You, yes you! This is why you are failing when trading
First of all please don’t be offended, everyone has these issues when they start trading. I have written this article because the number one question I get asked all the time goes a little something like this. “James, why am I failing trading binary options, I’ve read every book, I know every indicator, how can I be failing?” Well, from the experience I have gained when I do my one on ones, the answer is generally pretty straight forward. It all boils down to trading psycology or more specifically your views and emotions when trading.
Many people fail when trading Binary Options because of a complete lack of self control. First and formost they are not honest with themselves about their goals and as such can only really gamble their way through their Binary Options venture. Gambling is the exact reason why 90% of traders fail and only 10% make it. Trading is not your local casino, but if you have to compare it to a casino then perhaps this ideaology will help you. Trading Binary Options is very much like card counting in blackjack. You have to wait for the right opportunities to arise and use these to exploit the dealer (in this case broker). Very much like card counting you will lose some of your trades, however, if you are sticking to your plan then you should be winning more often than you are losing.
So why are we so desperate to take risks? Well, its pretty much in our nature. Many of you will find that trading gives you a similar buzz to that of trying your luck in the Casino, that buzz is the very thing that will make you fail. Trading Binary Options isn’t a game, nore is it a drug. If you need a buzz then go sky diving, sing and dance or go to the gym. This leads me very nicely onto my next point, emotions.
Emotions when trading are always troublesome. The key is to not trade using emotion, but rather trade using a plan or on solid technical ground. Emotions cause us to do all sorts of crazy things when trading, but the most dangerous of all has to be anger. Anger and frustration are the exact emotions that the brokers expect you to not have mastered and here’s why. When you lose a trade, chemicals are released into your brain, one of those chemicals is called cortisone. Cortisone has a half life of around 45 minutes, but guess what can negate cortisone? You guessed it, endorphins! Endorphins are one of the chemicals that is released when you win a trade. Now if you put two and two together you might see why many people chase losses and double up. They want the Cortisone gone and the Endorphins flowing.
So how can you learn to ignore your emotions? Its useful to know that this isn’t easy, so don’t be so hard on yourself if it takes a while. You’ll be glad to know that you have already taken the most important step to mastering your emotions, by being aware. By knowing that your emotions can play a part in failure, you can take steps to ignore them. Breaks, exercise, water and music are just some of the tools I use when I can feel my emotions begining to run high when trading. Find your escape, and go to it whenever you feel like your emotions might start taking over.
Though I think its important that people learn to trade for themselves, it is still possible to remove as much much of the emotion involved when trading. This can be done by simply following other peoples trades or “signals”. Following signals can help with confidence when trading as well as help eliminate many of the emotions that surround trading alone. This leads me onto my final point. Generally, following signals are implicit of some sort of community. In my opinion, the biggest reason for my ultimate success are the communities I have been a part of. Why? Because there is support, knowledge and most importantly professional traders who can give you their expert advice.
I have been a member of many signals groups, I have been a member of many trading communities. But by far the best community is the one I am currently in. They have over 2000 members and profitted 79.3% in July across the Top 3 Traders. As well as signals, educational videos and blogs I also work closely with the owner on blacklisting scams. Scams are why the Binary Options industry gets so much bad press, more people are scammed than even actively trade. It puts people off and is is simply not fair to the industy. Don’t forget, if you are ever concerned that a service is not genuine, you can send me an email on firstname.lastname@example.org. I will always try my best to look into it for you and offer my honest opinion. It is very possible to be entirely financially free trading Binary Options. I am going to continue to prove to the world it can be done, right here on Lemon Binary.
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Stay safe and happy trading!