fact whether we will trade or not. We can just come and take our part. But to do it it is necessary to overcome this negative spirit, which reduces to zero all our possibilities in trading. At the same time, even if we could overcome our fear and started trading again – our inner negative spirit won’t let us take the reality in an appropriate way, and it will lead us to failures. Our consciousness controls our actions, pushing us very often to do rash acts, confusing us.
“I am a fool” – is a very unprofessional self-opinion, which follows every trader after a loss. More than that, it doesn’t matter whether you are clever or not. Psychologists, who have done trading research in broker’s board, pointed out that people, who were under the influence of emotions and fears, made the same mistakes all the time.
You have been trading binary options for some months or may be even years and you think that you are objective enough to appraise financial asset and every time you make different trading decisions. But in reality it is not like this. Why? Because more than 90% of decisions, which are made by traders, are stereotyped, but they are not objective. Don’t you believe in it? Start keeping a trading diary, describing there all deals that you’ve done, depicting all trading operations in details. You will see that all your mistakes are alike. Trading in a broker’s board is constant psychological tension. You practically don’t have time to think, market fluctuations are not clear, but inside yourself you think just about buying or selling, and the most important thing for you is not to get one more loss, that is not to lose. Situations in the market are always different, and you should behave differently, so you are in the muddle. Exactly at this moment, a trader chooses subconsciously a way of acting, which is not new for him. He does it not because it has already helped him to get profit, he chooses it, because earlier he has done the same. That is it. Is it an objective reality?
What should you do?
Panacea can be different. You can’t change the market. As it has been already mentioned above, broker’s boards will exist and bring profits and it doesn’t depend on you, whether you trade or not. The problem is in your inner self-consciousness. That’s why you should change yourself. Come to the market as the winner and take your part, you’ve deserved it. You’ve deserved it, because you were not afraid to start trading, knowing that binary options trading has many risks.
You should draw a conclusion yourself. However, if you have a negative attitude to trading, it is not for you.