No idealism in trading
Hello, binary options trader! In this article, we will once again discuss the hackneyed topic of the reason for the loss of 90% of traders.
Most of the losers in binary options are idealists. They have created within themselves a model of the ideal transaction, fully confident in the correctness of their trading strategy and market forecasts. This morbid pursuit of the ideal in psychology is called perfectionism.
Perfectionists are people with initially unattainable internal standards, going to the goal, regardless of the possibility of achieving them. Evaluate yourself and others only from efficiency and logic.
A classic example of a perfectionist is the now-deceased APPLE CEO, Steve Jobs. His almost manic addiction in any detail to the ideal became a legend. But in the case of APPLE, it gave excellent results — the creation of iPad and iPhone.
But he had the opportunity to do so because he was the only and authoritarian leader and could do whatever he wanted. The situation in the financial markets is different. Even market makers such as Central Banks and investment funds cannot create 100% exact binary options strategy.
Perfectionists often lose good moments to open position because of a strong fear of possible losses. They are too intolerant not only to their own but also to other people mistakes. In addition, it is difficult for them to understand why signals for binary options are false because they do not take a different opinion and consider themselves to be the most knowledgeable.
The most common sign of this behaviour is the setting of the minimum amount of daily profit and persistently achieving it until it is completely exhausted or loss of deposit. Such traders can always be recognized by a large inscription hanging in front of his eyes with a text like “EVERY DAY FOR $100.”
Naturally, with such an approach to trade, you can not last long. But even found you in the symptoms described do not despair. There are reliable ways to improve the emotional state of a perfectionist trader.
Ways to overcome option perfectionism
1. «Errare humanum est» — «it is Human nature to err. » Without mistakes, there is never progress and professional growth. The trader grows only on his mistakes and the ability to find the right solutions from his failures. If the well-known principle “20/80” is applied to trade, then 20% of success is theoretical knowledge, and 80% is exclusively psychology.
Get Binary Blogger’s stories in your inbox
Join Medium for free to get updates from this writer.
2. Learn to think in the mode of uncertainty.
Financial markets will always be unpredictable, be it Forex, stocks or free binary options signals. Losing trades will always be regardless of any analysis. In the face of uncertainty, most people begin to think inefficiently and this immediately affects the results.
The trader is always left alone with uncertainty-only he makes the final decision and made not to return, the money goes from the deposit forever and it is impossible to return them, unlike the “rest” of life, where you can always change something or agree. This naturally creates a strong pressure on the psyche and to an extreme degree leads to a complete stop of trade.
To overcome this psychological “lock” you just need to look around carefully. Everything around is completely in uncertainty and probability. We are guaranteed not to know what the weather will be tomorrow, how many minutes will pass before the next bus, but the world is not destroyed by this. Take it for granted and live quietly.
3. Binary options strategy will not be able to turn the world around, it is only earning money.
All money will never earn and if you constantly compare yourself with the best players and other people’s results, it will only lead to emotional burnout. J. Soros made billions just because he wanted it, and the opinion of the rest of the world didn’t bother him much. It is better once psychologically to realize yourself cooler than others and calm down.
4. Try to think only about trading.
It is best to focus directly on the analysis of the market and increase the percentage of profitable transactions. Strong attention to the thought of how to make money on binary options, especially when high levels of daily profits are put, will inevitably lead to a disruption of risk management and emotional problems.
A way out of this situation may be to fix the results of trading not in money, but in the number of profitable binary options signals.
5. Do not engage in self-humiliation.
Perfectionists after losing trades begin to gnaw themselves at times stronger than those suffering from chronic depression. How paradoxical it may look, but it is. Get pleasure from the process of trading, and do not perceive the market as a battlefield, where a lot of enemies. Consider even losing trades as a challenge and a source of professional growth.
And always remember that each of us is our owner, regardless of the amount of money and success in the financial markets.
All luck and good binary options trading signals!
