Binary Options calm the trading mind because they take away many of the unknown factors. By taking away the unknown factors, traders can “talk” themselves through their trades and the potential outcomes. Knowing the potential outcomes, calms the psychological impact of both losing and winning trades.
Using Binary Options to Calm the Trading Mind
Although a trader may hear the numerous adages regarding the psychological impact on trading or even seek counseling, seldom does the trader effectively conquer these issues. Since trading attracts highly intellectual individuals, failure is obviously not due to a lack of intellect. Instead, with successful traders, it is the accumulation of experiences trading live markets; the developing abilities to multi-task under extreme conditions while their subconscious constantly guards to protect exposure from unforeseen market conditions. This is a double-edged sword setting up many for failure; yet without the experiences of real live trading then the psychological issues cannot be overcome. The two biggest psychological issues that traders face are:
Fear
Anxiety
Both issues are typically caused by losses. And, with each new loss, the subconscious mind is responding with the stored information that it has available, which at this point is “danger ahead” and takes on a defender role to protect the person from the danger.
So how does a trader change this process? The easiest way to change this process is to create a safer environment. This way the subconscious mind is not recording in a state of survival mode.
Ideally, a safer environment is created by:
- Limiting risk so the trader does not feel “threatened”
- Eliminating the unknowns as much as possible
- Providing an environment that is conducive to learning and building skills in a live account
- Providing an environment to trade multiple instruments with multiple trade opportunities on a daily basis
Binary Options provide a safer environment because:
- The trader knows exactly how much they are risking;
- The trader knows the precise time the trade will end; and
- The trader knows exactly how much profit is available.
By simply removing the unknown factors, the trader is in a safer place. Since the trader does not feel “threatened” financially, he is actually controlling what is fed into the subconscious mind.
Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results.
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